All Forum Posts by: Stephen Sherwood

Good Morning, 

Has anyone used the USDA loan to rehab a multifamily unit or used it for any other reason?  Is it worth the effort and/or what challenges did you have, thanks!   

Hey, thanks for the info, that makes a lot of sense,    

Hey, thanks for the reply, that’s a good idea, I will reach out to some around the area.  

Looking at a multi family brick building in a town in Kansas.  They have 12 units & it needs total rehab.  Building is empty, foundation is good and they want $100,000.  It has been on market for 275 days and it has 7956 sq ft.  The building has minimal appliances/toilets etc in them.  Has anyone ever rehabbed a whole building & might be able to give me an idea cost?  Looks like apartments are 550ish sq ft other apartments in area renting for $500-600 monthly. End result could be- $6000 monthly rents.  Idk if rehab will be $100,000 or 250,000.  Thanks in advance! 

Hey, just found a 24 unit apartment complex in a Midwest city that was totally redone in 2016 and it has 24 units with 15,172 sq ft total.  All apartments are rented and they want $1,450,000.  Taxes- $10,250 year.  The building is 1.5 miles from a 10,000 student University. They have some 1bd 1bath for $600 rent so if they all rent for $600 x 24= $14,400 (some are more).  Calculator shows $290k down, $6000 monthly payments. With taxes, management, etc estimating payments of $10,000ish monthly. Are those numbers somewhat accurate?  Thanks for your time! 

Thanks for the response, the total cost of all 8 mobile home lots is $200k.  3 are empty, 4 have older mobile homes on them no one lives in but all cleaned out. I’m thinking $8-10k to fix them up to get top pay ($800 monthly rent). The last of the mobile lots has a person living in paying $350 lot fee monthly.  Rehab the older homes to rent for $700-900 monthly and get the $350 monthly so roughly $3150 monthly payments.  Then add 3 new mobile homes on the empty lots in the future.  Could cash flow $1000 monthly until other units added. 

Hey, been in contact with a seller that has 7 total mobile home lots, all have own utilities, 5 lots have old mobile homes on the lot, one was bought and 4 others empty.  He charges $350 lot rent per spot per month.  He wants $200k for all the land and empty mobile homes.  It’s in Colorado so rents are high.  Would you do this deal and rent out the other empty mobile homes after fixing them up?  Getting the $350 lot rents per month ($1750 total) would more than pay for the loan cost then renting the mobile homes out could get $500-750 each.  Thoughts? Thanks for your time everyone.

Hey,

I found lender that’ll lend 100% of cost under $1 million, 5% interest loans so roughly $200,000 is $1073 per month for 30 years. So just wondered if anyone do this to get started finding cash flow properties then refi when you have equity built up.  I’m trying to find what’s wrong with this, if anything besides 5%.  Thanks everyone.

Hey, as a business owner (not real estate yet) you need to talk to a real estate accountant to see what type of corporation you need to start, it depends on how long you want to keep the properties etc. a C-Corp can put more money in your pocket for different situations as the LLC would. My 2 cents!