All Forum Posts by: Mario Alexandrou

@Antony Gayden They are all two bedroom units with basements, we are totally re-doing bath and kitchen, floors have to be refinished, new appliances and electric, some plumbing, all walls have to be recoated a few windows, paint. Have had about 3 contractor through there, and all coming up with about the same amount.

Recently bought my first 4 unit building in the US northern Wisconsin, its a start to this new adventure.

Before giving any details on my purchase I wanted to thank Joshua Dorkin, who’s BP blog I found shortly after coming to the USA in 2004. Without BP,  I’m sure I speak for most newbies, we would all be up a creek without a paddle, however that saying goes.

So thanks to you Joshua, and your amazing team Brandon Turner etc.

Purchased property for 100K, brick building, bring in $2000 per month, previous owner had totally neglected any maintenance etc. I want to renovate extensively putting about 20K-25K per unit and bring rents up to about $750 to $800 per unit.

I know I’m taking this from a 2% to a 1.6% ratio but this way I know its a solid product and our PM can place some good tenants, looking long term.

I am very new to real estate investing and have read enough horror stories about PM, that I thought I would share my experience so far.

Im in northern Wisconsin an have been looking to buy multifamily properties here in Superior. The PM I am using is a real estate agent and a investor in multifamily. They have helped me buy my first 4plex, and are now helping me with a total remodel of each unit in the building. My experience so far has been nothing but positive, maybe I have been lucky.

Ben has my Signature, any time. Go Ben.

Looks like I messed up on the Mortgage. Wow.

Hi Derek I'm very much a newbie to all this and am doing almost the same deal, but here is how I have tried to analysis this. Please verify with someone a lot more experienced than I. 

You going to loan $200,000, with $50,000 down plus closing, at 5% interest gives you a $359.00 mortgage payment per month $4,311 per year. Let say you have 10 % vacancy that would leave you with a gross income of $29,700 per year. For arguments sake lets subtract the 50% rule, $14,850 for insurance, expenses property management e.t.c. Less you mortgage $4,311 per year, that leaves $10,539. Divide by 12 months, leaves $878.25 per month divide by 5 houses, leave $175.65 per house or per door.

This is what I'm finding as well, not quite the same but close enough. Is it a deal or not?What I'm concerned about, have the previous owners neglected to keep up with capital expenditure and now dump it on you. Scratching my head.

Thanks for the input Wendy, do you have to put your offer in before I do an in depth due diligence. At what point can I ask for this information.

I have a question as a newbie on BP, going to look at a eightplex , ie two fourplexes side by side. Cost for both side $215,000, income $4250 approx as one unit is still been renovated and has no tenant. Taxes $7695 for both sides. What should I be looking for on first walk around with agent. From what I've seen from the outside, one of the buildings looks like it needs lots of care. I'm sure there has been a neglect in capital expenditure department.

Hi Brandon not so much a subject as a future suggestion on your podcasts. I would think it be interesting to have, say several guests on the show with Josh and yourself all cover one subject. You find participants who are obviously knowledgeable on the subject, and go at it. So you could cover No Money Down, 2% Rule, 50% Rule, on each show what ever the subject.Then that podcast can be referred to on that topic. Would love to hear about due diligence. Thanks

Thanks Dave for the welcome, would like soon to hear your take on investing in Wisconsin. Thanks once again.