All Forum Posts by: Roy Gutierrez

I downloaded a spreadsheet calculator and here's the breakdown. I'm including 10% PM even though I would be managing the property, should I have excluded it? Thank you very much in advance!

Somehow I didn't see this section and posted on the wrong section, my apologies anxiety and lack of patience will make people do strange things!

Here's the deal. Duplex in a decent area, not hard to find renters. Haven't seen the units yet but per seller sayshave passed city inspection for rentals, one occupied the other one vacant. Lanlord pays water and tenants electric and gas. Both units have central air and furnace (have to make sure they're separate) water is on one meter. Per the seller the only thing that needs to spend money on is separating the water meter. 

Details:

Price: 98K

Rent total for both units/month: $1,625

Taxes: 3,000

Insurance: $650 

Another issues is that it's a short sale, per the seller the price is what it appraised for. If this deal works for me my only option is FHA but I'm tied up with another property doing FHA so it might be a family member or maybe some other creative financing option. I would be managing the unit by the way.

Thank you!

Any opinions? Seems a good deal to me, decent cash flow, the coc is 8.2% although I read here some people prefer 10%+, first time I'm doing these calculators so I want to make sure I'm not under/overestimating something. Thanks in advance!

One more adjustments to the numbers, my apologies for being all over the place! The first image is the updated numbers with the excel spreadsheet and the other one is from the BP calculator (doesn't take into consideration taxes?), not sure what is BP "Cash on Cash ROI" which is very different from the "Cash on Cash Return" from the spreadsheet (I really need to put the time to become familiar with all the calculations!). If you guys can give me a quick opinion about the numbers, cash flow seems decent specially that it should be higher since I'm going to be doing the management and minor repairs. Thanks!

Got some more information, taxes are much higher than what I thought but the rentals have passed the city inspection for rentals. The owner has a service for snow/grass but I really would like to put that responsibility on the renters, not sure if that's the way to go yet. Attached new numbers.

Thanks for the feedback @Randy Johnston , very true, the bank can change up the numbers, per the seller the number is what it recently appraised for, what is the customary number that the bank uses for an acceptable amount? I would guess the appraisal would be a strong number to propose to the bank with a good chance of acceptance but I really don't know.

I downloaded the "Buy_and_Hold_Evaluator.xls" spreadsheet,  and this is my return if I :

Purchase Price: $98,000

Rehab Costs: $4,000 (supposedly everything is in working order and have renters in so I'll assume right now that I have to spend $5,000 to fix X)

Interest rate: 3.85% / 30 years

Mortgage  $99,888.37

Monthly Mortgage: $468.28

Rent monthly (2 units): $1,625

Taxes: $2,000

Estimated Insurance: $1,000

Better yet, 

I'm attaching the results of putting the numbers in the spreadsheet. I will be doing the management but still including this cost into the calculations.

Thanks.

Hi Asim,

Thanks for the response, well I don't qualify for a conventional, so doing a FHA on the other house I'm in the process of buying, so if I go ahead with the other house I can't do 2 FHA loans, I would have to drop the other house and go for this duplex but again it's a short sale so it's a risk. I'm willing to consider hard money loan if the numbers for this house make sense.

Hi guys,

A friend just came to me with this duplex property, he knows the landlord and just gave me the heads up, don't have to much info yet but if it makes sense want to move quickly.

Duplex in a decent area, not hard to find renters. Don't know the condition of the units yet, they're occupied. Lanlord pays water and tenants electric and gas. Not sure yet what type of AC/Furnace or electrical they have.

Details:

Price: 100K

Rent total for both units/month: $1,625

Taxes: 2,000

Insurance: $1000 (my estimate, don't know how much yet)

This is my first foray into multi-units, what else should I be asking? I'm in the process of another deal for a house that I plan to move into, if this property is a very good deal I can either convince family to buy with me or I might just drop the house I'm planning on buying and buy this one, an outside chance could be a partnership. It's a short-sale by the way, so could be an adventure, anything else that I could offer the seller as an alternative? Excuse my ignorance!

Thank you very much in advance!

Hi Shaun,

Thanks for the response, the reason for the 25% is to get out of FHA, but if its not doable then I will stay the course and do the 3.5% down FHA. Now I have another issue, the PMI is going down the 26th but my appraisal was the 9th, supposedly the bank can request a cancelation of the case number if u havent closed yet but not sure if my bank will do that since I know of one lender won't submit cancelations. Do u guys submit cancellations? Ill give u a call in a few, thanks.

I have a friend that does renovation work with a certain company full time and he mentioned that he would like to earn some extra money on the side, so as a favor to him I'm posting an ad here. Working for this company he knows a lot of different trades, I have used him for some painting jobs and he was excellent and decent pricing! He's looking mainly for weekends and in the evenings. If you're interested send me a message and I can pass along his number and you can talk to him, I'm not a middleman he's just a friend and I'm helping him out. He's in Oakland County Michigan.

Thanks!