All Forum Posts by: Sean Kuhn

Thomas I lend on lending club, I like to think I helped finance your rental :) My only concern is the interest rates are so high on that site, are you cash flow positive?

Green Flags: Like @Kerry Edwards said surface mold, I love love love surface mold. Scares so many people away and really is an easy fix.

Red Flags Major foundation and structural problems. Not usually easy fixes

I failed at several businesses before I found my calling in real estate. I learned a lot each time though.

@Kenneth Goldman

Kenneth where have you been seeing these guys come in? I'm just south of you in Minooka and I haven't seen them here. I know for sure they're in Joliet and Plainfield though. One house in Plainfield was listed for 70k, we bid second highest at 94k and they ended up buying for 115k. ARV was 135k tops and it needed 20k worth of work. I don't know how they did it.

@Daniel Miller I believe your numbers are spot on. I like the 650 a unit annually and 10 percent vacancy loss. I believe those are very accurate. I ended up offering 240k with 100k down and an interest only loan at fixed 5 percent for 5 years with a balloon payment of 140k in full at the end. Those numbers work for me well and we'll see what happens. Not a grand slam, but I like it.

@Aaron Mazzrillo is right. If you know a lawyer get him to type up a letter on fancy paper with cease and desist and some other law mumbo jumbo. People get scared of that. Do that and you're idea of being there as a buffer when a tenant comes to look is a great idea and will work the best.

Yeah the math doesn't lie I guess. Researching other multi families in my area shows this one is on the low end of the scale. CAPS for others would be in the 6 to 9 percent. Some were over ten but were way out in the boonies or war zones.

Chris my name pull down isn't working. I never knew the difference between CAP and ROI and thanks for bringing it up! However I would be paying cash for the property so its still correct but I need to call it CAP not ROI.

Using 75% occupancy I came up with the similar 4 percent. Honestly I'm okay with the higher taxes as it's in a really great area. Surrounded by SFH and I like that. But I can't accept a higher price too.

I've only purchased single family homes thus far and I am not experienced in multis. Do they have similar ROI as SFH? I have one 4 unit I'm looking at. Its in a great area, which is important to me. Its solid brick and needs very little work. Its a three 2/1 and one 1/1. My only problem is taxes seem somewhat high. 9300 a year. Gross annual income is 36,840. Expenses are taxes, insurance, utilities, and garbage which nets income down to 20,535.38. The listing price is a little high in my opinion. 285k. If I did the math right that brings my ROI to 7.2%? My SFH get 10-12% easy and I'm wondering if this is typical to get lower returns in multifamily? For me personally I would still accept the lower rate as I believe the relative maintenance is lower on the Multi and higher on SFH which would lower my rates on my SFH and raise it on my Multi over time?

Questions? Thoughts? Am I wrong on everything here as I'm still new to this.