All Forum Posts by: Leah Robertson

Thanks Josh! My concern is the cash out of pocket we are using. We already used 25% of our own cash and then another 40k puts us to $100 from our savings. I just thought there would be better ways to utilize our cash. Our numbers work for COC ROI but doesn't it beat the point of using less outpocket cash and moving cash flow to buy another investment? We are good on our rental in the area so our rental will be solid (already have inquiries).

HELP!

We've purchased a triplex and we are hashing on the budget. Are we trying to do too much on the updates? Each unit is approx 600 sqft and we estimate around $900 per month. With just pain, toilet, and tub, we could just make it an okay unit. We are putting a washer and dryer hookups in each unit, fixing the side walk and getting landscaping (which is a must), taking out popcorn ceilings in 2 units (the other unit looks fine) bc there are stains and smoke smell. We bought it for $215k and ARV is hard to comeby bc there are no other units in the same neighborhood. If we could guess, it would be around $250/260k??? Speaking of neighborhood, this is in a million dollar neighborhood and you have a view of the water across the street through the neighbor's big yard and driveway. Btw, this is in NW Florida if you know the area and can give us insight on pricing. (Btw, we interviewed 3 contracting company and this one had the decent price and most honest).

So is this worth $35k??? plus possible another 4-5k if something goes wrong. The property itself is a solid slab. Tile throughout is good and we negotiated a new roof before closing. Is this worth the plunge?? Our cash on cash return on return on investment for 40k rehab is 10.6%

Thank you! We finally figured that out. Working on a different triplex now. 

The wife and I are looking at buying our first Multi unit. We have two townhouses (different complexes) and a condo that we own and rent out but those were just our homes we used to live in and we kept them to rent them. This is the first purchase that we are buy purely as an investment. The property is a Triplex (2 x 2 BR, 1 x 1BR units) in a nice neighborhood with a new roof and some recent upgrades. Current rents are noticeably below market, for the 2 BRs $800 while identical unit across the street rents $1200 a month. After running four square numbers for a 310k purchase we show a 6.5% Cash on cash with very conservative rent of $2600 total and 2k for "rehab" (though we aren't planning any rehab) If we claim to get the neighbor's rent levels then its 14% Cash on Cash, this is just barely the 1% rule though. I feel like I'm missing something, why it the 1% rule seen as "the minimum" when I could get between 6.5% to 14% ROI?

Help me, what am I missing?

Cheers,

Mike and Leah