All Forum Posts by: Mark Paup

I'm buying my first multi unit its 4-3 plexs built in 1950. My question is on the insurance should I insure them for Replacement or Actual Cash Value? 

They gave me the numbers and I called the utility companies and verified. I also had a property management company walk the property and do a rental market report. 

Thanks for your replies!

So I made an offer on a 12 Plex built in 1950. The cash on cash is 12.8% and the Cap is 8.97%. The broker called and said they have 3 offers, but the buying is giving me first shot at $420,000. (Original price was $425,000) I offered $399,000 but the numbers are good at $420 I think. All the numbers look good in my opinion, but it is my first one. The building is brick, new roof, and hardwood floors. Is this a good deal considering it's age etc?

Thanks for the confirmation,

I budgeted for a 5% vacancy, but my question is the placement fee's. I could see that blowing up my budget. 

Looking for advice on 12 unit apartment. What should I budget for Property Management Fee on a new purchase? I know that the fee is 7%, but what about budgeting for turnover? Thanks,

Anyone in the Des Moines Iowa area using Auction.com? Any help with the process would be greatly appreciated.

Good info Keith,

I also have a question about the Sheriff Auction. I have purchased a couple houses off these auctions and had success, but i notice a lot of the investors just collect info on what sold and didn't sell. What happens to the homes that don't sell? I assume it goes back to the bank and they try and sell. Thanks