All Forum Posts by: Lafi S.

The lowest sold comp is for 280k in the last 6 months on 6 unit apartments in the area.

With those additional expenses and the NOI closer to 30k I think it's fair to say that an offer of $235k is a good starting point? Or should I just lowball them at 150k like JScott said and see how it goes?

Bryan, there's a lot of demand for investment properties in this area.

I had another 4 unit plus store front sell for 325k and it was only bringing in around $4,400 in gross rent fully occupied.

So it's tough, the only advantage I have is being the one negotiating directly with the bank and not competing with other buyer's.

So Jon what you are saying is that if I am financing I can pay a higher amount?

The property itself is about 50 years old but renovated in 2005. And it is 100% occupied.

And I'm sorry Joel can you clarify what you mean by CAPEX?

Currently the property is in good shape as-is and doesn't need any immediate repairs, although I have not done a professional inspection everything was in working order and gas, electric, heat etc... is all new b/c the owner renovated it right after he purchased. The problem like most people in my area is that he overpaid and now we are doing a short sale. So I want to submit a legitimate breakdown of the expenses like you guys revealed to the lender to have a good shot at getting this property for around 300k.

Thanks,

Hi guys,

I've been looking into buying my first multi-family. This property is a 6unit. Without revealing the price, I'd like to know what the investors on this forum are willing to pay based on the numbers. I'm sure a lot of you have a general rule of thumb based on the income so I think that might help me make a decision.

Here it is:

Total Income $5,246 X 12 = $62,952

Separate Utilities

Approximate Annual Expenses:
Taxes: $9,829
Water $2,596
Insurance $3,030
Electric $463

Total Expenses $15,918

Gross Income -- Expenses = Approximate Net income $47,034

This is obviously based on the assumption that I pay cash and not borrow money, so what is a good starting point to make an offer?

Yes, I typically deliver Mon-Fri between 10AM-2PM. The logic behind that is that I want the seller when they are coming home from work, and that whoever is delivering the door hangers is going through the least amount of traffic and likely going to get more done in less time.

Asad, my intention is to buy the property. I target pre-foreclosure leads so these are people that are behind on payments and either need to sell or modify their loan.

Anthony,

Closing is in 2 days! So far it's been smooth sailing. My target investment hasn't changed, I will continue to pursue short sales and whenever I run into a property that makes sense to me like this I will buy it for myself...

Good riddance! Is anyone watching the crowd gathering outside of the whitehouse? WOW.

I agree with the above posts. Get to know your market, but in reference to what questions to ask, a typical evaluation sheet would look like this...

1. Why are you trying to sell this property?

2. Address (also ask for a subdivision name if applicable)

3. Number of bedrooms _____
4. Number of full baths _____
5. Number of half baths ______
6. Year built ______
7. Basement? Is it finished? Is it a walk-out?

8. Number of levels (always ask if they are including the basement in this number)

9. Is there a garage? For how many cars? Is it attached or detached from the house? If there is no garage where do they park their car (carport? Street? Driveway? Assigned in parking lot?)

10. What repairs need to be made to make it ready for a new homeowner?

11. What updates or upgrades have been made to the home within the last 5 years?

12. Whose name is on title?

13. What is the monthly rent you need if we were to lease the property ?

14. How much money do you need for the property?

15. Is the property vacant or occupied?

16. What is your email address?

17. What is a good call back number?

18. What is the mortgage balance?

19. What is your monthly payment?

20. Are you behind on payments?

21. Do you need all cash or could you have someone take over your monthly payments?

Thanks Rachel,

Well the president of the association said she would love to talk and then sent me her email without a number. I thought it might be bad form but then again that was the only form of contact info he gave me...