All Forum Posts by: Manmath D.

Congratulations! I’ve been looking at Spokane too. Curious how you got at that price point. 

Here's the deal : I'm currently renting and few months ago I met local contractor when I was in middle of buying a house. I had mentioned him how I'm looking for a fixer upper. A month ago he called me and told that there's a duplex that's been empty for more than 5 yrs. They guy who owns it lives out of state who is his friend and is now planning on selling it. He took me to this property and we were able to look around but get inside. Property owner is going to be in town in a week at which time we will have access to inside. 

The property needs lot of work done inside and landscape. Structurally it is in good shape and metal roof seems to be fine. We will go inside and contractor is going to give rehab estimate. In the beginning he had mentioned that I should offer him around $20k for the property but when I talked to him a week ago I was told that owner expects somewhere between $25 to $40k as it is a duplex. Again it all depends on condition of the property when we get to go in. It's a duplex with 2 bed, single bath. I don't have property details yet but I'll be gathering it this afternoon. I'm estimating ARV to be somewhere around $125 to $140. As of now I plan to buy it myself by getting mortgage when the project is done.

I have $50k that I'll be personally investing and my friend is willing to bring in what ever is necessary for rehab. If anyone here is interested to jump in, I would rather have someone from bigger pockets to invest with me, someone who has has done this kind of deal before. Since this is my first project and I don't know anything about how to get this done. 

I'm meeting contractor for drinks this Friday and am writing questions that I need to ask him. What questions do you suggest. 

Thank you.

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So I'm going to look at this property tomorrow. I had talked to my local contractor in passing that I'm looking to buy a duplex and he introduced me to this seller. She let me know that as per comps property is worth 215k but needs roof done. She will give me a credit of $10,000 towards roof repair. Selling for $205,000. Rent collected is $ 1460, owner pays for Water/sewer/garbage which is an Avg $200/month. I was told there is a room for rent increase upto $10 to $20. Ideally I want to put 10% down, but even with 20% down it doesn't look good. 

It is very rare to find multifamily house here in rural WA and people are looking to rent. The same seller has One br house she renovated going on market next week for 89k. I'm tempted to go that route. Reason being that my monthly payment will be around 500 to 600 and I can start saving aggressively. Currently I'm renting with payment of $1200/month and I don't like that. 

I would love to find a Multi family but theres none on the market right now. I am thinking at what price point will this deal work for me. 

If I were to live in one unit and rent other, according to my broker my monthly payment would be $1220 for 10% down(tax, insurance, PMI). With this scenario with rent of $735 coming in, my payments will be $485 + ($200 for garbage/sewer). 

What is that property is free and clear? I could ask for owner financing, make an offer around $170k. They could make money through financing. Does this even sound right ? 

Thank you

Theres a house in my neighborhood for sale at 159,500. Lets say I'll be able to get it at 150k. I plan to live in there for 6 months to a yr. According to my local Property manager, they will able to rent it out for 1250 to 1300 (Tenant pays all utilities). 

Purchase price: $150,000.00

Closing cost: $ 3000.00

Down payment : 10%

Loan Interest rate: 4.8%

Gross monthly rent : $1250.00

P&I : $ 540

PMI : $ 45

Monthly insurance : $ 45

Property taxes : $105

Vacancy : $62.50

Repairs : $62.50

CapEx: $62.50

Management : $ 125

Total expense: $1047.50

Rent : $ 1250 to $ 1300

Cash flow : $ 202.50 to $ 252.50

COS : 13.56 %

Purchase car rate: 5.95 %

This will be my first deal. There are lot of people looking to rent here. 

Thank you for your inputs

Hi, I wanted to run this and learn if this is a good deal. List price $252,000. All units are occupied. 

Property tax : $ 3014

Dwelling Insurance : $ 2600

County Irrigation fee: $ 322 Alta Vista

PUD: $ 1700

City : $ 4369 W,S,G

Total annual expense (Does not include repair ) : $ 12,005

To this I'll also have to add mortgage payment. If the property is free and clear I'll try to negotiate for seller financing. If that happens I will be able to rent out #4 unit and increase income. As of right now if you add mortgage payments this doesn't look like a good deal. I'll also see if there is scope to make tenants pay Water,sewer, and electric. 

Current rents (based on tenants getting PUD in their name) :

#1 $ 625 (1br)

#2 $ 575 (2br)

#3 $ 570 (1+ br)

#4 Owner occupied (1br)

# 5 $ 550 (1br)

Total Annual income: $ 27,840

$ 27,840 - $12,005= $ 15,835 (Without Mortgage)

I do not have an agent. I'm talking to sellers agent. Is it a good idea to negotiate with this agent on giving her lump sump amount, so that she doesn't hurt my negotiating with seller lowering selling price (provided owner is willing for seller financing). In this case it will be like wholesale deal for her. 

Tank you all for ur replies. I'll try to gather more info on this and rerun the numbers. And also spend more time reading on multifamily investments. 

 No I'll not occupy. I've rented my primary residence since 2 yrs when I moved to WA state. I plan to move back to Louisville next yr and will invest in multifamily while occupying it. 

Found a 12 units listed for $595,000

Rent collected $79,920/yr

Expenses : 

Tax - $ 3299

Water : $ 4736/yr

Waste : $ 1320/yr

Electric : $ 12,240/yr

Total Expense : $ 21,595

I'm new to this and trying to grasp as much info as possible to get into Multifamily RE investing.

Looks like all water heaters were replaced less than 4 yrs ago. Roof replaced in less than 3 yrs ago. I'll put 20% down. Haven't looked at loan yet. Not sure what APR I'll get. I have excellent credit and 6 figure job.

Thank you 

Yes 5+. Looking for anywhere between 5+ to 20 units. Will Probably need bank financing, not sure what local banks I should approach. I'm able to come up with 20% for 500k to 1 Mil properties. 

Does anyone here know of any good louisville RE brokers ? Looking to invest in Multifamily/apartment complex. This will be my first project, have been reading forum and blogs here. Goal is to buy at least one income producing property by end of this year. 

Thank