All Forum Posts by: Vince Futia

Hello BP Community;

I have these two opportunities to purchase 2 properties.

They are student houses, both in excellent condition, no rehabing is required! Both have been placed through the BP Analizyer / calculator, over and over.

I would love to hear from anyone with expereince with this typoe of puyrchase. Your feedback would be greatly appreciated, that includes you Brandon Turner!

Property #1 is a 2 family 4br & 5 br; 2 newly remodeled kitchens, 3 bathrooms, new appliances. Asking price is $228,000.00

Figures: 3200 sq ft

Gross Rents:($1840 + $2250) / 4050/mo ($48,600/yr)                                                           

Expenses: Taxes actual 3920                                                                                            

Insurance: $100/mo;  Water/sewer $85/mo;  Maintenance (5%) $202/mo;                       Misc. (2%) $81/mo TOTAL MONTHLY EXPENSES $1,001/mo ($12,012/yr)

NOI $3,049/mo / ($36,588/yr)

Debt Service ($182,400 @ 4.25% - 30 yrs) = $897/mo ($10,764/yr)

Net Income: $2,152/mo ($25,824/yr)

Cash Invested: $45,600 down + $5,000 Closing costs - $8,100 security deposits = $42,500

Cash on Cash Return: $25,824 net income / $42,500 cash invested = 61%

Gross Rent Multipler ($228,00/$48,600) = 4.7

Cap rate ($36,588 NOI / $228,000) = 16.0

DEAL OR NO DEAL?

Property # 2 is a 2 family 4br & 4 br; 2 newly remodeled kitchens, 2 bathrooms, new appliances. Asking price is $220,000.00

Figures: 2500 sq ft

Gross Rents:($1840 + $1840) / 3680/mo ($44,160/yr)

Expenses: Taxes actual $4360.00

Insurance: $100/mo; Water/sewer $75/mo; Maintenance (5%) $184/mo; Misc. (2%) $74/mo TOTAL MONTHLY EXPENSES  $950/mo ($11,400/yr)

NOI $2,730/mo / ($32,760/yr)

Debt Service ($176,000 @ 4.25% - 30 yrs) = $866/mo ($10,392/yr)

Net Income: $1,864/mo ($22,368/yr)

Cash Invested: $44,000 down + $5,000 Closing costs - $7,200 security deposits = $41,800

Cash on Cash Return: $22,368 net income / $41,800 cash invested = 54%

Gross Rent Multipler ($220,00/$44,160) = 5.0

Cap rate ($32,760 NOI / $220,000) = 14.9

DEAL OR NO DEAL?

Thanks for your feedback!

Clarification, in my area, the students pay year round. this was started years and years and years and years ago. If you want that location you start to pay June 1st to secure the location. You have the option of spending the summer there. Some do, many live in different parts of the state, county. But the option is still there to  live starting June 1st. So thopse numbers are based on 12 months.

Thanks again!

Hi BP community!

Just wanted to get some feedback on a potential investment I was looking at

Facts: 2 family (4br + 4br) / students / Always rented / 2500 sf of living space, house is in very good condition a great deal of remodeling has occurred in recent years, new kitchens, bathrooms

Gross rents $3680.00

Expenses: taxes (currently $4360.00 + Insurance, water, maint, misc (total $950.00)

NOI: $ $32,760.00

Debt Service ($176,00 @ 4.25% - 30yrs) $866 / monthly ($10,392.00 / yrly)

Net Income $1864.00 / monthly - ($22368.00 / yrly)

Cash  invested: $44.000  down + $5,000 closing - $7200 Security deposits = $41,800.00

Cash on Cash Return" $22,368 NI / $41,800 cash invested = 54%

Gross Rent Multipler ($222,000 / $44,160) = 5.0

Cap Rate ($32,760 NOI / $222,000) = 14.9

These numbers were provided by the current property owner, I hoping for such insights that I might not be considering, any concerns.

Thank you all for any insights, thoughts or concerns.

I have a 2 family unit in a college area which will be ready in June 2015 for students to move in. I have year leases co-signed by parents.

I want to collect the rents electronicily, I wish to send out nitifications of rent owed prior to the end of the month, I want o be able to tac on late fee after rent is not received on a specific day. I would like to be able to stop renters in their tracks if they try to p ay the normal rent after the rent is considered late and only accept the amount which includes the late fee.

What systems, programs are folks having success using which is easy to use.

Thanks for your help!

I'm seeking conversations with possible private money lenders for student housing projects in upstate NY (12203 / 12208 / 12206) area.

Please let me know if your interested, we can discuss all aspects.

Thanks

Hey Steve;

Welcome, I'm over in Guilderland.

You will find great help on BP. There are many, many awesome people, willing to help, provide insight and feedback.

Vince Futia

Hello BP Community;

I'm ready to go on "live" with my first property, my niche' is student housing. I was wondering if anyone has electronic payments set up with their tenants. I was looking for a system which I could involve the tenant or have the system do it automatically. If I needed to change the dollar amount I could. Also maybe have within the system know when the payment wasn't received and the automatic late fee would be added with maybe a new involve sent??

Would like to hear from anyone who is doing it currently, the pro's / con's and the name of your program you are using.

I don't think I'll be using one in which all tenants need to have an account from the same bank, that seems difficult. I just want to keep it as simple as possible but be able to paid electronically.

Thanks to all

Thanks Guy for your thoughts, well taken!

Hello Everyone;

Happy New Year!

Would love to gain additional perspective on my first purchase, closing this up coming week on a 2 family property in upstate NY. My question is should I purchase "title insurance" that is being offered? My attorney owns their own title search company. They go back 40 years. I've been told to the best of their investigation, the title is clean.

In NY, as I understand it, the state regulates title insurance. This would be an additional $1300.00 at the closing.

What might be the thought process of other experienced investors, if its clean over the last 40 years, should I get it. I'm paying cash for the property.

Thank you all in advance for your thoughts, it will certainly help me decide better.

Regards

Vince

Hello;

I'm in NY, my niche' is "Student Housing". I've locked up my first property, very nice, clean, great shape. Did not steal the property, nor over pay for it. got it at a fair price. All signed leases for next year are in place, great cash flow.

Looking for a second one. Needing experienced investors insights on how to gain, #2, #3, #4, #5....... properties.

This first one will have no mortgage, paid in full. Idea's of financing for additional properties.

Looking to grow somewhat quickly, just don't want to wait 4-5 years for the next one and so on? Any insights, idea's, recommendations, thoughts, please pass them along.

Thanks