All Forum Posts by: Rod Smith

Totally understand. If you can sell it for the $55k and then pick up a duplex for that, in essence almost doubling you cashflow, that may be the right move!

Wish you luck!

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Did you finance the property or pay cash? Either way, it appears to be cashflowing well, so why are you considering selling so soon?

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Thanks @Michael Seeker

I agree

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@Aaron Montague

@Steve Babiak

A 30yr term is available. I know cashflow is the name of the game, but for me saving $80 a month does not make up for the extra $25,000 interest I would pay over the additional 10 yrs, not to mention the increase in cashflow once the debt is retired. I know that won't matter if I sell it, but if the property performs as I expect it to, I do not see myself selling it! I am 40, so owning the property free and clear at 61 would give me more flexibility when and if I choose to exit at that time. As I said, I know cashflow is the name of the game, but I think there is something to be said for using credit but minimizing amount of interest paid if you can.

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part of the property #2 breakdown got cut off. Continued below:

Monthly Expenses:
P&I	$261.85
T&I	$158.33
Property mgmt (10% when applicable)	$100.00
Vacancy factor (10%)	$100.00
Maintenance & Repairs	$150.00
Advertising	$11.00
Total Monthly Expenses	$781.18
Monthly Expenses - Debt Service	$519.33

Annual:
Annual Rent	$12,000.00
Annual Expenses	$6,232.00
Annual Expenses (including P&I)	$9,374.20
Net Operating Income (NOI)	$5,768.00
Actual Operating Income	$2,625.80
Cap Rate (NOI/Purchase Price)	16.48%
Cash on Cash Return	10.30%

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Thanks @Patrick L.

Property #1:

· (4) 2 br, 1 1/2 ba, 2 story units

· Purchase price- $90,000

· No immediate renovations needed.

· Rent per unit- $450 (all currently rented)

· Financing- 20 yr fixed @ 5.25% w/ 25% down

See breakdown below:

Purchase Price	$90,000.00
Property Taxes	$1,850.00
Insurance	$1,000.00

Estimated Monthly Rent	$1,800.00

Financing:
Downpayment	$22,500.00
Closing costs	$5,000.00
Renovation costs	$0.00
Cash out of pocket	$27,500.00

Monthly Expenses:
P&I	$454.84
T&I	$237.50
Property mgmt (10% when applicable)	$180.00
Vacancy factor (10%)	$180.00
Maintenance & Repairs (15%)	$270.00
Advertising	$10.00
Total Monthly Expenses	$1,332.34
Monthly Expenses - Debt Service	$877.50

Annual:
Annual Rent	$21,600.00
Annual Expenses	$10,530.00
Annual Expenses (including P&I)	$15,988.08
Net Operating Income (NOI)	$11,070.00
Actual Operating Income	$5,611.92
Cap Rate	12.30%
Cash on Cash Return NOI/C-O-P)	20.41%

Property #2:

· (2) 3 br, 1 ba units

· Purchase Price- $35,000

· Renovations needed- $15,000 (approx.)

· Rent per unit- $500-$550

· Financing- 12 yr fixed @ 7.75% w/30% down

See breakdown below:

Purchase Price	$35,000.00
Property Taxes	$1,000.00
Insurance	$900.00

Estimated Monthly Rent	$1,000.00

Financing:
Downpayment	$10,500.00
Closing costs	$3,000.00
Renovation costs	$12,000.00
Cash out of pocket	$25,500.00

Monthly Expenses:

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@Al Williamson

See if you can see the update I just added.

Thanks

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Good morning BP family. Please take a look at thge 2 properties I am considering. I personally think they are both deals, but can't afford to buy them both at the moment. If I had a private money relationship, that would be different. Take a look at the numbers and tell me which one you would move on:

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@Bryan L. this is a timely post. I am in the middle of negotiations on 2 multi-family properties and I am trying to figure out which is the better deal. Maybe you can help. I think they are both good deals. Tell me if I missed something.

Property #1:

· (4) 2 br, 1 1/2 ba, 2 story units

· Purchase price- $90,000

· No immediate renovations needed.

· Rent per unit- $450 (all currently rented)

· Financing- 20 yr fixed @ 5.25% w/ 25% down

See breakdown below:

Purchase Price	$90,000.00
Property Taxes	$1,850.00
Insurance	$1,000.00

Estimated Monthly Rent	$1,800.00

Financing:
Downpayment	$22,500.00
Closing costs	$5,000.00
Renovation costs	$0.00
Cash out of pocket	$27,500.00

Monthly Expenses:
P&I	$454.84
T&I	$237.50
Property mgmt (10% when applicable)	$180.00
Vacancy factor (10%)	$180.00
Maintenance & Repairs (15%)	$270.00
Advertising	$10.00
Total Monthly Expenses	$1,332.34
Monthly Expenses - Debt Service	$877.50

Annual:
Annual Rent	$21,600.00
Annual Expenses	$10,530.00
Annual Expenses (including P&I)	$15,988.08
Net Operating Income (NOI)	$11,070.00
Actual Operating Income	$5,611.92
Cap Rate	12.30%
Cash on Cash Return NOI/C-O-P)	20.41%

Property #2:

· (2) 3 br, 1 ba units

· Purchase Price- $35,000

· Renovations needed- $15,000 (approx.)

· Rent per unit- $500-$550

· Financing- 12 yr fixed @ 7.75% w/30% down

See breakdown below:

Purchase Price	$35,000.00
Property Taxes	$1,000.00
Insurance	$900.00

Estimated Monthly Rent	$1,000.00

Financing:
Downpayment	$10,500.00
Closing costs	$3,000.00
Renovation costs	$12,000.00
Cash out of pocket	$25,500.00

Monthly Expenses:
P&I

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Thanks all.....Your feedback is greatly appreciated.

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All Forum Posts by: Rod Smith

Rod Smith has started 15 posts and replied 67 times.

Post: My first deal, one year later.

Post: My first deal, one year later.

Post: Please review my deals- Quad vs. Duplex

Post: Please review my deals- Quad vs. Duplex

Post: Please review my deals- Quad vs. Duplex

Post: Please review my deals- Quad vs. Duplex

Post: Please review my deals- Quad vs. Duplex

Post: Please review my deals- Quad vs. Duplex

Post: Tips for Newbies - Multi-Family Properties

Post: How to provide a value add to a tenant without losing your shirt