All Forum Posts by: Nicolas Blish

Mark,

Love to see success creating new problems!  I'm not well versed in this either but since you have that as an asset in your company you should be able to use that as collateral towards future loans.  How far back is your payment history to prove your profitability on the property?  You will probably have to personally sign on the loan as well but I think you could find a bank ready to make a deal with you pretty easily on that.

Best of Luck!

Sandy,

Augustine is correct, has to be 4 units or less to qualify.  I'm using a conventional 30 year residential loan but it is at a slightly elevated interest rate since it's an investment property and I won't be living in the dwelling.

Also, how are you tagging people in your posts?

Thanks

Tim,

I would definitely use the new mortgage for your cash flow analysis. The previous is paid off and no longer applies to the property. Assuming you refinanced at 80% LTV, you can sell and have a large chunk of money to invest in something with better returns.

To analyze this one, I'd plug whatever applies to you into the BRRRR calculator and see what it spits out at you. I don't think you have enough spread to cover maintenance on this unit though. You're looking at a .5% property... you can find better with your new money.

I'm new to all of this still so see what the more experienced folks have to say.

Derek, what are you doing with your first property?  Are you flipping or BRRRRing?  I would love to help someone local with a flip!  I'm interested in that market but right now I want to achieve passive income while I'm still working.

Norman, maybe growing up in Kenner and going to school in New Orleans hardened me a little but that area didn't seem too bad.  Time will tell though, the unit I'm buying is 44213 Simpson Pl.  I walked the unit next to that a few months ago and it's state was significantly worse with a higher asking price!

Do either of you have a property manager you use locally?  I'm planning on doing it myself but if I get overwhelmed it would be nice to have a number.

My story's about the same as yours, I got laid off in 2015 and now I want income besides a paycheck.  I'm looking smaller than you to start though, offer accepted on a 4plex (first deal)!

Those rents varying so much concern me, I would ask for an explanation on that before making an offer.  The taxes are low because he built on raw land, the assessor hasn't bumped it up yet.  There's room to grow by getting rid of those credits but it looks like the owner might have a good reason to do so...  look at Apt 7 and 8, and 1 and 4.

Apt. 7-2br/1.5 ba $1025.00 per month includes utilities ($150.00 allowance for utilities)

Apt. 8-2br/1.5ba $750.00 per month. Tenant pays water and electricity.

The tenants in this area might not like dealing with utilities, that's a $125 markup just to deal with the annoyance of utilities yourself (1025-150-750).

Similar on 1 and 4, but only for $50 in your pocket.

Interested to see what you come up with on this deal though.  This could be a good case where you need to feel embarrassed by your offer, almost 2 years on the market.  

Good luck!

Hello All,

I believe this is my first post on the biggerpockets forums. Been reading and learning about REI for a little less than a year now and finally about to close on my first deal. I'll put the numbers below and I'm open to people's input and look forward to having an open discussion about what I did wrong and/or right! The unit is a 4-plex fully rented out in Hammond LA. Great to start cash-flowing immediately but nervous about inheriting tenants. Unit is in a grade C type area, rents are only $550/unit for 2BR/1BA. First venture into property management, not sure what to expect on that front. Either way, I'm really excited to start this journey and hope that this can lead me to financial freedom and out of the rat race one day!