All Forum Posts by: Sean Byrd

Income:	$2,551.00	$30,612.00
Mortgage Pay:	$1,450.67	$17,408.04
Vacancy (8%):	$204.08	$2,448.96
Management Fee (10%):	$234.69	$2,816.30
Property Tax:	$541.67	$6,500.00
Total Insurance:	$125.00	$1,500.00
Maintenance Cost:	$583.33	$7,000.00
Other Cost:	$166.67	$2,000.00
Cash Flow:	$-755.11	$-9,061.30
Net Operating Income (NOI):	$695.56	$8,346.74

Fully Occupied at $850

Income:	$3,401.00	$40,812.00
Mortgage Pay:	$1,450.67	$17,408.04
Vacancy (8%):	$272.08	$3,264.96
Management Fee (10%):	$312.89	$3,754.70
Property Tax:	$541.67	$6,500.00
Total Insurance:	$125.00	$1,500.00
Maintenance Cost:	$583.33	$7,000.00
Other Cost:	$166.67	$2,000.00
Cash Flow:	$-51.31	$-615.70
Net Operating Income (NOI):	$1,399.36	$16,792.34

This projects are on the higher side after slight work, I'm not sure how much needs to be done. My inspection is tomorrow and I will find out more after the inspection. I know there is not much cash flow but I just wanted something safe and secure in a nice area. I can cash flow positive if I place some work in the property and get $950.00 then I'm cash flowing $279.89 per month. I wanted to get a lower price after the inspection and see what I can get reduced after learning more in the inspection. VA loan no money down.

Please let me know your thoughts.

0 Votes

Please find below the details for a house hack via VA loan on a 4 unit in Waukesha. Please let me know what you all think.

Listing Price: 359,900

Offered/Agreed Price of: 359,000 w/ $9,900 Seller Credit

Down payment: Zero

Closing cost: $1,500 (EMD)

4 units - 2BD and 1BA - built in 1967

Current Leases until 3/31/2021

Unit 1 = $745.00

Unit 2 = $850.00

Unit 3 = 775.00

Unit 4 = 775.00

Total = 3,125.00

Rentometer - low $839-$941 High

Owner Occupied at $850.00

Income:	$2,551.00	$30,612.00
Mortgage Pay:	$1,450.67	$17,408.04
Vacancy (8%):	$204.08	$2,448.96
Management Fee (10%):	$234.69	$2,816.30
Property Tax:	$541.67	$6,500.00
Total Insurance:	$125.00	$1,500.00
Maintenance Cost:	$583.33	$7,000.00
Other Cost:	$166.67	$2,000.00
Cash Flow:	$-755.11	$-9,061.30
Net Operating Income (NOI):	$695.56	$8,346.74

Fully Occupied at $850

Income:	$3,401.00	$40,812.00
Mortgage Pay:	$1,450.67	$17,408.04
Vacancy (8%):	$272.08	$3,264.96
Management Fee (10%):	$312.89	$3,754.70
Property Tax:	$541.67	$6,500.00
Total Insurance:	$125.00	$1,500.00
Maintenance Cost:	$583.33	$7,000.00
Other Cost:	$166.67	$2,000.00
Cash Flow:	$-51.31	$-615.70
Net Operating Income (NOI):	$1,399.36	$16,792.34

Please let me know your thoughts.

0 Votes

Originally posted by @Cathy Galasso:

I would double check the rental amounts. I am a landlord in the Baltimore City and County area. I have a hard time getting quality tenants for an entire rowhouse for what you are looking for one of the units. I agree Hamden is a hot neighborhood so maybe that is the difference. I just did a quick search on apartments.com in the Hamden area. The high rents are for new apartment complexes. Make sure you are comparing like properties before you invest that amount of money. Who is the Property Management company you are considering?

https://www.apartments.com/ham...

Thank you very much for your assistance and speedy reply. The property is a row home but converted into a triplex. Yes, I agree for the price comparison for the row home they might be different due to the location enabling the higher rent return plus the quality will match the demand. The multi unit row home is completely renovated and A grade quality appliances and permanent fixtures. This property is completely new renovation from foundation, framing, plumbing, insulation, electrical, and HVAC.This is the reason why the purchase price is slightly higher. Lastly I'm currently search for property management company but have two in the barrel. PMC is "RPMI". I'm personal not a specialist in the Baltimore city area and greatly appreciate your expertise. I will evaluate the rental returns and get two more estimations from three more property management companies and utilize apartments.com.

0 Votes

Originally posted by @Will Fraser:

Hi @Sean Byrd, in general when you have a Cash-on-Cash return of 100% and up it's "nothing but net!" If you consider the asset you purchased as a business it brings some clarity in how good it is: the business was purchased for $1,000, will throw off some money along the way, has tax benefits, and then in the end will be worth $485k plus appreciation. Add to this the fact that you won't have to operate it and you've got what sounds to me like a no-brainer!

Well done, Sean!

Thank you very much for your speedy assistance and review. I have been racking this deal in my mind back and forward. It may require an additional 3K for minor expenses like licenses and admin to get it rolling but overall very good I was thinking, Again Thank you for your assistance.

0 Votes

Investment Info:

Small multi-family (3 units) buy & hold investment.

Purchase price: $485,000
Cash invested: $1,000

Zero on Closing plus non closing related expenses

House Hacking

Triplex in Baltimore, MD. Two story row home turned into multi-unit triplex in Hampden. First (2BD/1BA) and next 2 (1BD/1BA) second and third, all units vacant.

My property management company is projecting

Rents for 1BD/1BA $1275 - $1480 and 2BD/1BA $1400 - $1700

Previous owner had listed for 475,000 in 120 days ago. I wanted to offer for $430,000 and my realtor told me "No the seller/listing agent said No that is too low" The property fell out of contract twice already and allegedly was asking price.

I had heard good things about rental properties in Hampden from other members on this forum, data city. other databases and decided that it would be a good investment based on those posts as well as my need for turnkey investment property due to me being stations overseas. . Currently my conservative cash flow is $469.00 from occupied units. Cash on Cash return is 193%. Return rate on property 10%. Turnkey property, due to me being overseas for three next four years and no team back stateside. I was thinking DC or other parts of Maryland like Takoma MD but the crime in Baltimore has me worried about zero appreciation and this property high purchase price plus luxury features. I have to buy from the DMV area.

1 Vote

All Forum Posts by: Sean Byrd

Sean Byrd has started 16 posts and replied 35 times.

Post: 4 unit First time Buyer Advice

Post: Property Analysis 4 unit in Waukesha WI

Post: Expert Advice My First Rental Property (Is this a Good Deal?)

Post: Expert Advice My First Rental Property (Is this a Good Deal?)

Post: Expert Advice My First Rental Property (Is this a Good Deal?)