All Forum Posts by: Thomas Brady

Hey Daniel, 

I am actually a licensed broker in NC so I'm pretty familiar with market Cap rates and it looks pretty good. 

I would probably refinance at the end of the 10 year period, unless there is more growth than I an anticipating. 

Thanks for giving me some other factors to consider on the deal! 

Hey BP I have another investment property that I would love some insight on. 

I recently posted about an Eightplex I was interested in and received some great feedback. There is one more deal I've been looking at and I'd love some more help on it. 

Here are the numbers: 

sixplex in hickory NC 

Price: $160,000

Gross monthly Rents: $3,050 (definite possibility to raise rents by about $25-50 each) 

Expenses: (50% rule for now): 1,525 

NOI: 1,525

Cap: 9.5%

Debt service: 25% down, financing 120k @ 6% amortized over 20 years, with a 10 year balloon. 

$860/month 

Net monthly profit: $665

Cash on Cash: 19.95%

Any thoughts on this deal? Thanks! 

Thanks Everyone! 

I will re-evaluate this deal and make an offer that will definitely meet my needs, I'd rather have no deal than a so so deal anyway. 

The market in Hickory isn't very expensive. Even a really nice 1 bed 1 bath would go for about 

$600-750. I also think the rents are a bit lower than they could be. Apartment next door is renting out for about $450 each unit, so this one could be poorly managed. I forgot to mention in the above post that they are all 1 bed 1 bath units. 

What's up BP! 

I have found a very interesting deal that I would love some experienced investors to weigh in on. 

The deal is as follows: 

Eightplex in Hickory NC

Asking price $210,000 (trying to get it down to 150-170k, but am using 210k for the numbers) 

Gross rents: $2,900/month or $34,800/year (Between $330-400 a door) 

Tenants pay all utilities

I am requesting a 1040 schedule E and the T12's from the seller, but for now am forced to use the 50% rule. using that, operating expenses are $17,400

NOI: $17,400

Cap: 8.28 

Debt Service: $8,700

Equity Dividend rate: 16.5% 

The area isn't great or terrible, probably a C or C+ area. I don't see too much market growth in the area based on historical data, however it is right next to Lenoir Rhyne university which enrolls around 2,000 students per year. 

What do you investors think of the deal at $210,000? I am going to try to get it down to at least 180k, but if it were bought right now, what are your thoughts? Let me know if you need any more info. 

Thanks Everybody! 

Hey, Thanks for the help!

They are actually moving from Hickory to Charlotte so I know the area very well. I'm definitely not concerned with giving them quality service since this will be my primary market, I was more concerned that the relocation company would have the final say of who they could use as an agent. I have heard that it is ultimately up to the people moving, although the company may not pay the agent and the sellers would have to pay. (not looking to do that, so I will try to get approved) But when it comes to helping them buy a new home I don't know how much control the relo company would have. They couldn't withhold paying the agent since it would be coming from the seller anyway. I'm just trying to get my ducks in a row before they put their house up and start looking for a new one. 

Thanks again Chris! 

Hello, 

my parents are going to move in about 6 months due to relocation of my dad's position in the company. I am just about to get my license and really want to either sell their home or help them find their new house. The problem is that it looks like my dad's company uses a relocation package with chose real estate agents to use. My question is, can I still either sell their home or sell them a home since they are supposed to use the relocation package? Are there ways to get around this? because it would be a nice commission and a good way to get my foot in the door in real estate. 

Any advice would be greatly appreciated! 

-Tom 

Hey BP,

I recently ran across an apartment complex that peaked my interest, and I would love some advice on this deal. (I am not an expert on larger MF, but do have one duplex right now so I'm not completely inept haha) 

it is a 10 unit building, each unit is 2/1 

Price is $300,000

Rents are $500/unit, so 5k per month (Rents could definitely be raised at least $50/month) 

The seller is going to send me the 1040 schedule E so I will have a better grasp on the actual expenses soon, but for now I am using the 50% rule and adding an additional 5% for good measure. 

With 25% down and all the numbers in, I am getting a NOI of $950-1000/ month.

Just curious as to how this deal looks to more experienced investors? 

Thanks! 

Thanks everybody! I appreciate all the support. 

And to those who were asking, it is off of Lawyers road. 

Thanks everybody! I will definitely keep everyone posted on how things go with it.