All Forum Posts by: Kevin Whisler

Your assumptions look quite reasonable. At this point it sounds like it's all down to the inspection. If there are no major red flags such as foundation issues, termite damage, mold, etc. then it sounds like you may have a winner!

If I'm reading right, you're looking at $40k down on a $200k purchase price. Add ~$5k in closing costs, maybe $20k rehab budget (adjust as needed from inspection) you are all-in for 40+5+20=$65k. If you can net $750/mo that's $9000/year. That's 14% cash on cash return.

I say go for it.

Joel, thank you for the well thought response! Definitely going to have to keep things like that in mind, appreciate you!

1 Vote

Originally posted by @Alan Grobmeier:

@Kevin Whisler, with a 4 plex the owner is usually responsible for water, sewer and trash. And that should be around $500 a month or more.

And THAT is why it's still available. ;-)

Alan youre a legend, thank you! That makes so much sense. Theres the variable. Now I just have to negotiate that price down quite a bit before i make a decision!

1 Vote

Originally posted by @Jason D.:

@Kevin Whisler fair enough... I would look for deferred maintenance.

A stabilized rental with long term tenants netting $1000/mo is not normally something sitting around unsold

I think the numbers are closer to $750 a month after redoing them. $1100 if its me doing my own property management. And yes, Im going to look for deferred maintenance. Thats my main concern. Thanks for the help!

0 Votes

Originally posted by @Jason D.:

@Kevin Whisler what's the purchase price and down payment? Is that the mortgage the current owner is paying or the mortgage or the mortgage you'd be paying?

$1150 principal and insurance equates to about $200k with 20% down. Where in NJ is this? That's cheap for a quad so it raises a red flag that theres more to it

I haven't released the location specifically just to cover my own butt. I would love to trust everyone, but obviously that not the world we live in. I didnt want someone to go behind my back if it was a good deal! But yes its about 200k with 20% down.

2 Votes

Originally posted by @Colleen F.:

Deferred maintenance could be the issue. Does it need a new roof, new siding, paint job, furnace dying? Who pays heat? Are your property taxes right, just saying you said this was NJ or is there a re-assessment in the works. Insurance will not be the same for you as previous owner so get it quoted. Not saying it is not a go but may not be as strong as you see now.

And definitely try to hire someone for snow removal if you have any day job. You have to plow in a timely way with tenants.

Appreciate that! And yes I was off with the taxes by about $160* a month after reassessment. So that was a big deal. Appreciate the advice!

0 Votes

@Jonathan Gomez

It will definitely give me a hard time when they leave because I will have to renovate individual units before I rent them out.

However I meant that my vacancy percentage was high (I was very conservative with the 7.5% amount.)

For a property like this with long term tenants, it’s probably more realistic to have it at 5%.

However capEx should be around 10% so it evens out however you look at it.

1 Vote

@Rick Thompson thank you rick!

0 Votes

@Jonathan Gomez

This unit is in jersey! So I am not using that program

1 Vote

@Frank Geiger

Yeah I’ve ran the numbers! The property seems decent enough.. just not sure if it’s a good first property for me

0 Votes

@Kris L.

The property is definitely a little beat up from long term tenants but my plan would be to renovate one unit at a time if they ever moved. So my vacancy is actually really high, considering these people have been there for year.

1 Vote

All Forum Posts by: Kevin Whisler

Kevin Whisler has started 8 posts and replied 87 times.

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???

Post: Quadplex seems to be cashflowing 1k a month. What am i missing???