All Forum Posts by: Scott Gordon

Yep totally agree it may be worth keeping the rent the same or slowly increasing it in order to keep the long term tenant.

I haven't talked to anyone involved with the property to this point - so far it's been just my realtor and I. He has the seller's disclosure which looks clean except they don't know when the roof was last replaced so I am guessing it will need replaced soon. If I make an offer, this will be a contingency I put in place - contingent on inspection so that if the roof needs replaced immediately we can work that out in the deal somehow (lower purchase price or seller fixes).
Thanks for the feedback!

Great feedback, thank you! The area of Greensburg as a whole is a good area in my opinion. There's a few pockets that aren't great, but  I'd say this is C+/B- area. Within a mile from a good local college and also within a mile from a hospital - keep going back and forth on whether or not this is good or bad. Within 10 mins from just about anything you need - Walmart, a ton of food options, Home Depot, Lowes, a mall, etc. 

So the 15 year tenant pays 450 and the newer tenant pays 600. Looks like 600 is more on par so I am guessing the current landlord didn't have the heart to raise the older tenant's rent. That is something I would need to consider going into this if I am treating it as a business - figure out how to raise the long term tenants rent, if it's really worth doing so, and if so how can I do it slowly and not all at one time to help them out. Thoughts? 

Hi All!

I've been posting a bit here and there but mainly sitting back and learning from all of you on this site while I've been in the education phase. I'm finally about ready to make the jump into real estate investing and would love to have a few extra sets of eyes on my analysis to see what you guys think about this property I found.

Property Type: Duplex (Top/Bottom)

Total Monthly Rental Income: $1,050

Top tenant is a 15 year tenant

Bottom tenant is shorter term but has been said to keep the bottom apartment spotless and is a great tenant

Purchase Price: $75,000

Rehab money: $5-10k (with existing tenants, will be hard to rehab but my realtor said after repair value isn't much higher than current asking price of $75k, so I can set this aside for roof,water heater, big cap ex expenses on top of my monthly amounts I set aside)

Insurance: $125/month

Taxes: $122/month

Vacancy: 5%

Cap Ex: 10%

Property Management: 10%

After everything above, looks like it'll cash flow $145/month at 6.64% CoC return. At $65k purchase price, CoC ROI goes to 10.62%.

Including link to the report if you guys care to check it out in a more organized format. Thanks so much in advance, looking to get your feedback and motivation to make the dive in if this property makes sense at a particular purchase price point.

https://www.biggerpockets.com/...

@Rob Gillespie thank you for making me feel better 😂 They want $69,900 but $50k makes it a 12% CoC return so I think I may offer that and if the decline, so be it. My realtor said they bought it for $21k in 2008, so maybe they'll be okay with anything at this point. This will be my first offer, so hoping for the best!!!

How do you overcome your doubt when dealing with a property that’s been on the market for a substantial amount of time? i.e. a property has been on the market for 120+ days - I keep wondering, if it was a good deal why would it have stayed on the market for so long?

I am curious if anyone has taken the time to put together a handbook for managing their rental properties. For instance, the first thing to do after closing on a property. How to find tenants. How to handle late rent, deal with unapproved people/pets moving in etc.

I am self aware enough to know that this is my corporate IT self coming out and wanting to have a 'Desk Level Procedure' that I can refer back to at any point to stick to my process and stay on top of things. I also think this would be beneficial to show my wife and walk her through it so she realizes this is something I am treating as a business and not a hobby. This document would include all of the lease documents, screening applications etc. in a central location.

I tried searching for 'Business Plan', 'Processes/Procedures' etc. but nothing really matched what I am looking for. Hopefully I am not the only crazy person and someone else can chime in on how they handled things getting started :)

Thank you!

Thanks for your reply! I was curious about that too, but I was going based off of Brandon's suggestion of 1.5% of purchase price to estimate closing costs. How do you usually estimate?

This is probably a very very dumb oversight on my part, but I ran a report on a house near me and it is showing $46,050 as total cash needed. Why is that? I thought it would just be Down Payment ($10,000), Closing Costs ($1,050), and pre-rental repair costs ($5,000) to make that up which would be $16,050.

Please tell me what I am missing so I can get a grasp on calculating CoC return on my own.

Thank you!

Hi all - looking to buy my first investment property before the end of the year and am curious to hear how everyone is working through the current market conditions and finding good properties seeing that the real estate market is so hot right now.

Have you had success contacting property owners who don’t have their property listed to see if they’d be interested in selling? Does it just come down to finding a good agent? I’m already experiencing a slow agent, it’s been a week and a half and she still hasn’t added me to her list after being told “tomorrow morning” 3 times.