All Forum Posts by: Aaron K.

I'm an active investor in the area.  Small commercial building right on the border of putnam/dutchess counties, single family in putnam county, and two buildings in Poughkeepsie currently in contract, fingers crossed.  Keep in touch if you want!

Peel off the outside corner trim piece, then get a screwdriver and a hammer and get behind the panel.  Then start prying away.  It's likely glued to the wall.

@Larry T. yup, verified with the town.

Thanks again everyone.  Deal didn't go through.  Asking price was $149,000 and my last offer of $125,00 was not accepted.  It's a numbers game and the numbers just didn't work at anything higher than that.  On to the next one!

Amazing story!

Thanks guys.  Good points about the building being so old, even though most of it has been renovated / updated.  Tomorrow I'm going to the town to pull the file.  I'm hoping to find any history of groundwork, or CO's that have been filed in the past, location of sewer lines, any leins or taxes owed, things like that.

I bumped CapEx, Vacancy & Management up to 10% each, and I get 9.24% or $1005/month cashflow. Not ideal but still workable.

About the refinancing, I meant to add - while I'm not necessarily planning to cash-out refinance the property in 12 months, doing so would still allow the property to cashflow if I did decide to go that route.

Would love some opinions on this one.  

2-family built in 1920's, plumbing/heating updated last 5 years, electric updated last 15-20 years.  Everything else recently re-finished (floors, paint, drywall, etc).  Preliminary walk-through reveals above average condition with limited or no deferred maintenance (full inspection to be done before closing).

Purchase price: $125,000 (assumed, still need to negotiate.  Will be cash purchase.

Total rent roll:  $2400/month
Total operating expenses below = $1179/month

MONTHLY OPERATING EXPENSES:
Vacancy (8%): $192
CapEx (5%): $120
Water: $75
Garbage: $75
Management (8%): $192
Repairs (5%): $120
Electricity: $100
Sewage: $75
Insurance: $100
Property Taxes: $130

ROI: 11.23%, or $1073/month

It follows the 50% rule.  
It almost follows the 2% rule - rent is 1.92% of the purchase price.  If the rent was a bit cheaper at 2200, it would be 1.76%. 

If I cash-out finance in 12 months and get $87,500 back at 4.5% for 20 years, that still leaves me with 500/month cashflow plus the potential on that loan amount in the next property (assuming a bank lets me refinance).

Looks like a good buy to me, but I could use some other eyes on it in case I'm missing something obvious.  

Alright, I'll bite!  Kindly request the sauce!

Taxes, insurance?