All Forum Posts by: Michael Kohlhoff

I recently closed a deal on 3 4-plexs that were valued between 160-180k for each building. We seller financed with 10% down @4.25% for 7 years for a selling price of 340k as is. 10 out of the 12 units are rented with mostly long term renters but all units are in rough shape. The rental market in my area is 97-98% occupancy. Currently we are paying out of cash reserves to rehab the empty units. We estimated about 60k needed to rehab all three properties. In this market what are the options to finance this work so it will not be stretched out over the span of 7 years? Also the rents are about 100 under market rent in the area due to the shape. we were able to get this property before it hit the market. Any suggestions would be greatly appreciated. Merry Christmas!

no this would be with a 90%LTV and assuming a 5% vacancy along with the other associated expenses.

Keith , thats kind of how i see it . the price per unit is around 45k and with what i think is pretty close estimations on the budget puts me around 230 per door net.

i have nothing but problems with the Michigan property. i do not suggest it unless you have very good management and a willing to gamble .

so 230 is right on then :-)

I currently own a 4plex in central WA state and a SFR in Michigan. I am looking into some larger residential properties in the area. My question is: Is there a good rule of thumb you use when researching potential properties on how much net profit you will make per unit? I understand it could be different for each investor, but I am curious about what some other investors think. Thanks in advance.