All Forum Posts by: Mellisa A Lantaya

HI - Please review my analysis of this property and let me know what you think.  Also - how would you fund this with none of my own money?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Tim Puffer - excellent points. I'm much rather be conservative on those #s. Thanks!

@Alex Corrion  going forward I'll use 20% down & increase CapX estimates - I agree with more skin in the game.  Thanks!

@Nicole A. ok got it! Thanks

@Greg Scott @Nicole A.

After making your suggested adjustments - 8% vacancy, 5% down and including estimated water bill. It looks a little more realistic :) - $370 cash flow making that 12.71% COC.

@Nicole A. - great points.  Yes I plugged in asking price as worst case scenario and would certainly hope for a lower price, but for the sake of practice I kept it as the asking.

That's a very good point.  I would not be able to live in one while renting the others - as this property is in another state from me.  So I will make the adjustment to 5% as you have suggested. (thanks!)

I budgeted $10,000 for cosmetic upgrades because I haven't seen the property in person and the pictures only tell part of the picture - just in my experience.  This may not be the case in reality, but I like to have some 'cushion' - if that's too much I can make that adjustment as well.

I didn't even consider water - which looking back was dumb... ;) 

The listing did not include the rental income, but I did research similar properties in that area and took the median price of those with same beds/baths. 

Thank you for such valuable feedback!  I appreciate your time!

@Greg Scott Thanks! Yes, I was estimating 5% for each, sorry about that confusion. I think you're right - 8% is a better estimate on those. I'll plug those numbers in and see what the COC return is. Thanks for your advice!

Hi - My name is Mellisa and I'm very interested buy & hold multi-family units. I currently have one rental unit that used to be my primary residence, so I'm just now getting involved in what I've always dreamed of doing....better late than never I guess. :/

I've been reading forums for a few weeks now - and upgraded recently to the PRO so I can practice analyzing various deals.   As I said I'm very new - so please feel free to add your tips and correct any unrealistic assumptions you might see :)  I'm trying to learn all I can before I jump into something ...here's what I'm looking at - 

Fourplex in great condition - each unit has 2 beds/1.5 bath and full basements.  Town outside of Pittsburgh.

Purchase price $199,000

After repair value - I'm not sure how to really estimate this without getting a real estate agent involved and I don't want to waste anyone's time while I'm practicing so I assumed $200,000 (based on online searches of surrounding area -  is there a better way?) - since the units are in good shape I've estimated $10,000 for some cosmetic upgrades.

3% down at 6% for 30 years assuming full asking price.

Each unit rents $750 = $3,000 month or  $36000 annual

Tenant pays all utilities. Property taxes are approx $2800 (based on PA tax online) and about $166 for MIP.

I'm assuming 5% for vacancy, repairs, capX & management fee's.

I'm also assuming 2% annual income growth, PV growth, etc. 

Based on all the above the buy & hold analysis indicated $836.35 monthly cash flow and that's a 45.68% cash on cash ROI - that sounds a little high for this property? Am I missing something?

Thanks for your time.