All Forum Posts by: Sixto Velasco

I’m new to investing in multi-family commercial properties. I have a couple of single family réstale properties and looking to step up into MF space. Need help evaluating an opportunity to invest in 3 duplexes, 6 units total in downtown Pensacola, FL. Developer build brand new houses on same street as the duplexes mentioned below.

What do you think??

Price= $520k

NOI = $41,770

Cap Rate = 8%

Annual Rent = $55,260

Insurance = $2594

Taxes = $2607

Management Fee = $4421

Reserves = $1658

Maintenance = $2210

Duplex # 1 - 2bed/1bath - 1175sqft - Renovated

Annual Rent = $19,020

Insurance = $950

Taxes = $881

Management Fee = $1522

Reserves = $571

Maintenance = $761

NOI = $14,336

Duplex # 2 - 2bed/1bath - 1175sqft - Renovated

Annual Rent = $20,640

Insurance = $650

Taxes = $840

Management Fee = $1651

Reserves = $619

Maintenance = $826

NOI = $16,054

Duplex # 3 - 2bed/1bath - 1175sqft - New roof in 2yr

Annual Rent = $15,600

Insurance = $994

Taxes = $886

Management Fee = $1248

Reserves = $468

Maintenance = $761

NOI = $11,380

@Mr Davido thanks for the insight. I hadn’t considered how much more I could make from other investments vs. how much I could save by paying off the house early.

Seems like I could benefit more from other investment avenues, as opposed to sinking more into the principle.

Thanks for the info.

@Joe Villeneuve thanks for your valuable input. I see now that paying it off early is not as beneficial as I thought I would be. Saving the extra money and using it towards other investments is making much more sense now.

I have a property I purchased for $100k with $3500 down payment in 2014. It is generating approximately $250 in positive cash flow every month. Today it Is worth approximately $150k-$165k.

I’ve been paying an additional $500 toward principal and if I continue to do so, my house will be paid off by 2027, saving me over $40k in interest by paying it off in 13yrs instead of 30yrs.

My questions below:

- Is it a good strategy to pay extra towards my principal to save money on interest over the life of the loan?

- How do you determine best course of action of holding the property for cash flow vs selling?

Any feedback would be great!

Thanks,

Sixto