All Forum Posts by: Nigel Ford

     Thank you for your advice

     Ive read that book its great and it has excel info so im going to get excel now even if its gonna cost monthly, but it seems like my area has just enough 2-4 unit buildings for me to filter them down to the few I can afford and that cashflow. Wouldn't adding more filters complicate things?  

Thanks, Nigel

     I have a question. I'm evaluating small multis, and i'm trying to find the maximum allowable offer that still cashflows for me after all projected expenses and the loan payment. What is the most efficient way to do this so that I can have lots of offers to throw out? I can get the maximum P and I payment that works and the present value of the loan from that, but how do I get the purchase price? I appreciate any help on this. 

Thank you, Nigel

@Wes Blackwell

Wow thank you for the info i should’ve went with you as a Sac agent in the first place. I think im gonna do what most of the multifamily investors in California are doing and go out of state. Seems like it just makes more sense. Ive been looking at Jacksonville, fl and as far as ive seen the prices are about half that of Sac with the same rents coming in if not a little less. Plus the laws are in favor of landlords. I am curious about who’s buying these duplexes that seem so overpriced and what they’re doing with them.

      The mortgage insurance makes it so i have to make an even lower offer. Taking the mortgage payment into account i figured it would take a max offer of 110,000 to make it work as is. If i assumed i could make the rents total 2100, than an offer of 180,000 would work. The agent didnt want to offer under 210,000. And that was my last option for small multis in California which im kind of happy about, so im looking into south east areas now. Am I being short sighted here? 

So I've been looking at relatively cheap duplexes in Sacramento, CA, and I would like some of your expert opinions on this duplex I looked at today. I know the market here in California is very much inflated at this point, but I thought I could maybe still make something work with FHA financing before I completely give up on California. The seller wants 259,000 for it and one unit is currently renting for 822 (1 bed unit) and the other is projected to rent for 900 (2 bed unit). I figured the operating expenses to be 736 per month, which includes repairs, capital expenditures, maintenance, water and sewer and vacancy. Do you think I can make it work? This is one of the few duplexes that will accept FHA financing. Any input on this is appreciated, Nigel

    I'm seeing lots of small multis for sale so it doesn't look like that's a problem. I don't want to buy mass quantities of them like I hear people are doing, this would be my first property. If big budget investors are buying large quantities of houses in one area, I understand how that would have a big enough effect to change the market. But wouldn't a small investor that buys a house close by only benefit from that change? Are the towns outside of Detroit like Warren, Southfield and Redford generally safer higher grade areas? Please let me know what I'm not seeing because the price compared to the rent there is definitely something special. 

Thank you and I appreciate the info from all your posts.

What would you say to someone in California that wants to buy a cheaper out of state duplex, would Detroit be a place to consider?

Im interested in the answer as well...

I have a question on this subject; say my goal as an investor is to move up and acquiring bigger multifamily buildings ASAP. Would being an agent and moving up to being a commercial agent benefit me? I hear commercial real estate is all about connections. Thank You, Nigel

    I've found out that both roofs are in need of replacement soon, and I'm not allowed to see the interior until after I get an offer excepted and have an inspection done. What range of an offer would you do?