All Forum Posts by: Nathan Patterson

I think you should do some more digging.  are there any big employers nearby or are there any thing in the works that the city is trying to develop.  You can look up the city development plans online...usually. 

Speak with a lender about your situation, they will be able to tell you specifics.  I know for Conventional it is 20-25% plus any points.  

Call some local contractors to come out & give you an estimate.  Best way to get a good estimate.  also have an idea of what you want to do with it.  If not....it is gonna be luxury eveything. 

What are your holding & repair costs  Do you have a contractor ready to do the work.  Looks to be quite a bit of work needed.  I'd dive deeper into it before proceeding. 

I would up your vacancy to 8% at least & you cap ex.  it looks like you will have 4 units, so that is potentially 4 hot water heaters($1,000/ea), a/c's, & furnace's($6,000+) that could need replacing all at once.  

Personally, I don't like the cash flow even with the appreciation.  I would want at least  few hundred a month.  Only $16/month it is too close to being able to lose money. 

Is there any other ways to make money with the property that may help with the numbers or to add value?

As far as location, do you have any family in other states that you could narrow it down to? You could also visit the forums here that are for specific states & see what people are saying to help narrow it down. Or think about climate, where do you NOT want to go if you had to look at the property. Or even, figure out what do you want & then find a place that works. Such as, ROI or COC or cash flow or what ever you want.

Who is paying for water, electric, gas, internet etc.?  It depends on your market, but I have seen most rent by the rooms to cover those items.  Also, think about how you will handle disputes between tenants & you should think about how to get into the property every few months to check on things. 

What ever happened to this property?  Did you end up selling or keeping it.  How is it going if you kept it.  

 Have you tried reaching out to an insurance brokerage?  They should be able to find a carrier for you. 

 Wow, that did take some time to recoup.  I think I'll change my appreciation number to 1% then.  It seems like the majority of Mississippi does not appreciate, unless your on the coast.