All Forum Posts by: Alex Brookbank

for running my numbers I keep it simple. Rent - PITI - landlord Utilites - maintenance//capex . Capex and major upgrades depend on a lot of variables, but routine repairs, Home Depot trips, and small capex (like repairing a roof or purchasing a new dryer) run around 75 per door per month over the year. The triplex per door cost is a bit less.

my triplex situation was actually sort of similar to yours. All units needed upgrades and one tenant was very sketchy, I booted that one and flipped that unit first, while keeping the cash flow from the other two units temporarily. 

@Joseph M. Cincinnati. My cash on cash on my duplex is a bit skewed because I only put 3.5 down. I purchased a triplex value add deal that has a cash on cash return of 30%, because I was able to increase rents while controlling the repair costs. 

The Duplex cash flows 400/month. 

The "minor" problem with late payments would make me cautious. Have you thought of giving notice to one or all of them when you acquire it, so you can upgrade the units immediately? Who is paying for water? Where I am, it's typical for the owner to pay water/garbage/sewer. I have a duplex in a B area, all my maint. expenses (not including water/garbage/sewer) clocked in at around 2,000 for 2015. I purchased a dryer, and fixed a piece of siding that fell off. And I outsource everything.

With rehabbing things, I've found that painting, cleaning, and ripping up carpet are perfect ways to cut down on expenses (if you're not too handy, like me).

I have charged an application fee of $25.00 per person. And only one group has ever questioned it. If they trust you, it's a not problem. It definitely weeds out some individuals - those who reply to my listing post asking if I charge an application fee, for instance, big red flag, particularly when the post says their is a $25 application fee.

Next time, I might use a third party service where the tenant submits their application. Simplifies the process, although it is more expensive than the $25 I charge.

Tanner - a 9 GRM is a bit high. And way too high for the "bad" part of Norwood.

 Pleasant Ridge has momentum. I've noticed young professionals in their mid/late 20s are buying/renting in pleasant ridge. It's moving north along I-71, instead of further west into west Norwood. That's what I'm seeing at least.

I got 3.9 in Cincinnati for owner-occupied ... a few months ago.

Just a quick question if anyone is experiencing the same price ranges I am. I have a couple multi-families (one duplex, one triplex).

My annual premium for my first property, a duplex is about 1,100. My second property, a triplex (just purchased/owner occupied), has smaller square footage, isn't quite as old, and is less expensive.

Anyway, I was quoted 1,390 for this property, which seemed high. So I shopped around and I got a (now finalized) quote from esurance for only 541 a year ... and their replacement value was 100k higher.

Has anyone else noticed this trend with esurance compared to other providers?

Matt,

My first multifamily was a duplex purchased for 165k. After all expenses I'm cashflowing 250 total. This was an FHA, so I had a low downpayment and I am paying PMI.

I just purchased my second multifamily, 115k, which was a better purchase (I learned). If I wasn't living in it, I'd cashflow about $600 total.