All Forum Posts by: Kyle Matthews

Sam W. Thanks for the feedback. I very conservatively estimated 10% of income for vacancies. So the above numbers are not best-case-scenario but I too was thinking the spread was a little thin.

I thought the 50% rule was best for lower valued properties. Once you get past 150k or 200k purchase price, doesn't that requirement decrease due to economy of scale?

Chris, thanks for your input and offer of a referral. If that need comes up, I'll keep your guy in mind.

Steve, thank you for bringing that to my attention.

Steve, heat is natural gas. There are 3 seperate meters. As far as 3 seperate shutoffs in the street, I am not sure. Will have to find out. What problems exist if there are not 3 seperate valves in street? Also, water and sewer are billed seperately - to the tenants.

Chris, I'd rather not say the town but it is in a stable, growing town in South Jersey. Good call on it being Jersey!!

I was thinking taxes are very reasonable too. Yes I am going to occupy top unit for the time being.

Steve, those rents are FMV rents. Unit 1 - 4 bedroom, 1 bath, washer/dryer Unit 2 - 3 bedroom, 1 bath, w/d Unit 3 1 bedroom, 1 bath.

I will be occupying the top unit for the first year.

Landlord only pays heat / other utilities are metered and paid by tenants.

Quoted me at $1,200 for heat. I will ask for a Schedule E to see actual expenses. Thank you for that suggestion.

Chris, it's in the south jersey market.

Hello all,

I've been browsing the site while I socked cash away and I've recently started actively looking for MY FIRST PURCHASE. I would love some feedback on the following deal. FYI My strategy is buy and hold multi families.

3 unit multi family in good location, easy to rent. Listed for 295k, offered 272k with 3% seller's concession only to have the seller come back with 293k but agreed to 3% concession.

Annual income
Unit 1 - 20,400 - occupied
Unit 2 - 15,660 - occupied
Unit 3 - 9,000 - vacant / currently taking applications
Total - 45,060

Annual expenses
Taxes - 6,695
Ins - 1,000
Heat - 1,200 - landlord pays heat, tenants pay everything else
FHA Mortgage - roughly 18,100
Vacancy - 4,506 - 10% - very conservative
Repairs - 4,506
Prop mgmt - 3,604 - quoted 8%
Total - 39,679

Net income - 5,381

Cap rate (-mortgage) - 8%

The top unit needs $8,000 in repairs, but would increase rent 150/month.

Is the a deal?? Thank you in advance for feedback!