All Forum Posts by: Michael Brown

@Derek Harris, Thank you for your response. I estimated stabilized rent, after necessary rehab., at $700 per door after seeing nearby, nearly identical 3bd 1bth 4plex properties with the same rent. Also, half a block away one can rent a 1 bedroom for $500-550 per month. 

Fortunately, the market is pretty stable. Yes, it was hit by the shutdown but not nearly as hard as larger cities. Currently it is mostly open with minor changes for safety. There is a university and two hospital systems within 3 miles of the property. Lots of retail and industrial jobs normally though not at full capacity yet.

The rent roll indicates 2 long term (multiple year) renters. One renter has been there over one year. One unit was open for at least a few months but signed a year lease last February.

I assume pm to be about 10% of rents.

Seller has dropped initial ask price by $15,100; from $175k in Spring 2018 to $159,900 last month.

Current income is: 

$1675 per month/$20,100 per year.

Tenants pay between $325 and $500 per month. Two losest payers have been there 5 and 13 years. Once stabilized they should pull $700 each.

Last year's expenses were: 

$1411 for insurance

$1296 for taxes

$1238 for maintenance

I have been given no other numbers.

My initial expectation to boost value is $25k rehab, (delayed maintenance, updates, and cosmetic.)

I do not know the cap rate. It is a B- or C neighborhood and building.

Ask price is $159,900.

Been listed for 2 years.

I will be attempting 100% no recourse financing or 96.5% through a HUD program, or FHA, USDA, etc.

I would appreciate advice regarding my offer and strategy. My goal is buy and hold for cash flow.

Thank you.