All Forum Posts by: Noah Kellar

@Ryan Chatman

Ryan, thank you. That is very helpful. On the listing, it says I need to be pre-qualified to tour the property? Do you think they would allow for an inspection before buying? With the price, do you recommend I reach out & negotiate or make an offer in the 330k-350k range? The property would cash flow much better around that price & it would be an easier down payment for sure.

@Dave Spooner

Dave, thank you. Last question for you, in your experience, it is worth making an offer at $330-$350k & negotiating? If so, how would you personally approach?

@Dave Spooner

Thanks for your feedback, Dave.

I did run the numbers through the BP calculator. I found the going rate for rent on the listing per tenant to be $750, which puts income at $3,000. Tax #s from previous year, insurance, & mortgage rate (based on 20% down for 30 years). Tenant pays utilities. 10% vacancy, 10% repairs, 5% CapEx. I would like to manage & do lawn care myself so left that section blank. $2,347 for expenses. It came up with a result of $652 cash flow.

Does this seem far fetched? Would it make more sense like you said to put the purchase price at a $3,000/mon evaluation?

@Craig Parsons

Those numbers are with 20% down at estimated 2.8% for 30.

@Craig Parsons

Thanks, Craig. Ran it on the calculator with 10% vacancy, 10% repairs, 5% CapEx along with $1700 annual tax & $140/mon insurance. Came up with $652 cash flow if I manage myself & do lawn care myself. Tenant pays utilities. $2,347 were estimated expenses & $3,000 gross income. I am very new to this & I know numbers will vary. Ready to fast forward & have that experienced gut feeling.

@Noah Kellar

On listing, says each unit rents for $750.

Greetings!

I am super interesting in multi family properties. I don’t have any yet, but desperately want to get started. There is a quadplex on Zillow for $399,900. The property is an 8 bedroom, 4 bath, & 4 1/2 bath. Each unit has stairs to a second floor. Approx $98/sq ft & built in 1981. I haven’t spoken with the agent yet, but there are claims on the listing that the property sits at a 0% vacancy rate. Sounds attractive, but why aren’t other investors jumping on this? Is the price too high? Additionally, this brick building is right next to its duplicate (which is also for sale at the same price). Tenants pay all utilities & I would do lawn care myself. The property is in a great area & close to good schools. Listing site estimates roughly $1,700 in mortgage, insurance, & taxes with 20% down.

What are your initial thoughts? Call the seller for more info (rental price)? Also, how can this be financed since house hacking is out of the equation?

Thank you in advance!

Greetings! I would love to hear some general & personal advice on analyzing a multi family property. Specifically, in this case, a quadplex. I have been doing my research through readings & the BP podcast. What a great program for someone so ready to jump in! Anyways, I found a quadplex in my area listed on Zillow. The purchase price is at $399,900 for an 8 bed, 4 full bath, & 4 1/2 bath. Each unit has stairs to a second floor. Approx. $98/sq ft & built in 1981. Now, using the simple 10% rule, this property should produce at least 4K/mon in rent, right? I haven’t spoken with the agent yet, but there are claims on the listing that there are long term tenants in place with 0% vacancies. Sounds attractive! But… why haven’t fellow investors jumped on this? Is the price too high? I would love to get started, but if my first property is a 400k purchase, I want to be absolutely sure about it. I will also mention, this brick building is right next to its duplicate (which is also listed & at same price). Tenant pays all utilities & I would do lawn care myself. The property is in a popular area & close to good schools. Listing site estimates roughly $1,700 in mortgage, tax, & insurance with 20% down. What are your initial thoughts? Call the seller for more info? FHA out of question since units are full? What other ways could I finance (BRRRR?)? Thank you in advance!

@Jesse Rivera

Thanks for your feedback also. What type of financing/bank do you recommend?

@Chris Mason

Thanks for your feedback. Obviously, I am learning as I go. What types of banks do you recommend? I am ready to get started but having trouble finding the right financing.