All Forum Posts by: Rachel Payton

@Ray Harrell How do you even find financing with only 5%????  Please tell me THAT secret!!

@Clint Farlinger  I am planning on using bankers trust.  When I lived in Iowa, that was the bank I used.  But they don't have a branch in Oregon.  I'm getting super frustrated, because my agent is asking for pre-approval, but all the commercial lenders are saying it depends on the property.  Which is how I thought it was supposed to be, but she's still asking.  She says the seller wants to make sure the deal will close, which I get, but I'm not a full time investor.... yet.  So I can't be a cash buyer.

@Ray Harrell This will be our first investment property. So I know we're a bit of a risk, and you are absolutely right, it is difficult for the "little guy" to get into multi-units. but we have a 25% down payment, and a pre-approval from a residential lender for the same amount. Can't wait til I'm past this part in the REI world!

So they don't take into account the income from the building you're buying at all??  

I am thinking of putting an offer in on a multi-plex in Iowa.  I'm originally from there but currently live in Oregon.  I'm wondering how financing works for commercial properties.  In oregon they base financing on the property you get and the income generated by that property, so you have to have an accepted offer before you can get financing.  From what my agent tells me, you have to have a pre-approval in Iowa before you can offer on commercial.  Can someone confirm/explain this?

Just curious if anyone has built in the Albany/Lebanon/Sweet Home area and approximately what the cost was?  I'm interested in possibly doing a duplex to 4-plex.  Want to get some feedback if it'll be worth it.

I just sold my first rental (which was originally my residence, but kept it when I bought a second) and I'm looking to invest in a multi-family property. Ideally I'd like to have the property owned by an LLC. I plan to either buy the property than transfer to the LLC, or buy the property as the LLC. I haven't decided which would be the better option, or if it even matters. I'm thinking anything from 3-12 units, as long as the numbers work. I have a real estate agent in both Oregon and Iowa keeping an eye out for properties, but I've also been told that I should see a lawyer and an accountant. I'm just confused about what my first step actually should be. When should I be talking to these people??

Yes, it does!  Thank you :)

I expect the operating expenses will be less.  The current owner uses a management company.  I will be managing the property myself.  The high maintenance costs from last year were due to unexpected damage.  I think a fire.  So an entire unit had to be rehabbed.  There is definitely room for forced appreciation.  4 units could use a renovation and all are currently rented slightly below market.  Probably due to repairs/deferred maintenance.  There's a large, unused space that's bare bones on the ground floor (as in looks like a basement, concrete floors and walls)  that could be renovated into an extra 1 bedroom unit.  It is in Lebanon, within about 2 miles of the school and hospital and close to down town.  Yes, if we bought it, it would be above current market value.  Yes, I'm aware it's commercial and have looked into financing, but will definitely need to do more research and make sure I understand the whole process before I make the leap.  If the previous owner was making $17,000 a year without a mortgage, that amount would cover the mortgage I'm expecting to have, and I'm expecting costs to be less.

Sorry if I didn't provide enough info.  This will be our first multi-plex purchase, if we go through with it.

I'm at a crossroads about a 5-plex that's for sale.  Hoping to get some opinions on whether my husband and I should move forward.  Here's some background info:

5-plex.  4-1bdrm and 1- 2bdrm apartment.  Definitely has some deferred maintenance issues and could use a cosmetic upgrade, badly!  All units rented at a total of $2750 gross income each month.  Property is listed for $225,000, and has been on the market for well over a year!  At list, the mortgage, taxes and insurance would be around $1000-$1100 a month.  The expense report I received had a lot of maintenance costs, which was apparently due to one of the units being remodeled.  They didn't list mortgage on the expenses, but overall profit was around $17,000 for the year.  I was concerned about a lack of the mortgage being listed, but if an offer is accepted I've asked for more detailed itemized expenses.

Since it's been sitting so long we thought we might be able to come in low.  Sellers apparent bottom line is 220k.  The numbers still make sense to be profitable at that price, but I'm concerned as to why it hasn't sold already then.  It's not the greatest area, but they are starting to do some developing, and opened a big medical school there a few years ago.  Comparables put the property value at around $192k. I feel like the potential here could be great!  But it'll take some money and time.

Opinions??

@Mindy Jensen  Anything over a 4-plex is considered commercial.  It's only a 5-plex.