All Forum Posts by: Rick Roberson

@Copelon Kirklin sent you my email address.

@Copelon Kirklin That is correct.

@Copelon Kirklin Yes, the seller owns it free and clear.

I messaged you back last night but never heard back. If the property we were talking about doesn't work for you I am looking at another that might be something of interest.

@Stephanie P. accepted.

Have a contract on a 7 unit property. Includes Duplex, Quad, and SFH. SFH is next door and on different parcel.

Total after repair value should be 250k+. Looking for $100k for purchase and 30k for rehab on the property. 6 of the 7 units are rented at this time so they are livable, but I will be rehabbing all of them.

Would like to see what is available. Will be refinancing once the rehab and the seasoning are completed, so there are multiple ways to do this. If someone has something that could convert with us being able to cash out equity that would be perfect.

@Bill F. Splitting off the metering is definitely  a possibility. @Brent Coombs also suggested that. I called and the cost is $1200 per meter x 3 = $3600 plus plumbing up meters to the house. Without seeing how everything is run I'll just have to take a wild stab at say $1200, so a total of $4800. That would be a 32 month return on investment and almost an immediate value improvement on the property based off the additional $150 @ 8% cap rate of $22,500. I believe that would have me very close to $100 per door. Just got to verify garbage. Looked at another in that area last night and they are paying $37 per month per door for garbage collection. Crazy.

My concern with the numbers is:

1. There was garbage collection at the location because we saw the cans, but no mention of a bill. Was told only water and sewer. Unusual for the tenant to pay garbage. 

2.  Lawn care. Seems like you could easily mow 20 times a year at $30 so average out to $50 per month. 

Where do people put these numbers at in the equations?

@Jorge Ruiz  that's what I'm getting too. Not much way to value add when the place is already fixed up. Raising rents would be tough in that area. I think Brents idea of separating out the water is the only chance this thing has. Looking into the cost of that now. Thanks.