All Forum Posts by: Sam Collins

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Good Morning BP community,

I am trying to analyze a duplex that is right by my house to see if it is worth buying. I have attached the BP rental calculator report to this post. I will be self managing the property but i included the 10% management fee just incase i ever decide to let a property manager take over. Median rent in the area for a 3/2 is $1400. i set my numbers at $1200 mainly because i wasnt sure if duplexes rent for less than a stand alone house. This will be my first multifamily to submit an offer on so any help would be appreciated.

Their asking price is at $330K. i offered $230K and they counter offered at $285K bottom dollar. im thinking i can still get them to come down though.

heres the important details:

285K purchase price

- $235 cash flow

- 3.69% CoC ROI

- Purchase Cap 5.23%

250K purchase price 

- $357 cash flow

- 6.35% CoC ROI

- Purchase cap 5.95%

i would cash out refi with a fixed rate. the returns you will get will be far greater than the record low interest rates the banks are offering. i just refied my personal residence and pulled 146K out of it at 1.78% 30 year. 

putting in my first offer on investment properties. Even though it was turned down!

Good Morning BP,

I want to run a current idea by all of you.

I am wanting to find a way to provide my wife a "W2" style of income. The reason I am wanting this is because I want her to have the financial history behind her for a conventional loan when I hit my 10 properties. Currently she is a stay at home mother. My plan is to open a LLC in my name for a property management company. I will then hire my wife as a manager and pay her 10% of the gross rent of the properties in my portfolio.

Has anyone done this or even herd of this? Not sure how it will work out

Hello BP,

I am currently looking to see who all you recommend as far as CPA and Attorney here in Houston Texas. My current CPA is retiring and I will be needing a new one. As far as the Attorney I need to get one.

Thank you

@Mike D'Arrigo

Nothing on the disclosures. It was not a rental property to start with. He built it for his mother and sister to live in. Mother passed away and sister moved out. Was only lived in for 3 years. All I can tell is it is needing paint and patches on the nail holes. I have walked property 2 times and spent over 2 hours looking for things today. Sellers agent disclosed that he hasn't even received an offer on the property since listed. From the looks the property is in excellent condition. No stains on the carpet or damage to anything. Considering duration on the market I am considering dropping my offer down to 230-240k lowest rent in the area is around 1100 highest is around 1650. But that is for SFH. Not sure how much that changes for duplexes. Apartments rent for 1200-1450 in my area and stay constantly leased. Sellers agent also is terrible. My agent called for the last 2 days and finally received a text from her saying we could view property. Listing agent is a close family member of the owner so I'm sure it's low on her list. Water, sewer, power, and gas are all separate metered from A unit to B unit.

@Mason Hickman

Yes it's in a very rural area. Also the MLS has it listed as a single family home. I'm assuming that's probably 2 main reasons why it's been on so long.

@Mason Hickman

I ran it through the calculators.

At a purchase price of 280k it will cash flow $365 a month. I was just wondering if anyone else would purchase or what would be around the offer they submit. Also the 2020 taxes were at 2100 annual. I’m assuming I need to base my taxes off the 280K purchase price at the current tax rate of 2.6938?

Looking to get some advice from everyone.

I am currently looking at this duplex built in 2014.

1,765 per unit

Each unit is 3 bed 2.5 bath. Mirror image of each other.

Sellers asking price: $330,000

Annual propert tax: $2,616

Rehab needed: $5,000 (just paint)

Average area rent: $1,000-1,400

Thinking to set my rent at $1,100-1,200 monthly

Has been on the market for 364 days. Did a walk through with his realtor today. Property is is excellent condition. Brand new exterior paint. Has separate power meters, separate water meters, and separate gas meters.

I am thinking on offering at $280,000 and would just like to get some feedback. Numbers in the picture is quoted off the sellers asking price with 20% down and 4% interest rate.

Thank you!

@Bill F. @Joe Splitrock thank you. Seems to me cash would be the easiest way to go about this transaction so that’s how we will be doing it. Thank you