All Forum Posts by: Logan Reinard

@Gabriel Novotny just sent you a message

@Gabriel Novotny

I have a duplex in Warren and currently live in Cortland myself.  I actually graduated with a Novotny from Lakeview too.  Warren's housing market is pretty diverse.  Some houses sell for $20k and the street over the same size house will go for $160k.  Might be better just to sell the house.  Give everyone their fair share and reinvest your share into a duplex closer to where you live.  I'm not a very experienced investor but the greatest thing i've done so far is invest locally and essentially watch my investment and learn from it.  I constantly ask myself could I own this property if it were 30 mins away, an hour away, a state away, a flight away etc.?  Good luck and please update us with what you end up doing.  

@David Bardwell  do you still have the coin opp washer by chance?  I’m in warren ohio

Robert. I live in this area. Lost rents are around $600-$850. 

Just talked to my insurance agent about this. He suggested to only allow animals if the tenant has renters insurance in case there were a bite.  And it’s basically a one strike your out when it comes to bites.  If there’s a report of a bite, the animal must be removed indefinitely from the residence.  

Does anyone have pet contracts?

@Tchaka Owen Can you get a 30 year on an 18 unit? 

Thank you for all your help

@Tchaka Owen 

https://www.biggerpockets.com/...

^^^ Here is the updated calc^^^

I did not include management fees bc we will be doing it ourselves being that this would be our only rental property.  However, I did add it in the calculation just to see what it would look like down the road if we decided to go that route.

I can definitely check on a 20 year or longer loan.  I figured the on going term in commercial was around 15 year.

There are no major repairs that need to be done on the building.  They truly do seem to be in great shape.  A couple repairs down the road would be new windows in the bathrooms since they are the last to be updated.  Other than that, maybe some updated bathrooms or kitchens.

I do believe that the rent can be increased to $425 however a $50 a month increase in the midst of a corona virus and possible market crash may not be the best timing so I left the rent at $375 for now.  Do you have any recommendations for raising rent to tenants?

I added the extra income for laundry to $350.

Thanks for all the tips.  Let me know what you think

Logan

@Isaac 

@Isaac Rayne Thanks for explaining that.  I got a couple ideas that may help increase rent but in all honesty I believe the rent can go up over night just because it is under priced.  That being said... most of these renters are the type that will throw a fit bc they've been paying so little for so long and they live way under the poverty level anyway.  But like I said, they seem like good people.  Hate to throw out the good to replace with the ones willing to pay more but potential awful renters.

@Isaac Rayne it’s not a “bad” part of town it’s just a lower income part of town. Most of the tennant’s live paycheck to paycheck, drive decent cars but nothing suspiciously nice where you are going to expect repossessions, and work steady jobs. It is not a slum complex by any means. Just filled with people who want cheap rent. Crime rate would Be a bit above average. Surrounding apartments rent for $400-$550/month for a 1 bed 1 bath. It’s not a remarkable location but it is close to a highway and a turnpike, grocery store, community pool, and other other major apartments but far enough away where there’s seclusion from the other complexes

How do you suggest adding value to rationalize higher rent?

So a family member of mine is getting ready to sell his 18 unit apartment complex off market. I've tried to go the route of owner financing but he'd rather just pay the capital gains tax and take the remaining profit to pay off all of his debt so I'd have to go the way of a conventional loan.  The sale price that he would accept at this moment is $480,000 which is $26,600/unit.  Our market is CRAZY cheap in this area and rent is cheap as well.  The apartment complex has 3 separate buildings with 3 new roofs that have been completed within the last 8 years.  The owner converted the rubber roofs into pitched asphalt roofs, newer furnaces within the last 4-9 years, with some newer features like floors, plumbing etc.  

All and all this is a very well maintained complex.  

Only drawbacks to this property is that I would be buying it at the top of the market, meaning it probably wouldn't appreciate much more.  Also, the rent per unit is only $375/month which could be raised but for a one bedroom/one bath you can't be asking for too much.  Renters do cover mostly all utilities and pay for coined laundry services.

Let me know what you think about this... I probably have a couple holes in my projections. I wasn't too sure what closing costs would look like on this sale. I plan to be quite aggressive in the pay back and probably not take much out in terms of "pay" so that I could build a hefty Capex fund then hopefully pull money out of the equity to purchase another multi unit property.

Thanks in advance!

Logan - NE Ohio

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*This link comes directly from our calculators, based on information input by the member who posted.