All Forum Posts by: Kevin Barry

My wife and I own an LLC (Partnership) that has invested in Open Door Capital. Our partnership just received our K-1 for 2023. I realize that our partnership would need to file our 1065 for 2023, but would then the partnership issue subsequent K-1s to me and my wife, to which we would include when we file our personal taxes? Not exactly sure how this would work to make sure we are taking advantage of the loss reported for our own personal taxes.

I'm curious... Would you be able to do a 1031 exchange where you are using the proceeds of a sale of a rental property to invest in a syndication deal?

I’m a small time investor in the Midwest (currently own 12 units) looking for a feedback on a potential deal.

Key Numbers:

Total Units - 4

Purchase Price - $220,000

Monthly Rental Income - $2200 ($550 for each unit buy my market analysis is closer to $600)

Mortgage - 15% down at 4.0% (5 Year ARM)

Projected Monthly Cash Flow (factoring in the increase in rent to $600) - $600

Cash on Cash ROI - 20%

It seems like a no brainer but it would likely make it the highest purchase in the area (with other similar 4plexes), with $210K being the next closest comp. Plan is to hold it long term so not necessarily worried about market fluctuations over the next 5-10 years, but it scares me that I’m paying above everything else in the area. Am I overthinking this?

Hey everyone - I've had an offer accepted for a fourplex at $210K (listed at $220K). The inspection was conducted and there were a few minor items that need to be addressed; however, the main concern that I noticed from the inspection is the age of the heating and cooling systems for each unit (all are functioning properly).  Below is the breakdown:

Air Conditioners 

Unit 1 - 14.5 Years Old (Life Expectancy - 20 to 25 Years)

Unit 2 - 21 Years Old (Life Expectancy - 20 to 25 Years)

Unit 3 - 27 Years Old (Life Expectancy - 20 to 25 Years)

Unit 4 - 19 Years Old (Life Expectancy - 20 to 25 Years)

Heating Systems (Forced Hot Air Heat)

Unit 1 - 13.5 Years Old (Life Expectancy - 20 to 25 Years)

Unit 2 - 12 Years Old (Life Expectancy - 20 to 25 Years)

Unit 3 - 15.5 Years Old (Life Expectancy - 20 to 25 Years)

Unit 4 - 12 Years Old (Life Expectancy - 20 to 25 Years)

We knew the systems were old before our original offer at $200K (but not exactly sure how old).  Do you think it would be unreasonable to come back down to my original offer at $200K to address these concerns or should I try to tackle other items on the inspection list. Also, am I being unreasonable with any concern at all?  Only one system is past its expected life - I'm just worried one will shut down the day we close and then I'm stuck paying for it. Any thoughts??

@Marlen Weber @James Storey Appreciate the feedback!

I'm a small-time investor in the midwest (currently own two rentals) looking for feedback on a potential deal.  

Key Metrics:

Total Units - 4 (All Occupied)

Purchase Price - $165,000

Monthly Rental Income - $2,400

Projected Monthly Cash Flow - $530

Cash on Cash Return - 14%

Other Notes - All four units were renovated a few years ago so maintenance should be relatively low. I would also like to eventually move utilities back to the responsibility of the tenants. The house is located in a small college town (within walking distance to the college) and is in pretty good shape. All tenants have been there for awhile.

Monthly Breakdown:

Rental Income                            $2,400

Mortgage (25% Down; 4.75%)       ($645)

Utilities (Paid by Owner)             ($600)

Maintenance (Estimated)            ($100)

Vacancy Reserve (5%)                  ($120)

Property Taxes/Insurance            ($270)

Management Fee (6%)                 ($135)

Monthly Cash Flow                      $530

Is this deal worth it?

I'm a first time investor, and I'm looking at a fourplex with the following numbers:

- Purchase Price - $175,000 (includes $15,000 in cash back referenced below) 

- Monthly Rent - $2,125

- Monthly Cash Flow - $1,158

- Cash on Cash ROI - 28.5%

There are a few minor repairs (replace a water heater, fix flooring, etc.) that I'll need to take care of (~$5K).

The main issue with the house is the electricity is not up to code (includes replacing the fuse box, FPE brand electrical panel and rewiring). My realtor had an electrician come out and provide a quote on what it would cost to get up to code, and he estimated $30K, but he also said that it is working fine and "if it were up to him" he would not do anything until absolutely needed (which could be in 20 years if everything is still functioning properly).  I'd like some cash back on the purchase to protect myself, but right now the owner only is willing to give $15K. 

How would you handle this? Has anyone run into this issue before? Looking for advice because ROI is great!

Thanks!

Kevin 

Thanks for the help!

Which conventional loan lenders in the Lexington, KY area are the easiest to work with?  This is terms of the best mortgage rates, ease of working with, how quickly you can get qualified, etc.

Thanks!!

Kevin