All Forum Posts by: Russell Fugitt

I'd be up for meeting.  Name a time and place.  Lets see if we can get a few people to meet up in the next couple of weeks.  Any of you in the thread still interested?

As a buy-and-hold investor I wouldn't be able to pay more for the solar panel property because it won't rent for any more than one without solar panels.  Tenants in Phoenix might be slightly different than other parts of the country since the electric bills are so high.  It is still hard to prove to a prospective tenant that the solar panel property is worth one or two hundred dollars more per month than a comparable property.  Maybe someone with more Phoenix experience will have a different opinion.

Thanks for the replies everyone.  I believe I have found someone I can work with on this deal.  

I posted a couple of days ago about buying a 4plex.  I am looking for an agent that has experience in this type of income property.  Please recommend someone in the Phoenix area or send me a message if you are an agent willing to take me on. 

@David Faulkner The things I considered CapEx are:

You are right and I have upped my CapEx figure to 10% which puts me right at $60/month per unit. 2880 per year puts me just above my predicted 2645 guess from above.

My other properties are in a solid B neighborhood.  This building is C maybe C-.  I am sure that it will not be as easy to manage as the rentals that I walk through every year or so.  

Turns out this home has the original roof on it (30 years old) so that will be a required discount if I purchase it.

I am looking for an agent in the area that has any experience with this type of property to see if there are better places to put my money and help me determine a real value.  Let me know if anyone has any recommendations.

@Account Closed I have the rent roll and the expense sheet, but I am checking each of the numbers on it since I don't want a big surprise after purchase.  I will keep you apprised of the situation.  

@VJ R. I can't get it to tag you for some reason.  Lawn Care and Plowing would be maintenance to me.  Here in Arizona the landscape gravel that covers all the lawns keeps that expense down.

Thanks for all of your thoughts.  

@James Syed Thanks for your quick reply!

I will find out more about the insurance it seems too low to me as well.

The property is 30 years old, built in 1986. I split the Maintenance budget at 5% CapEx and 5% Repairs. Should I bump both of those to 10% each?

I have a few SFR's that I have successfully rented out for years. I am considering buying a 4 Plex near me and am hoping someone with more experience will look over my numbers and comment on it.

4 Units all 2 Bed 1 Bath

600/Month Per Bedroom

28800 Gross Rent

2880  Vacancy 10%

2590 Management 10% (I'll plan on managing myself, but want to put the number in)

2600 Water/Sewer/Trash (Water is currently included in rent)

710 Tax

600 Insurance (seems a little low to me, but that is what the owner is currently paying)

1440 Capital Expenditures  5%

1440 Maintenance 5%

12260 Total Expenses

16540 NOI

7.5 % Cap Rate

25% Down $55000 

30 Year loan @ 4.5% $836/month $10032 Debt Service

6508 Income per year 542/month 

11.8% return on my investment of $55000

Does anyone think this building is worth buying?  Would it be worth buying at 200K or 180K?  

Thanks in advance for your comments.

This is exactly the information I was hoping to find when posting on here.   I hadn't thought of that idea yet.   Thanks for the advice Dave!

I have called several QI's and my lawyer, talked to my accountant.  Each call I make gets me a different answer.  

My 2 member LLC is going to sell the only property we own this month. My partner does not want to reinvest his half, I plan on reinvesting my half of the profits in another house.

One QI tells me that I can quit claim the title to 50/50 split between the LLC and my partner. Other QI's mention that the IRS will probably disallow the exchange because there is a holding period that will not be met if I transfer title before getting the property under contract.

I have heard many different opinions and am almost willing to pay the 20K in taxes just to be sure that I don't have a problem.  Has anyone on here had success  (or failure) with a drop and swap removing a partner shortly before a sale?