All Forum Posts by: Matt Fabian

Thanks for all the replies, lots of good advice.  

I currently own 2 LTR properties. Was thinking about a STR. I live about 1.5 hours from Galveston, usually visit once a year. How accurate do you find AirDNA site to be? I plugged in a million dollar ocean front property 3 bed and it estimated about 44k revenue a year, 42% occupancy rate. I then plugged in one of my LT rentals in a small town and it came back as 105k revenue. I live in a small town that has very little tourism. I just cant fathom that a house on the beach in Galveston, an hour away from Houston, one of the biggest cities in the country, would get half the revenue of a house in a sleepy small town. Or maybe I should quite thinking and just trust Air DNA numbers.

I have one duplex I bought a year ago.  Its a pretty nice duplex. 2,000 sq ft per side, 3 bed, 2 bath.  bought right before housing market went crazy. Just has a tenant move out, fixing up that side.  I am hoping to get 2k per month, 1,800 minimum.  The other side pays mortgage, taxes and insurance.  So if I get 2k a month, that would be 24k a year profit on the duplex.  So that makes me question my numbers on the apartment

I would manage the apartment complex myself, so no management costs.  There is no space for other services like laundry or gym.  

No balloon.  amortized.

My investment account is currently worth $380k.  Would you cash it in in order to make a 25% down payment on a 16 unit apartment complex?  I would have to pay about 35k in capital gains.  

Here are the numbers:  

$1.4 million purchase price

25% down, $350k

$10k in closing costs

$1,050,000 loan amount @ 5.25% interest 15 years

$8,441 monthly mortgage payment - $101,292 yearly

$7500 yearly insurance

$20,000 yearly property tax

$10,000 maintenance?

Total yearly cost - $138,742

Average rent currently $850 per unit, 

Year revenue = $163,200

163,200 - 138,742 = $24,458 profit.  Feels like not a great number.  

Each unit is 2 bed, 1.5 bath,  4 buildings, 4 units per building.  Built in the 1990s.  Roof is 8 years old.  No issue keeping it occupied.  Minor improvements needed. I believe rent could be raised $50-$100.  That seems to be were the opportunity lies, in increased rent.  $50 increase in rent = 10k a year for all units.

Thoughts?

I am interested in a bank owned property that will be auctioned off on auction.com. The property (a home on 3 acres) is worth around $250k. I did find out there is an IRS Federal Tax Lien "on all property and rights belonging to the taxpayer." The amount is $21k.  The property has already been up for auction but failed to meet the reserve amount (highest bid was $135k).  I have a few questions about IRS liens:

1.)  since the property has been foreclosed and is now bank owned, does the lien still apply? 

2.)  If the Lien does still apply, this means  the IRS may buy the property within 120 days after sale at the price paid at foreclosure sale, correct?

3.)  If IRS does not buy the property, what happens to the lien, if anything?  My plan would be to re-sell the property.  Would it be unselleable do to the lien?

I really love everything about this property but the lien issue has me totally confused.