Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Sam Schrimsher

Sam Schrimsher has started 4 posts and replied 29 times.

Post: New member in Rochester NY

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Hey BP community! 

I've actually been lurking the forums for a while but have not yet introduced myself. I'm originally from California but am now living in Rochester NY with my lovely wife and daughter. Would love to start connecting with some folks on BP, and especially with people who live in Rochester.

I've recently ended my previous vocation which was owning and running a landscape company. I'm ready to give real estate a go full time. My plan is to do some fix and flips for income mixed in with a few buy and holds here and there to build up a rental portfolio that produces long term passive income. I've done a lot of research, but of course realize, there will be a lot I end up having to learn the hard way. 

That's the intro. Here's where I'm at right now. I've been driving for $, getting a list together with owners I can direct market. Ideally I want to find my own deals, but am open to buying a good deal off the MLS or through a wholesaler. I'm not gonna lie, trying to direct market and reach out to people, when I barely know what I'm doing feels daunting.

Anyway, thanks for taking the time to read, and I look forward to meeting some new members.

Originally posted by @John Hickey:

@Aqil Dharamsey

Yep I’ve had problems too.

I’ve had numerous mishaps. I changed markets about 2 years ago And I’ve been doing this for a while. But keep at it. As long as you keep your ducks in a row do what your supposed to eventually you will

Find the right people.

I had such a hard time finding good ppl in newburgh I started my own little referral

Program. It worked out well now contractors call me when their not busy to ask if I can find them work.

 Interesting. Could you elaborate on how your referral program worked?

Congrats Shane. Looking forward to seeing the finished product. Where in Rochester is your property located?

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Thanks for the feedback Sherry. What do you attribute that to? I know prices around the country are on the rise in general. Do you suppose that is the reason? Or are there are things going on their with the economy that are causing prices to rise?

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Good points Jay, thank you

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Thanks for the input and advice Steve. Glad to hear you love it there.

We plan on scoping it all out in person before hand. We'll be making a trip out there this Summer. Will plan on checking out the local REIA meetings as well.

Definitely like the idea of being able to get a nice house for under 150k. Where I'm at you're looking at a Million plus for a nice house, which is one of the main reasons we are looking to move, and doing any kind of buy and hold is out of the question in my market right now, this is not an area where rentals cashflow.

Was also seeing that Brighton, Pittsford, and Penfield have excellent schools which is another big draw for us. Good schools for the kid in a very affordable area, that combination does not exist in California.

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Thanks for the feedback Steve. 14-21% vacancy, ouch. Basically what's going on is we're moving out of California soon owing to the high cost of living. Had been researching into some other areas in which to live and build up a buy and hold portfolio. Wife and I liked Rochester as an option.

So I've been trying to analyze some deals, see what the potential is for that area. I don't know the area that well yet. Trulia crime map indicated this property was in a low crime neighborhood. When you say tough neighborhood are you referring to the crime or the quality of the houses? 

Is Rochester on the whole a tough place to cash flow or are there some areas there that work well for buy and hold? 

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Ah, okay regarding the BP link. I'll have to figure out another way to do that. I copied over the key numbers below.

Appreciate your input regarding loopnet, I had a feeling that properties  that linger on loopnet are not a good deal for one reason or another, thanks for confirming. In this case I'm more interested in if my expense numbers seem correct, and if this deal would be good in theory. I'm just getting started and want to practice analyzing some deals before I pull the trigger on anything. Am I including all the necessary expenses? Do any of my figures seem wrong?

Here's the numbers as best as I can figure, would appreciate feedback

Purchase Price: $105,000
Down Pymnt: $21,000
Closing: $2,500

Vacancy: $164.50 (7%)
Capex: $282 (12%)
Garbage: $60 (figured one large can per duplex, is that adequate?)
Mgmt: $235 (10%)
Prop tax: $262.50 (Rochester NY has 3% prop tax)
Repairs: $117.50 (5%)
Water & Sewer: $120 (figured $30mo per unit)
Insurance: $75
P&I: $425.62 (30yr 4.5%)
Misc: $60 ($120 month  for a gardening for 6 month season)
Not including snow removal

$2350 Rent
-$1802.12 Expenses
$547.88 Cashflow (with 20% down)


Looking at the 50% rule you mention it would indicate that I should cash flow approximately $1175 if it was purchased in cash. If I remove the P&I pymt from the expenses I come up with $973.50, maybe the discrepancy is owing to the high 3% property tax rate or some of my other expenses are too high?

Post: 4-plex deal analysis

Sam SchrimsherPosted
  • Rochester, NY
  • Posts 33
  • Votes 4

Hey guys, 

Appreciate it if some folks could provide feedback on my deal analysis. Want to see if i’m on the right track. This is two duplexes. I wasn’t too sure about my capex and repair costs. I think Brandon said around $200 (repairs & capex) for sfh and 8% of gross rent for multifamily. I ended up going 5% repairs, 12% capex because that works out to $400mo~. I figure two duplexes will be around the same as two sfh’s, right?

Also, i figured each duplex could share a large trash can. Is that reasonable or should everybody have their own? 

I figured $120mo for lawn service, but only for 6 months. I didn’t include a snow removal service. Or is that something i should provide with multifamily?

I included a water/sewer guesstimste but did not include gas/electric as it’s my understanding that the tenant typically pays for that.

https://www.biggerpockets.com/buy_and_hold_results/606753.pdf?c=1519067776

http://www.loopnet.com/Listing/1830-Clifford-Ave-Rochester-NY/11382207/