All Forum Posts by: Christopher J Lemmon

@Tarcisio - Yes, I have boots on the ground. This duplex is only a few minutes from my other two rental properties in the area. I have driven the community and have a feel for it. This one fits nicely into my growing portfolio in the area. It’s a blue collar community. Very few vacant homes around there and on the edge of town, a bit more rural.

Deal is in KC

Here is potentially my 3rd investment property purchase. A duplex that is currently rented.

Price $83,000

Rents $575x 2 = $1150

Down payment = $20,750

Inspection = $450

Appraisal = $450

Title =$1200

Insurance = $1100

Loan Org. = $1000

Seller concessions = $1500

Total all in = $23,450

Monthly costs

Management = $115

Cap Ex = $100

Repairs = $50

Taxes = $107.5 $1290/year

Insurance = $92. $1100/year

Vacancy = $92

Principle & Interest = $340

Total monthly costs = $896.50

Cash flow = $1150-896.5= $253.50

Per unit cash flow = $126.75

Cash on Cash return = $253.50x12 / $23,450 = 13%

Cap Rate = $7122/$83,000. = 8.6%

Would you take this deal?

Thanks for your comments or questions! 

Run!! 

@Dan Bernstein, do you specialize in blighted, impoverished, and run down neighborhoods? I am not looking for the typical commercial loan program. I know that FHA on the consumer side limits units to 4. What is less well know and info is scant on this is that HUD actually does have loans for low income multifamily housing. That is what I am looking for info on. It’s been mentioned in at least one BP podcast. But I have not been able to find that podcast after listening to it 6 months ago. Info on the internet is hard to find about this, that’s why I posted. Thanks for your reply.

I am interested. Please let me know when you decide to meet.

Does anyone, investor, banker, or broker or loan officer on here, have experience dealing with larger apartments where government financing is available because the area is low income, high crime, or blighted? I am currently investing in an area like this and I want to look into financing on properties that are more than 5 units.

Can anyone point me to threads, blogs or companies that have info on this niche?

Thanks,

Chris 

Does anyone, investor, banker, or broker or loan officer on here, have experience dealing with larger apartments where government financing is available because the area is low income, high crime, or blighted? I am currently investing in an area like this and I want to look into financing on properties that are more than 5 units.

Can anyone point me to threads, blogs or companies that have info on this niche?

Thanks,

Chris 

Most of the commercial FHA lenders I have found have loan size minimums that are far larger than the property values for the area I am looking at.

For instance, an 8 plex listed for $250,000 or a 42 unit listed for $800,000

Does anyone, investor, banker, or broker or loan officer on here, have experience dealing with larger apartments where government financing is available because the area is low income, high crime, or blighted? I am currently investing in an area like this and I want to look into financing on properties that are more than 5 units. 

Can anyone point me to threads, blogs or companies that have info on this niche?

Thanks,

Chris