All Forum Posts by: Stephen Murray

Thank you for all the advice by the way!

Got a little more info from the seller.  The complex was built in the 90's so it is still somewhat recent.  There is a $30/mo trash charge.  The apartments are all metered separately, but the owner pays the water bill for the 1 bedrooms which runs $149/mo total.  That creates $2,148 more in bills, which bring up the totals obviously, but the cap rate is still strong for a "Turnkey Apartment."  He is asking for 195k.  I think I will just throw him an offer for 180k and see what happens.  That creates a 13.6% cap rate without the potential rent raises.  I think that could be attractive if I could find a way to purchase or as a wholesale.  

I could get more money for the downpayment if I needed it.  I have a breakdown of expenses.  It is in a very rural area so taxes and insurance run very low ($1500/year for taxes and $3600/year for insurance).  Current owner says repairs run him about $65 a month on average so I budgeted $1500/year for repairs.  He has a live in tenant who handles vacancies for a small fee on a case by case basis and a maintenance man on call which is way cheaper than what I have allotted for property management which will help with expenses.  I did not budget for vacancies and I am unfamiliar with capex, but I will do the calculations when I get back to a computer.  

Hello BP-

I have recently been talking to a seller about a 9 unit apartment complex in Eastern North Carolina.  It is all one story, with washer dryer units in each unit, and parking directly in front  of each unit, so he has never had trouble renting them and currently has a wait list for tenants.  I am guessing they are extremely attractive to elderly tenants.

Here are the numbers.....

Yearly Rental Income: $37.8k now with undermarket rents.  Potential for a little over $40k

Expenses(insurance, taxes, maint, prop manag):  $11,380 with current rents or $11,650 with raised rents.  Both of these expenses are higher than the expenses reported by seller, and I could also manage the property myself which would cut costs big time.

Returns after expenses:  $26,420 with current rents.  $28,350 with potential rent raises.  Both of those numbers include property management, which might not be needed.

Purchase Price: 195k, but I believe I could get him to come down.  

Question #1.......is this a good deal?  By my calculations it is, but I could obviously be missing something important.

Question #2....Would a commercial lender loan on a deal like this or is it too small of a number?  I could probably put down 20k.  Would trying to find private money instead be smarter?  

Any help or advice on how to find funding would be great.  Thanks.

Thanks a lot for the ideas.  Definitely going to at least put some big signs on it for some advertising and will look into all other options.  Thanks!

I recently purchased two vacant lots in the city of Charlotte.  Does anybody have any creative ideas on how to make some extra money on a vacant lot while it is just sitting there appreciating(hopefully!)?

Hello All-

I have been wholesaling and also investing in cheap buy and holds for the past three years or so and have managed to purchase 5 houses with cash.  I need to start moving away from purchasing these properties with cash and would very much like to start using financing.  What should be my first steps in going about this?  I have heard someone mention portfolio loans?  I have also heard that banks will not finance the type of houses I am looking to purchase which are in the 20k-30k range or purchase a package of properties in that price range.  Any help or advice would be very helpful.  Thank you.  I am located in Charlotte, NC.....

I would like to attend

Thanks for the replies everyone. Very helpful.

What kind of tactics have experienced wholesalers used to attract cash buyers for fix and flips in a smaller country town? My buyers list is not quite where it needs to be yet in that area.

I am a beginner wholesaler in the Charlotte, North Carolina area. I have what I think is a good fix and flip deal, but it is in a small town forty-five minutes west of Charlotte. Any advice would be greatly appreciated.