All Forum Posts by: Melissa N.

i can't thank you all enough. He says he doesn't have a managing broker because he owns the company. I can try to call another broker to ask. Something seems wrong here!!

We are in the process of purchasing a 9 unit in South Carolina. Our agent took 10k as earnest money a week ago but just emailed me and said that he needs another 10k for earnest money because the law requires a broker in charge to hold 40% in an escrow account. Is that true?? Let's put aside the fact that he didn't know that in the first place!

I'm a bit of a newbie but I think you have it right. Yes, the rate is higher for Out of State but that doesn't mean SC is a bad place to invest. Your math looks correct but I'm not an accountant either. 

Just as home prices are relative so is the tax burden. I believe the county I live in has the highest tax rate in the country so to me - SC is fantastic. For a property we are looking at the difference in out of state vs resident is $800. That's not a deal breaker as long as you can still get the cash flow. 

Would it be less in NC? Perhaps but I'd probably be paying a lot more. 

@Emilio Ramirez How do you determine the discount? 

It's an older building (1950s). The seller says it was grandfathered in but in the event of a fire the city will only allow a single family. It is in a residential area (only 1 other building like this, built around the same time).  

Just trying to access the risk. I think we are getting a fair deal, not a great deal. I'll have to just get on the phone with the city when they are open and try to get some more details.  

Yea, same Columbia place...gotta love due diligence! I'm trying and trying to call the city but no luck with Good Friday. I'll have to pick it back up on Monday. It's going to drive me nuts all weekend! 

Would you buy a property that is currently zoned for multifamily (over 5 units) but if it ever burned down it had to be converted to Residental? Is that a thing!? My realtor says this property cannot be rebuilt as multi-family if anything ever happened. I have to call the town but it's good Friday so all has stopped. 

Thoughts? How do you think this will impact resale later on? 

Welcome! I see you are a Pro member so you can access the archived webinars. Lots of great info. 

Yea, that counts 25k for renovations. Some units just need some 'refreshing' - paint, new appliances (in kitchenettes), etc.

The day we buy it the cash on cash isn't great but we will implement the rubs right away which saves about $900/month. 

Is this a good deal...

Purchase price $398000.

Current NOI $25,515. Monthly cashflow $258.

Money Down: $50k and a 5% rate (owner financing...is that good?)

The plan is to immediately implement Rubs and fix two apartments so that they rent for more about $350 more per month.

Over the first two years we will continue to bring the other units up to market rent creating:

NOI of $44,323

Cash flow of $1825

Cash on Cash 28.64%

Thoughts??

Welcome, BP is an amazing and will teach you as much as you want to learn! Check out the tools menu for Calculators that will help you analyze deals. I had an elaborate hand-written one before finding that. 

What kind of properties are you looking to buy? SF, multi, flips? Set your goals and stick to them no matter what!