All Forum Posts by: Monte Blunk

thanks 

1. I'll rerun with the percentages you both mentioned. 

2.  I don't like having that much cash held up in the duplex and could try to refinance it to get it back out once the rehab was done but haven't done that before so I didn't want to count on having that happen.   Any thoughts on other ways to get our $ back out? 

We are looking at a duplex in an up and coming area in SLC, UT that is near a great park, close to downtown, and starting to see a lot of restaurants and stores coming into the area.  We own another duplex in the area that has done very well but bought it 7 years ago.

Sale Price: 426K

Beds/Baths: 4 beds 2 bath on one side/ 3 beds & 1 bath on other side which can be upgraded to 4b/2bath.

Closing costs: $8749 on 

Mortgage:  4.5 % 30 year mortgage with 25% down

Repairs & Rehab costs: 30-50K to add AC units, new furnace, new electrical panels both sides.  Up date one side by adding additional bed and bath (the other has already had this done and is in excellent condition)

ARV: 475-500K

Monthly income: $3200

Monthly expenses: $2283 (mortgage, fixed and variable expenses, future assumptions) see below

-monthly P & I: $1622

- fixed expenses: $340/month (water/sewer, insurance, property taxes)

- variable expenses: 2% vacancy ($64/month) , 5% repairs & maintenance ($160/month),  cap exp 3% (96$/month): No property management since we do this ourselves for our rentals.

- future assumptions: 2% annual income growth, 5% PV growth, 2% expenses growth, 6% sale expenses

Bigger pockets tool sheet with above data:

Cash flow: $916/month

Cash on Cash ROI: 6.65%-7.57% depending on rehab costs

Purchase cap rate: 7.15%

I know this does not meet the 2% or 50% rule but it seems like a good investment for the area.  Would love any thoughts on this property from other investors. 

Thanks Patti. That is really helpful.  

We are in the process of closing on a duplex that has one side that has tenants that are section 8 tenants on a month to month basis (we think).  They have been there for 5 years and the rent is significantly less than market value.  We were planning on rehabbing that side once the tenants lease was up (which would be the right after we buy since it is month to month) and then renting it out but just found out about the section 8 status.  

Questions:

1.  Is it difficult to not renew the lease on a month to month section 8 tenant.

2.  Has anyone had any problems with buying a home with a section 8 tenant and not renewing the lease.

Any thoughts or insight would be helpful.  We close in a few weeks and just want to make sure this issue will not effect our plans to have them move out so we can remodel that side once we buy the property.  

My wife and I are looking at buying SFH/MFH (up to 6 doors) properties that need work. We currently own a duplex in the 9th East & 9th South area in SLC and a townhouse in Park City, UT. My wife has a very good W2 job and we both have >800 credit scores and I have experience in construction. We are very interested in buying multiple properties and getting to know realtors who are interested partnering with us to find these properties. Does anyone have any recommendations for a realtor who is experienced in finding properties for BRRRR projects or flips? We are interested in sitting down or talking to any local realtors that have experience in this arena and that wants to add a new client.

When you are targeting sellers to approach or send mailings to, do you use a specific equity that they have in the home as a criteria that seems to lead to a better response rate? We were thinking 0-50% anyone have any thoughts about this or tips? What other criteria do you set to help you zone in on potential sellers? We are mostly looking at buying BRRRR properties that are local.

Thanks for the recommondations

New to real estate investing and looking for recommendations for real estate investment lawyers. We are interested in BRRRR properties and buying pre-foreclosures or using hard money to buy properties that need work. Looking for lawyers to help us make sure we have all documents in order and are buying properties appropriately. Any recommendations in Utah or especially Salt Lake County would be appreciated.

@Michael Biggs -  good point.  lesson learned.  One of many. 

@Chris Carson -  The auction.com website had a listing that stated the auction was being held at the courthouse with an address so I don't think it was online.   But maybe I am wrong.   

I tried to strike up conversation with the man who came up with a briefcase as he was walking away but it became very clear quickly he was not interested in talking about the auction.  By the time I turned around the clerk had left.  It all seem very strange.  Maybe it was cancelled.  Again, this is my first time and I was just going to learn more on the process and so I thought I would gain some insight from others as to what may of happened and how to learn more about how auctions are run and the process.  Any insight on where you get your information on local auctions and how they are run would be helpful.