All Forum Posts by: Nicholas K.

I am starting to analyze deals in an attempt to look for an investment property.  Specifically I am looking for a duplex/quadplex property and I am finding my margins to be very tight.  Perhaps I am looking in the wrong area with low rents or either the property price is too high in order to make the numbers work.  This leads me to think that in order for this to work I need to find a property in a pretty bad condition for a pretty sweet deal.  Is it that rare to find a multifamily that is in decent condition and decently priced to turn a profit?  Perhaps, I need to be looking at properties that are in need of a rehab.  

I am looking to use a conventional 20-30% down payment 30 year fixed rate loan.    

@Larry T.

Thank you Larry for your advice.

I manage the property myself. What do you suggest setting the capex/Maintanence/vacancy percentages at? This house was built in 2001.

I have heard of the 1% rule and I would be stretching to far to get to that number in this neighborhood. Perhaps this isn’t a good house to hold onto long since the margins are so slim.

Thanks again, I appreciate the insight.

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This is my first rental property.  I purchased it under a VA loan with no money down.  I had to pay the VA processing fee of around $5K.  I lived in the property for two years and ended up remodeling the bathrooms doing about $15K in renovations in supplies only. I did the renovations my self after receiving a $30K non-itemized estimate from a contractor.  I saved up $10K in working funds in case of repair/vacancy and I have had the house for two years now as a rental.  

Please don't hold back on the advice, I am willing to learn. Thank You!