All Forum Posts by: Sarah Albert

@Jason D. Thanks for the advice. We will be adding equity with these repairs. We'd purchase it for around $165K, then put around $24K into it (if we include updating the heating and cooling system). Triplexes nearby have sold from between 178K and 220K, both of which were in better shape than this one. We weren't really planning on doing a BRRRR deal for this because we are very new to real estate investing (this is our first one) and it has been difficult to find comps. Our realtor isn't sure how much the ARV would be since we only have two comparable properties in the area. We were just planning on having this as a buy-and-hold property. Also, we have already been approved for the loan.

@Mike V. thanks for the input! We could get a personal loan from family if it really came down to it. Since we are able to save $1000/month and the P&I is only $700/month we could cover that if the currently rented unit becomes vacant. I think that puts us in a good spot.

@Paul C. you make some good points as well. We will look into our options for contingency plans. We have a credit card we could use and our families would give us a personal loan. Also, the market rents are below average for a renovated version of this triplex. The exact same building next door rents for a lot more. If we increased rents to match those (after renovation, of course) the cash flow would be $750/month. Also, how did you calculate that we’d have 17k in reserves after one year? Thanks!

I didn’t include the $18,000 in the up-front costs because the furnaces and swamp coolers are currently working.

Most of the repairs are open and shut like fixing holes in the wall, replacing doors, etc. However, the roof does leak in one spot so we’ve budgeted $1000 for that repair. The furnaces and swamp coolers are old, too, and would likely need to be replaced within 5 years. Instead of replacing those, it was suggested to us by a contractor that we just install central air. The electrical needs to be updated so this type of work would cost around $18,000.

My fiancé and I are currently in negotiations on a triplex and the inspection revealed some unexpected repairs. With the cost of repairs and the down payment, I’m wondering if we are in danger of over leveraging ourselves. Hopefully the kind people on this forum can lend us some advice. We have $50,000 in cash to spend on this property up front. The down payment plus estimated repairs is about $48,000. That would leave us with $2,000 of savings if anything comes up within the first month. One unit is currently rented, leaving $200 for P&I costs each month. I also work full time and we’ve been able to save $1000/month. The property is a good deal. Our numbers show $400/month cash flow. So should we go for it or is it too risky? Thanks!

Thanks for the input @Jeffrey Romanowski! This one’s a flat tar and gravel roof. We called some companies today for estimates and they estimated anywhere between 5-10k and up to 22k. I suppose we’ll just have to figure out what we want to replace it with and then bring someone out for an estimate once things move along. Thanks again!

I'm looking at purchasing a property that needs a new roof. I'm new to real estate investing and don't have a good idea of how much this will cost. Have any of you repaired a roof recently? What is the average cost for this work in Albuquerque? Also, can tenants live in the property while the roof is being repaired?

Thanks in advance!

Thank you for the recommendations!

Hi, I’m looking for recommendations for a good realtor in Albuquerque, NM. My fiancé and I are looking for multi-family rental properties here. We would prefer to work with someone who invests in multi-family properties as well. Please let me know if you have any recommendations. Thank you!