All Forum Posts by: Account Closed

Thanks for your reply and your numbers look great.  However, I'm looking for 10+ years for a reason.  1) The first few years post Bubble anyone could buy low end properties almost anywhere, and 2) Repairs, vacancies and capex don't really show their true (costly) colors until year 10+.

How far away are you from the properties and who is doing the management?

@Seth B.

Really bad investment property.  It is cash flow negative.

I'd pay $147k for this place.  That would get me to $250/month in cash flow AND 15% Cash on Cash return.

Here are the numbers as I see them:

Total Due at Signing $14,850

Mortgage Rate 4.25%

Length of Mortgage in years 30

Monthly Mortgage payment $1,080.55

Taxes $416.67

Sewer and Water $100.00

Trash $- (Does the city pick up trash as part of your taxes?)

Heat/Utilities $50.00

HOA/Legal $-

Cap Ex and Ops $150.00 (this covers everything from snow removal to roof replacement.  $150/month is a minimal amount you'll need to fix at least 1 roof, 2 water heaters and a furnace in the next 25 years)

Insurance $100.00

Mgmt Fee $215.00 (at some point you are going to want to either pay yourself or someone else to field 3am phone calls)

Vacancy $174.15 (1 vacancy/apartment/year)

Total Expenses $2,286.36

Unit 1 $1,300.00

Unit 2 $850.00

Total Revenue $2,150.00

Cashflow/month $(136.36)

Cash on Cash Return-11.02%

Hey Guys, 

I have a old property manager in whose office is giving me the run around on the last months money owed?  What is my recourse? 

Hello All,

It's been a long while since I've been on the forums, but I have finally decided to get serious with purchasing a duplex this year. My apartment lease is up in August so I have set a goal to be in a duplex by then. The idea is that my wife and I move into a duplex and rent out the other side to live in a place for less and have an investment property. While we are living on the one side, we plan on fixing it up, and then eventually moving into the other side, and to do the same thing. Eventually after a year or two we'll move into another place and keep doing that till we have several properties. 

We are currently looking in Madison, WI,  and I have found an attractive property that I am thinking about making a offer on. The house is listed at $255K, and we are thinking about making an offer at $230K. One side is currently rented out to a long term tenant that is $850 on that side. The other side (the one that we would be living on) is $1300.

So when it's all said and done. The mortgage payment would be around $1600/month, but then we would be getting the $850 (maybe more if we can raise rents?). So that would knock it down $750/month. What do you guys think? Is this an ok first place to start with? 

I know I'm a little light in the detail area when it comes to numbers. So please let me know what else you would need to further assess.

Thanks so much!