All Forum Posts by: Tiffany U.

@Joe Splitrock Thanks, I'm going to drive the neighborhood and view property tomorrow. I used the bigger pockets 4 square worksheet to analyze the property for myself last night (not my husband's excel sheet). From that I can see that the CoC ROI is slightly over 6% not great but the average of the stockmarket. I may not purchase this property but I will know for sure after I drive the neighborhood and view property tomorrow. Thanks everyone for your insight and help.

@Jeremy England Forgot to add rent is 850 unit.

@Jeremy England The current appraisal is what you are listing as ARV. There are two tenants currently there one has been there for 15 years the other for 8 years. They are in leases until Aug 2019. One side is listed through section 8. The good thing with that is properties have to meet certain criteria and pass inspection yearly to continuously be listed for section 8. I believe that's a plus for me.

@Mike M. I will take a look. Thanks.

@Jeremy England Well that's kind of complicated. My husband and I make decisions together so ultimately he makes the final decision because he's the numbers guy. I say let's do it. One of my concerns is the area home is in does not appreciate well. It cash flows but we've calculated the numbers with appreciation at 1% instead of 3%.

Originally posted by @Dennis M.:

@Tiffany U.

You said “ I ran the numbers”

Real estate is all about numbers

What are your numbers so we can have a better idea of the risk vs reward on this so called deal

Here are the numbers.  I may be forgetting  something but here they are.

Property value $92,487

Asking Price $155,000

Offer cash $89,360 this is modified originally we were thinking of offering 76,900 I believe.  

This is a duplex.  The owner states its cash flow is $18,000 before tax

Property taxes $2129

Insurance $2500 guessing my mentor told me this is a good guess

Owner pays water on the property only one water meter but tenants pay all other utilities.   So I am putting in $2400 a year for water.  

One of my concerns is how this owner just picked a number for the listing price.  I have not gone into the property yet.  So I am hesitant, I don't want to offend with my offer but I have to make the numbers work for me.  

@Christopher Winkler Also in Dallas looking at small multifamily homes and the homes are overpriced. Sellers are asking $60,000 plus over appraised value. I can't make the numbers work on most I see.

@Edwin K. Thanks for the encouragement.

@Joe Villeneuve Please give me your reasons why walking away is best.

@David Zheng I'm still looking but this deal is available and I'm seriously considering.