All Forum Posts by: Tammy Wiggins

What's the Binder Method you referred to?

@Carl Flint  These properties are NOT producing $200 or even $100 cash flow when I run the numbers.  These buildings are 100+years....lot's of character, plaster, some knob and tube (which I stay away from).  Our one duplex is fantastic and very unique.  2 story townhome style with poured foundation.  The basements are private to each unit.  Most MF's in St. Louis are stone walls, dark dingy, and leak.  I know the city and I know the path the government takes.  We have many businesses that have fled the city, yet there are millennials on up who are enthralled with the idea of living there.  I get it....there's great restaurants, bars, specialty shops all within walking distances.  So much character also.  It should be a major metropolitan thriving city.  I don't see it happening in my lifetime.  With that said, homes are also flying off the shelves.  I'm also interested in rehabbing smaller homes and flipping.  However, I'm the type who wants to add value and improve the neighborhoods I work in rentals or flips.  I'm ready to pull the trigger but just don't feel there's any possibilities for me.  I am working on setting up meetings with other investor realtors and investment clubs/groups.  It's a process.  Not sure what is the best route for me to go at my age and starting so late.  Trying to figure that out also.

@Michael P. I'm just starting out in the investing world. I've been utilizing the MLS to practice analyzing properties. However, the MF's are flying off the shelf even though the numbers don't seem to add up? I have been sigining up with wholesalers but once in a while a hot property comes up that everyone wants or it's in an area I'm not interested in being at. Still I don't get much, but I keep looking. I know I need to work on prospecting myself. Right now I'm getting overwhelmed and wonder if I'm over analyzing or just too late in the game at my age. I'm hitting 56 right now so I need to determine what the best strategy is for us versus what a 20 or 30 something might due. In 30 years I'll be in my 80's....I'm not interested in appreciation that's left behind to my kids. I'm looking for some extra freedom to enjoy life while I can. We've invested a lot into our kids now it's time for momma and poppa to reap the rewards while we're still walking upright....LOL

@Jamie Derasmo. Thanks Jamie. On to what may be a stupid question....Should I be using the current rental rate a property is or was getting or should I be analyzing based on the anticipated rental based on similar comps?

@Stephen Mackivitch.  I know...It's very frustrating.  I'm wondering if I should switch gears and look into doing the brrr method in North County or possibly looking into Section 8 opportunities.  I love the city homes and feel many landlords do not commit to adding value to the community.  There's so many units I'd love to get my hands on, clean them up, and make them shine again but it has to be profitable also.  I want my properties to be the best and most desirable.  I'd really like some rehab opportunities, but I don't have a crew together and my husband and I are getting to old for a lot of the work.  We don't mind getting our hands dirty, but we move slow and that's what you can't do when rehabbing.  Time is money!  It's even harder to find anything in St. Charles County.  The first time home buyer market has been hot and anything that's been updated in the older neighborhoods are HOT!  That's were I'd like to be for rehabbing.  Good luck to you also!

@Bob Metry. Thanks!

@Joe Villeneuve   Thanks...I totally agree!  I was just wondering if there is something I'm missing?  I make sure I adjust for the increase in taxes, figure 7% for capital and maintenance expenses, 10% property management fee (which seems to be the going rate in St. Louis) and figure a 4% 30 year loan.  Depending on condition of unit I calculate with the median price.  I was just wondering is there something everyone else knows that I don't?  Again, these retail properties, but unless it's a bunch of house hackers, which is what I had my son do, I don't understand why these are getting snatched up.  These are old places, even if they do look good cosmetically.  I'm very particular with types of systems, electric, and plumbing.  Updates or fixes could get quite costly.  I also manage myself right now, but don't want to do that forever.  I'm 56 and just got into the game.  Time is not on my side.  It's very frustrating since I'm am ready to go.

What is considered a good cap rate for multi-family units in St. Louis.  I'm looking at 2 and 4 unit properties.  I can't get anything to hit the 8% when I calculate even when I leave out property management fees of 10%.  I eventually do not want to manage my properties, but an able right now.

I'm new and need some advice. I'm analyzing properties like crazy. I base it on always having a loan at 4% for 30 years. I'm looking in the St. Louis market near a unit I already own. I am a realtor so I am checking sales for the areas I'm analyzing. However, none of them tend to work out nor leave me with $200 cash flow per unit. I can adjust the price of the unit down, however, these units seem to be going at the list or near. I'm talking 2 unit MF's, 2 beds/1 bath, over under. Depending on location and updates they can rent from $800-$1300. The high end would be in the prime locations/streets/neighborhoods. I've also adjusted the monthly rental to get it to work. However, I'd rather error on the lower side. The majority of comps I find typically come in at 90-100% of the list price. Based on my calculations, I'm pretty positive my offers would not be accepted based on my analyses. I am utilizing the BP rental tool. I'm using all of the expense numbers I currently incur for my unit. What am I not getting? These are old buildings, there could be some high capital expenditures down the road. I also increase the tax amount since that will go up after the sale. Some of these units are being assessed at an amount less than what the original owners paid for it. Any advice, suggestions, information is greatly appreciated. I'm getting very frustrated and overwhelmed with the process. Keep in mind, at this point, I am just looking at MLS properties. I still need to work thru how to find opportunities off market.

Thanks @Julie Hartman.  I'll review the lease so I can reference. Still green in this area and I always want to be respectful of the tenants rights.  However, I felt this would be a non issue as owner and did research some info on the landlords rights in this area.  I'm hoping to find an official notification form as there wasn't one in the BP lease documents.  Thanks again!

@Julie Hartman