All Forum Posts by: Spencer Cornelia

@Account Closed utilities are ~$100-$120/month.  This was confirmed this week when I called water, trash, electric, and sewage.  You're really bad at trolling and you're filling this thread with more garbage than Republic Trash Services will be picking up from my 4plex every Tuesday and Sunday.  "I actually just looked at his whole post."  Makes sense since you haven't made a comment offering an inkling of value yet.

@Michael Ealy reading your post now.

@Jay Hinrichs my expense numbers are definitely low. But I'm not using this property for cash flow, it's a long term play. I anticipate it breaking even so you could double the vacancy and repair numbers on my spreadsheet and I still hit my goal. But I'm MUCH in the positive in the long run and on $35k out of pocket, this will be a huge ROI in the long run. (btw - that is the actual property tax number, thank you Vegas for super low prop taxes)

@Matt R. and @Account Closed The seller is doing me a solid by offering seller financing on pretty fair terms and at a discount for a property that isn't really distressed.  He's doing it because he wants the monthly payment of $1,516 because he's retired and didn't want the huge tax number by selling today.  Additionally, if I were to sell for $300k, I would pay $24,000 in closing costs.  I had $15k in purchase closing costs.  And I owe $240k.  So it would be really short sighted to sell and walk with $1,000.

@Casey Powers $50/month for 4 units == $200/month increase. 

To add, the owner spent the past 6 months rehabbing the property so cap ex and repairs should be pretty low the first few years. Deferred maintenance shouldn't be a concern.

@Casey Powers I profited ~$40k day one so I'm fairly confidant I'll profit. I'm not anticipating any cash flow. Will have ~$450/month surplus which will go towards repairs, vacancy, and cap ex. The $8k depreciation will shield me from roughly $2500 in tax from my flips which is 5% return if the property breaks even. Additionally, the rents should increase ~$200/month within 24 months which will be more cash for safety net. I appreciate your input as you actually have value to provide. This property will have headaches but I have the safety nets to handle.

@Frankie Lester I have messaged Terry Lao quite a bit. Please answer my questions. What property did you buy? What was the address? You said you owned a 4plex in Vegas and broke even, I'd like to know the numbers and your experience.

@Jay Hinrichs there are a lot of 4plex in town that are less than ideal, I get that.  The address on this is 1550 Northwind Ct 89110.  There haven't been many sales in the area which doesn't make sense if the tenants are crap, not paying, and causing a lot of headaches.  Given the rapid appreciation of the multi family market in Vegas, it doesn't make sense for these owners to hold 4plex with >$100k of equity if it isn't cash flowing.  Which tells me the tenants in this area aren't as bad as some may postulate.

@Account Closed thanks man.  These are probably 'D' class for some people.  Some may consider them 'C'.  I walked the property during inspection and met the tenants.  These aren't gang members or low class people that live in these.  It's low income but they were nice, family oriented, and pay every month.  There will certainly be tenants here and there that don't pay, but I'm not expecting huge amounts of uncollected rents.  Also, how did it cost you that much to turn the unit?  These units are cheap tile, cheap $200 cabinets from Home Depot, and pretty low cost appliances.  

@Dennis M. thank you. Yes, over time, this thing will be an A+ property given the low down payment and potential for future appreciation and rent increase. Add in the tax benefits of this property which will be a paper loss and it's a huge ROI.

@Matt R. I'm not interested in AirBnB, especially in Las Vegas, but I'm sure that could be an option for some people.

@Remone R. thanks man.  @Account Closed seems like he has experience and probably just bought a bad deal.  Brandon - mind sharing the address and numbers on that property?