All Forum Posts by: Account Closed

Welcome to BP! I am amazed at the amount of people under the age of thirty that have an interest in REI. When I was your age I was more concerned with getting good grades so I could get a good paying job. So congratulations on your interest at such a young age.

I will, however, side with @John Woodrich.  Focus on school right now so you can get a W2 job.  The only reason I suggest that is because it's much more difficult to obtain any traditional financing without any income.  With that being said, you can always find something in the field of RE so that you can gain experience.

If I were to start over, I would have saved all my money when I was in the military instead of blowing it all.  Back then there was no internet and definitely nothing like BP.  So the only way to learn was to do it and I didn't.  I'm over 40 now and just now getting started so no matter what you decide to do, you're already ahead of the game.

Again, welcome and best of luck!

I'll be there.

Look on craigslist for someone selling many houses as well. I found one that way. Look for multiple houses that have the same format (ie: contact for deed, seller financing, etc.).

@Bruce Runn Thanks for the tip.  Do you have Kevin's contact info?  I would also be interested in taking a look at that deal you were refering to (for educational purposes).  Might be able to get a better idea how to run an analysis.  By the way, do you use the calculators here on BP that seem to be so popular or do you have a different way of analyzing a deal?

@Bruce Runn I am just doing an excercise to get up to speed and learn. I guess I should have made that more clear in my original post. What is your strategy for getting off market deals? I've been using the MLS for most of the analyzing I've been doing. I did run across an off market deal that turned into a non-deal (if that's a word).

@John Woodrich. I understand how a national forum could be bad for advice.  How would one go about localizing the discussion so that doesn't happen?  As stated earlier, I'm still in the learning phase of this journey and am just trying to get a better handle on how to analyze opportunities.  Thanks for the advice.

@Jim Adrian Thanks for the tip on lawn care.  One of the current tenants gets a discount for lawn care and snow removal so I didn't even think about property maintenance.

@Bruce Runn. Because I'm still in the education phase of this journey I suppose I should have said "opportunity" instead of deal. I met a realtor who has a SFR. Do you have any suggestions on a multifamily realtor?

@Jennifer Rysdam  Thanks.  Trying to stay patient and learn as much as possible.  Just want to get that first deal under contract.

@Jonathan G. Thanks for the input. Being new to the real estate investment industry (still looking for my first property) I was going off percentages Brandon had used in a couple of his webinars. I'll make a note on the CapEx cost and use that from now on.

@Bruce Runn I didn't ask for sugar coating so thanks. Having no experience, I've been analyzing based off numbers and percentages I've either heard on podcasts or tried to be as conservative as I could. The 40 year mortgage was a misprint. The loan is based on a 30 year amort. Same goes with the interest rate. I'm using a VA loan to refinance my primary residence to build up my seed money and since that rate was so low and knowing I would be going with a conventional loan (if I couldn't find a private lender) I wanted to be conservative in that as well. I agree with your statement on the cash on cash return. Since $5000 is low, what would be a good "ballpark" number to initially analyze a deal before putting boot on the ground? $10k? $20k? From the pictures, the property looks pretty clean. It already has long term renters who would like to stay. Does that have an effect on the analysis?

@Tim Swierczek  Good to know about the H2O.  Didn't know that.  I have yet to purchase my first property so I don't know how much closing costs are going to be.  I just went off the numbers in the bp calculator.  What should I be using for a better number if my interest rate is lower?  The purchase cost is the asking price. Since it's been on the market so long (72 days as of today) I figure I could offer less, which would obviously affect my cash flow.  I forgot to include the unit numbers.  Unit 1 & 2: 2 bed 1 bath, 800sf. Unit 3: 1 bed, 1 bath, 700sf.  Also, the property is located on .75 acres next to a stream.

Thanks again for all the input.  I'm still in the learning phase of my journey so you'll have to forgive me.  Just trying to get a handle on analyzing deals.  

Hello fellow BP members.  My name is Sean Dawson, I am a biggerpockets member and have been analyzing multifamily deals in the outer areas of the Twin Cities using the biggerpockets calculators and ran across a triplex that looked promising.  I was hoping to get some feedback on my numbers since I don't live in that area and don't know the market up there.   Is there something I'm missing?  This is one of the only deals I've seen where cashflow isn't negative. 

1968 triplex with 3 car garage on the market for 71 days.

Purchase price: $289,900

Estimated cost of repairs:  $5000

ARV: $335,000 (this is best guess with what comps I was able to dig up)

Closing costs: $2500

Down pmt: 25% ($72,475)

Loan amt: $217,425 amortized over 39 years @ 5% interest

Utilities are paid by tenants so I would only have to worry about trash ($84/mo), insurance ($167/mo).

Maintanance and repairs: $132.10

CapEx: $264.20

Vacancy: $132.10

Property taxes: $279.67

Rental income: $2642.00

Cash flow: $415.75

Cash on cash ROI: $6.24%

I have not walked the property so I can't be certain what the HVAC or roof look like.  The purchase price is also the asking price, which means I could potentially ask less since it's been on the market so long.

Any advice or input would be greatly appreciated in my quest for knowledge and education.  Thank you in advance.