All Forum Posts by: Michael Henry

@Nate Tauferner for me it would be lack of communication / follow up. Shouldn’t have to ask you multiple times to get information on a property. I know everyone is busy but a simple txt goes a long way.

2 Votes

Originally posted by @Adrien Gonzales:

@Michael Henry thank you Michael, i am barely starting and have also heard from different sources that this is an expensive option but would like to at least see what i’d be working with and analyze the numbers myself to see if this option would work out being that i have a very busy schedule.

Here’s a real life example of a turnkey property; this company rehabs , and manages the property for you. Completely hands off, as u can see numbers look great but the type of financing you use has a huge effect on the numbers shown.

1 Vote

@Adrien Gonzales I’ll tell you that was my initial thought as well it’s a quick and easy way to get in the game, but a lot more money to be made if u simply hire a realitor and find a property on your own.

2 Votes

@Donte Handy my property manager charges me $75/lock to change

1 Vote

Originally posted by @Bjorn Ahlblad:

@Michael Henry @Vincent McClendon has done a great job analyzing financials for you so far. In checking this deal out it will go way past normal numbers.

The rents are very low-lower than the national average of 500 dollars per month and that generally means problem tenants. For a self managed assett it also means a lot of sloppiness. Leases not in order, unclear if last months rent and security deposits were all collected. Tenants won't agree with LL records if there are any. Background checks not done. That means a lot of work and mess for you and you may not have the personality to deal with these issues and tenants directly. You will need to review the leases, get Estoppel certificates for each tenant.

Where did the 82k rent number come from-is it verifiable? Anything the seller tells you-anything-has to be checked by you-unpaid bills, liens, taxes, garbage, etc. Is there a Real estate agent or broker involved? A broker representing the seller does not protect you. I am guessing that at your experience level you may not want to strike a deal with the seller direct-I say that with all due respect Vincent. All kinds of details can bite you in the rear if things are not done correctly and that could cost you serious money and heartache down the road.

The property and the paperwork needs thorough inspection. If you know an experienced agent who can act as your buyer's agent that might be money well spent. If not then get an experienced RE attorney to represent your interest. Potentially there is money to be made here; but it really depends on how thorough you are.

All the best and keep us posted.

Thanks for chiming in, I’m still in the initial stages of researching the property, financial figures were provided to my by my realitor from the sellers agent. This is a class C building the rents avg. $475/mo which is typical for this market. I’ll have to physically visit the property but it looks like it was rehabed recently. Some interior units need minor work flooring / kitchen outdated.

How do u verify the sellers financial records ? all I have to go off of is what his agent provided.

0 Votes

I’ve never purchased anything bigger than 4 units so need a little help analyzing this deal. Goal is to come up with a reasonable offer price and determine if it’s worth looking more into. Currently the owner self manages so I added 10% for property management all other figures are from the sellers financials / rent roll

Apartment building

21 units - 80% occupied

Annual rents - $82,200

Annual taxes - $6425

Annual insurance - $2500

Annual utilities - $8160

Annual Maintenance - $3000

Annual management fee - $8300

All units are rent ready from what I’ve been told very basic could potentially be upgraded for a small increase in rent, rents are pretty much at market averages.

Seller is asking $645,000

0 Votes

@AJ Nemeth your probably right at the time I didn’t rate shop and at this point it doesn’t financially make since to try to refinance.

0 Votes

@Himanshu Patwardhan I don’t you can do that I had to sign an agreement with an agent allow them exclusive rights to list my condo for a designated amount of time.

0 Votes

@Ryan Hanrahan

A private money lender will not get you money for a down payment , but you do have the option of using vehicles like Perosnal loans , credit cards ,and lines of credit which would essentially allow you to buy the property with none of your own money. I’ve used this strategy twice now with great success.

0 Votes

@Jerry Maggiore once you take out any mortgage you are no longer a first time home buyer so you won't qualify for that program after buying an investment property. UNLESS the loan is under an LLC.

1 Vote

All Forum Posts by: Michael Henry

Michael Henry has started 9 posts and replied 73 times.

Post: Investor No-No’s or pet peeves

Post: want to invest in a turnkey property

Post: want to invest in a turnkey property

Post: Cost of Changing Locks?

Post: Help me analyze this deal!

Post: Help me analyze this deal!

Post: What kind of mortgage interest rates are you getting right now?

Post: Renting out condo: Can i engage multiple agents to get it rented

Post: Interested in using creative financing with low or no money!

Post: Buying first house/condo WITHOUT using first time buyers loan