All Forum Posts by: Rick Hernandez

Common issues are ungrounded three prong outlets which need to be converted back to two prong.  They will look for cracked windows.  Gfi around sink  , peeling paint, carbon monoxide detector, smoke detector and other common sense type things.   Of course it sometimes depends on who does the inspection.  The link has a document with the most common issues

Rental inspections aren’t too bad.  Cedar Rapids inspections take place every 4 or 5 years.   Here is a link. http://www.cedar-rapids.org/residents/rental_services/index.php

@Dan Romnek  Thanks for the feedback Dan.

Thanks for the reply.  @Jaysen Medhurst  If I can transfer electric to their names that will add an additional $2,000 or so to annual cashflows.  I will rework numbers with your suggested percentages to see how things look.

@Tom Nguyen  Thanks for the reply Tom.

Good morning,

Here is my background. I am a newbie investor who purchase first home about 5 years ago. Since that time I have acquired a total of 8 SFH in my area. All of the homes cashflow well, are located in good areas so that resale in the future shouldn't be an issue. I am cash-flowing fairly well considering my homes weren't in real bad shape. Mostly cosmetic repairs needed.

I have been looking for a multi for so long but I typically find them to be overpriced but they all go pending very quickly.  Makes me scratch my head like I might be missing something.  I have been evaluating this deal and I am curious on your thoughts.

Background on this deal.  Owner has owned this since 2008 when he purchased this on contract.  He has it listed for $115,000 a drop from his original list price of $125k.  He lives on site in the two bedroom unit so I need to make assumptions on what that might rent for.  All of the mechanicals are 10 years old and the metal roof is 1 year old.  Siding is vinyl.  so cap expenses should be minimal for some time.

He currently pays for electric, gas and water.  The rub here is that the electrical meters are all separated but I believe most people don't realize this since it is not stated anywhere.  I am thinking there is some opportunity here to slowly switch electrical into tenants names or to bill them for actual usage.  Three units are completely separated and the fourth is metered to the house.  If I adjust for three of the units paying their own electric than my approximate electrical usage drops to $2066 per year which increases cash flow to $5,248 annualy.

Here are my numbers as they currently stand:  Assumes $700 mo for the owner occupied unit than 500, 550 and 350  monthly.

All tenants are on a month to month so I am not locked in with them so if they don't wish to pay their own electric I can move new tenants in.

I have something.  I will message you.

I evaluated a four plex with similar numbers.  At the end of the day I felt the return was not good enough.  Are all the utilities separated out?  This would make a big difference.  Good luck.

With FMNA delayed financing guidelines you would need 20 to 25% down.  You will need to show where the cash came from.  If you used a heloc for the cash they will make you pay that back down to zero when you cashout.  I just did one a few months back.  The bummer is they will not take improvements into consideration for increased value.  They will strictly go by the purchase contract price.  I think you will have problems with borrowed cash.  Find a lender that sells directly to FAnnie and talk to them.

Good morning,   I have a home under contract.  The seller purchased this as a flip and is now selling the home.  It's not a high quality flip so still some work to do.  When I walked through the home he had the water shut off at the street.  I have home inspections in less than a week and the owner says he will turn on the water before the inspection. 

 My questions is why would he do this.  It seems odd and suspicious to me.  Is there a small leak somewhere that he is hoping to hide?  I have never encountered this on a sale that is not foreclosure.  Any experts out there that can offer up some advice on what I should be concerned about.  No signs of water in the basement at this time and he has finished off the basement.

Thanks in advance for your help.  I am pretty much a newbie.  Have 6 homes so far and still learning. 

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