All Forum Posts by: Owen Hogarth

I understand mike i'm just giving you the information the way i have it.

also the seller put in meters that are stuck at 70 degrees he said so i think your correct about him paying for heat/ electric. I'm not sure how much it would cost to put the system in but cant you just write it in the lease that you'll pay "x" per month for heating/ electric charges?

I don't personally know Ohio but the seller put a lot of work into the property, it has a waiting list.

the seller took out a private loan, last year the property was about 90% occupied but at that time they couldn't refinanced because of the market.

then the foreclosure process started now there is red tape on the door and the property is going to be taken back by the end of august.

also like i sad they owe 375 and i think 15k for two boilers

I just found out more today the seller owes 375K and the property is being taken over by the bank on the 27th. If you can fund it in that amount of time it will be a great deal.

15k needed in repairs for 2 boilers, renters want to rent but the bank is starting to put up red tape on the doors.

not realistic as too low?

net expenses for 2007 $79,000
net expenses for 2008 $77,000
expenses so far
jan - june
7258 10477 6487 4888 7325 4228

feb expenses because they recently put about 270,000k in rehab work.

This is an preforeclosure in sale coming up in about 3 weeks. the seller is going to lose it and will sell for 495,000.

its 44 units
need about 10k for two boilers and some paint

gross monthly potential rents are 18,315.00
average rents are 415.00
for the last year the average expenses is 6,500 dollars

Im waiting for the responses from broker i'll updated as i get the info but I think this deal might need too much for me to invest in.

current rents
1BR / 1BA 52 450 23,400 $333
1BR / 1BA 96 575 55,200 $342
1BR / 1BA 56 700 39,200 $350
2BR / 1BA 40 832 33,280 $441
2BR / 2BA 24 981 23,544 $533
average 374

3 averages in the local area
517, 544, 756

the income projected this year
gross income $1,096,693.74

expenses
taxes 35,755
water/ sewer 129,573
gas 62,761
admin /marketing 22,095
repairs 55,146
labor 145,925
contract serv. 52,508
management 32,901
_______________________
total 536,664
before paying for the note 5,113,200 @ 5.38

there are some really high expenses in there that i'm not too sure about and the projected gross income doesn't seem to be giving off a negative cashflow, again the property is 99% occupied but the rents are around 150 dollar average below the 3 nearest complexes.

The property in in houston do you want to take a look at it?

This property is in texas i'm not sure how the owner got himself into this trouble but he has a great 1st mortgage. 5,200,000 @ 5.38 percent for 30 years and 99% occupancy.

he's losing 20k per year

he wants me to assume the loan at 250k + 50k assumption fee so for 300k i can have a property that is losing cash.

this property has great upside though his rents average 300 per month for his 278 units while market rents in the area for similar properties average 550 - 600.

so do you guys think this is a good deal to move forward with?
talking with some other management companies they say the rents can be raised over a 6 month period.

what do you guys think about a 400,000 investment to own this property. Also looking at the OM the property also has high expenses paid to the current management company that is not doing a good job.

Owen

here is the mortgage info from the broker

1) Approx. balance of $5,895,000
2) interest rate of 5.58%, adjustable
3) Current monthly payment 0f $30,980
4) The due date is August 15, 2037, so it appears to be a fully amortizing loan

the thing that worries me is it's adjustable rate mortgage.