All Forum Posts by: Keegan Darby

@Bob Okenwa Thank you. What is a typical interest rate w/ seller financing? Also, is there a typical % they want down? 

@Joe Scaparra This is excellent. Thank you. One of their leases is up in October, the other is MtM. 

I know I can get $650+ as is and likely $700+ with about ~$5k of rehab in each unit. 

We are in discussions with a property owner for his 4-plex for $240k. 

With 20% down + estimated closing costs + appraisal, etc. our total invested would be ~$57k. 

The property is too good to pass up (24% CoC ROI all things considered). But, we only have ~$60k total in savings.

What can we do to make this happen? 

We want to raise the prices $200 each on our duplex and via CraigsList Ads have found there is a demand. 

Has anyone ever bought a place then raised rents immediately on the tenants?

We are under contract on a MFH in Coolidge, Arizona. Each unit is 2/1 and has window a/c units (no central HVAC). They look nice inside.

It's been difficult to find data on comparable monthly rent rates. Two questions: 

1) Has anyone every posted a listing on Craigslist prior to owning the property to determine generated interest at a certain price? 

2) For anyone local to the Coolidge area, or with property there, what are you getting on rents for 2/1? 

@Jaysen Medhurst Thank you. After taking all this into account, what CoC ROI % are you looking for?

Details: DSFH built in 1970. Rents for $750/month. Current owner is paying for new roof. 

P&I, tax, insurance: $327

CapEx: $100

Repairs: $100

Vacancy: $37.50 (5%)
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$564.50/month cost

So, $750 (monthly income) - $564.50 = $185.50/month = 185.50*12 = $2,226

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Down payment: $14k (20%)

Closing costs: $2k

= $16k

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$2226/$16000 = 13.9% CoC ROI.

Should I do it?

Details: Duplex built in 2001. Each unit rents for $750. Tenants pay all utilities. 

P&I, tax, insurance: $784

CapEx: $100

Repairs: $100

Vacancy: $75 
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$1059/month cost

So, $1500 (monthly income) - $1059 = $441/month = 441*12 = $5,292

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Down payment: $36k (20%)

Closing costs: $5k

= $41k

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$5292/$41,000 = 12.9% CoC ROI.

Should I do it?

Details: 

Duplex built in 1940. Each unit rents for $600. Window a/c units, there is no central a/c. Self-managed. 

P&I, tax, insurance: $561 

CapEx: $100

Repairs: $100

Vacancy: $60 (5%) 

Water & trash: $55
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$876/month cost

So, $1200 (monthly income) - $876 = $324/month = 324*12 = 3,888

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Down payment: $24k (20%) 

Closing costs: $3k 

= $27k 

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$3,888/$27000 = 14.4% CoC ROI.

Should I do it? 

Comparing a duplex from 1940 and 2003: 

Neither requires immediate rehab.

The older duplex cash flows $550/month (30% ROI all things considered) and the newer one $350/month (14% ROI).

The older one has window a/c units. The newer one has central air. Both in the same town.

What would you prefer and why?