All Forum Posts by: Henry R.

I'm scheduled to look at this 4-plex later today.

Asking price is $109,900 Price has been lowered to 99,000

My agent is now saying they have a couple of offers

The units are in good condition and fully rented

22500 25% down if bought at 90K
Loan rate 5% 30 yrs
Monthly rental minus 10% vacancy $2070
Home owners 700 yr
taxes 6300 yr
monthly expenses $620 not including PM

RENTAL INCOME 24840 YR
Total expenses 18784
Total loan payments 4344
Cash flow $6056
Intrest expense $ 3375
Depreciation $2945
Total tax deduction $4080
Tax saved -612

Net after tax cash flow $5444 or $453 per month

This is from an on-line Investment Property Calculator.
I kept it as short as I could.

These figures are at 15% discounted price

Purchase Price $93415
Down payment $23,353
Loan rate 5%
Term 30yrs

Monthly rental less 10% $2070
Home owners 700 yr
Taxes $6300 yr
Monthly expenses $620 NO PM

Rental Income 24840
Total Expenses 18952
Cash Flow $ 5888
Intrest Expense $ 3503
Depreciation $3057
Ins, tax, other expenses $14440
Total tax deduction $-3840
Tax saved $-576

After Tax cash flow $5312 or $442/mo.

Taxes are high in NYS.

There is a misc expense that is included in the figures at $ 4739 per/yr, for plumbing,painting furnace repairs( looks new) etc.

Thoughts anyone that is into buy and hold? It's a tad over $100 per door. I know Brandon Turner likes to see $200 per door on a 4plex, that has been tough for me to find at this point.

Does not need any rehab at this point all expenses includes debt service

Does this look like a good deal?

Thanks so much to everyone in advance.

Alex,

I made an offer on a 4 unit and I just went back to get the gas meter # for the cost of heating the home. My point? Get all the info you can, anyway you can short of breaking the law of course. That will not hurt you knowing all you can of your costs.

My offer of 79K on a 4 unit property that was first listed at 109.9K was turned down. I was told by the agent I'm working with the the seller came back at 99K, however today my agent told me the bldg listing has been changed to 99k, not sure why she first told me that was his counter offer maybe I missed something. I made a second offer of 85K and he came back at 95. Now it gets interesting ( for lack of a better word) my wife thinks I'm rushing and before she was saying she be more happy if I went out and got something, because I've been reading all the time ( on BP) and internet for properties,lol what the heck! Anyway my agent told me that she thinks the seller's agent will be able to talk him down to 90k from 99.

In short all expenses are 18,784 including monthly payment the income is 27,600 fully rented/ 7790 per year or 24,840 less 10% vacancy, or 5444 per year, no PM. This is at 90k minus the 25% Down Payment. I'm thinking it over at this point if I should go up 5k.

My Offer will be submitted tomorrow morning.

Jason, Check your comps in the area and also make sure you find out all of your expenses on the property. it's a good idea to know what property rents for as well and how much you plan on putting into it cash wise. That's my .02 cents

Thanks Matthew,

Rotterdam is very nice, hard to find Multi Family though.This property is in a decent area of Schdy.

yes it does the monthly payment is 362 or $4344 per year.

I haven't own rental property in 7 yrs and when I did I lived there first, then bought my first single family to live in. So I didn't buy my first 2 family as an investor. So I'm trying to do that now. Sorry, I'm still learning all that goes into doing my due process.

Thanks for the replay Geoffrey,

I haven't seen the inside yet I will look at it later today. It's listed as "good" condition turnkey. The outside looks good, but it has a slate roof.

I'm scheduled to look at this 4-plex later today.

Asking price is $109,900

These figures are based on a purchase price of 90K A little more than 20% disconut price

22500 25% down
Loan rate 5% 30 yrs
Montly rental minus 10% vacancy $2070
Home owners 700 yr
taxes 6300 yr
monthly expenses $620 not including PM

RENTAL INCOME 24840 YR
Total expenses 18784
Total loan payments 4344
Cash flow $6056
Intrest expense $ 3375
Depreciation $2945
Total tax deduction $4080
Tax saved -612

Net after tax cash flow $5444 or $453

This is from an on-line Investment Property Calculator.
I kept it as short as I could.

These figures are at 15% discounted price

Purchase Price $93415
Down payment $23,353
Loan rate 5%
Term 30yrs

Monthly rental less 10% $2070
Home owners 700 yr
Taxes $6300 yr
Monthly expenses $620 NO PM

Rental Income 24840
Total Expenses 18952
Cash Flow $ 5888
Intrest Expense $ 3503
Depreciation $3057
Ins, tax, other expenses $14440
Total tax deduction $-3840
Tax saved $-576

After Tax cash flow $5312 or $442/mo.

Taxes are high in NYS.

There is a misc expense that is included in the figures at $ 4739 per/yr. I need to find out what that is.

Thoughts anyone that is into buy and hold? It's a tad over $100 per door. I know Brandon Turner likes to see $200 per door on a 4plex, that has been tough for me to find at this point.

What would be your offer on this property?

Thanks so much to everyone in advance.

Welcome Julie, best wishes to you! BP is a great place to gather info and make contacts.

I also just written up 2 letters, that look like invitations for 2 single family homes that will be in the mail box tomorrow morning. I have a flipper that has seen pictures and is willing to go look at the properties should I get a response. He's a long time friend and is very good at what he does. I was a small investor on one of his projects. I got to make a little money and see some of what he does. So I am taking some action, but the ball is rolling slow.