All Forum Posts by: Logan D

Max and Michael. Thanks so much for the help. Those estimates were auditor values, and I agree they seem a tad bit over priced. I decided to scrap the deal, and realized not much potential existed, thanks to you help.

I've been looking more around the neighborhood and have found smaller houses and such nearing the 40-50k prices as Michael had stated. Should I have any qualms going into houses versus condos/duplexes?

Michael, thanks for the quick response.

Unfortunately, in my surrounding areas, a majority rentals/condos/duplexes are priced based on both cashflow and a higher land value, due to the increase in new builds in the area.

I've been looking for units in that price range, but I haven't really seen any on the market that weren't up for auction or such.

The rent on these units can be pushed to 700-750, but I may have to look for some new tenants.

Any thoughts?

Hi Everyone!
I'm a first time investor, looking to gain some wisdom and experience in the market. Any criticism or help would be greatly appreciated, and I thank you in advance.

The Property "Portfolio" consists of 3 Duplexes, all located in vicinity to each other

Total Deal: $395,000
25% Down, 5.5% Interest 360 Months
$98750 Down
Mortgage Payments: $1682.07

Duplex 1:
$120,000
2 Bd 2 Bath: 675/month
2 Bd 2 Bath: 675/month
Tax: $2280
Total Rent: $1350
Auditor Value: $130,000

Duplex 2:
$135,000
2 Bd 2 Bath: 550/month (25 Yr Tenant)
2 Bd 2 Bath: 660/month (Long Term Lease)
Tax: $2670
Total Rent: $1210
Auditor: $130,000

Duplex 3:
$140,000
3 Bd 2 Bath: 676/month (subsidized, Long term)
2 Bd 2 Bath: 675/month
Tax: $2300
Total Rent: $1350
Auditor Value: $154,000

Gross Rent: 3910/month*12= 46920

Expenses:
Tax: $7250
5% Un-occupancy (On two duplexes): $1620
Misc. Repairs ($1200 Per Duplex*Tenants Maintain Exterior): $3600
= $12470

34450 NOI/ 395,000= 8.7% CAP

34450 NOI-20185 Mortgage= $14265 Cash Flow, or $1189 a month

14265/98750= 14.4% Return

I've been looking for quite a while, but I want to know if this is a good deal. Is there an flawed calculation, or am I missing anything?

Any help would greatly be appreciated. The seller is also considering selling the properties separately, at the above prices. Should I do the combo deal, or pick and choose?

Thanks for your time in advance.