All Forum Posts by: Tammy Richards

 @Anthony Cennami - love your description of a roof and siding that would require property insurance of $1800 per month!  Not that bad, fortunately, just ugly asbestos painted what I would call "baby s*^# brown"...

@Tom S. Yes, for sure - I budgeted in over what was paid last year for oil (that 6200 was 5500 last year), because oil is so variable - but you are right, it could well go wayyyy up. I wish we had natural gas too... 

I wish even more that each tenant had their own system, but that seems unusual in this city, most properties I've viewed have one system for all units.  

@Liam Goble  (sorry, the @ key function is not working for me... nothing popping up to link to your name).

Snow removal - owner pays (I included in my line for maintenance, as well as trash and lawn care).  

Thanks for running it on your calculator - I come up with a decent cashflow as well; it's helpful to have others take a look at it.

Tammy

Sorry, yes, this is why a cut and paste from a spreadsheet is not such a good idea!

5300 annual maintenance costs

1800 per year property insurance

@Liam Goble - oh, I wish $1800 was high for property insurance, but with asbestos siding and a flat roof (which is in excellent shape) there were several companies who would not insure it!

I've had a lot of fun analyzing properties for months now.   I think I found one to buy, and would like some feedback from the many of you who are way more experienced than I.  My goal:cash flow, pay down the building to build equity to either purchase additional properties.Plan on holding for 15-20 years.

4 unit building, a large triple decker with addition. in small, working class city in Maine. Ugly asbestos siding, with a nice side yard and river views from a couple of rooms.  Class C neighborhood, quiet but walkable to downtown, possible appreciation if this small city gains favor through people not being able to afford the bigger city up the coast – but not counting on it. Renters are low income, Section 8 in the smaller 2 BR units, large and/or extended family living together in the very large (4-5 BR) units

Purchase price 265K

Loan 265K, seller pays5K closing, 4.67% interest rate for 30 years, $

Taxes $4251

Total rental income $4665 month (1 5BR unit, 1 4BR unit, 2 2BR units) – rents are maxed for this area, they are high because of the size of the units, they all have washer/dryers, and small dogs/cats are allowed.

Area average vacancy rate 14%

Property management 10% of rent

Property insurance $1800/month

Maintenance $5300/month (I budgeted high, deferred maintenance on this one, will take a while to catch up)

$281 annual electric for common areas

$1388 water/sewer

$2400 annual Cap Exp (estimated roof life as of now – 20-25 years, heating system – 15-20 years

$6100 heating bill (oil) last year

20 K is needed to repair foundation issues and one bathroom in need of repairs (I'll pay out of pocket next spring).

Your thoughts?  

Welcome! I was born in Greenville but my family moved back to Massachusetts before I was a year old (they didn't want me to have an accent - cause you know, people in Massachusetts don't have accents). I'm currently in Maine and swear I'll move south one day. I second the suggestion to go for the podcasts!