All Forum Posts by: Tom Vic

Thanks @markw 

Yes, i was a little concerned i over paid for property at first. I was looking at suburbs to get my feet wet before i venture out to the city. Which ikno is a different animal in its self.  Im realizing the prices in the suburbs are over priced to hit a good return. All in all happy with the numbers with me self managing for my first deal. 

Ill keep you in mind when I venture into the city and maybe bounce some questions off you. Thanks for your reply

hello all,

I just fully rented my first multifamily property. It is a side by side ranch style duplex in a suburb of rochester ny. I closed on October 1st, 2015. It took my dad and I 8 months to rehab 2 apartments.( my first mistake that I will talk about later). That's with me working 2 jobs and my dad also working full time. The apartments needed new floors, painting, some new plumbing, counter tops, doors, trim etc. 1st apt was rented back from previous owner after closing for 2 months @ 710 which was negotiated with price of property. That same apt was rented out febuary 15th @ 900 and 2nd apt now June 1st. @ 1095

Here are my numbers:

Purchase price: 117,000

Down payment: 31,036

Insurance :500

Repairs:6631

Inspection: 250

Carrying cost:

Gas/electric: 679.87

Water:57.19

Garbage: 216.23

Mortgage payments(-710 @ 2 months and 900 @ 3.5 months): 2170

Total cash in: 41,541.

Monthly rents: APT 1 $900 & apt 2 @1095.

Total rent 1995

-30 garbage

-25 water

-100 insurance

-120 repairs/ maintain

-100 vac

-970 mort/ taxes

Cash flow of $650 x 12= 7800. 7800/41541= 18.5% ROI

I plan on managing and lawn care on my own if I do end up outsourcing it the number would be:

-199 management {10%}

-66 lawn care

Cash flow +385 x12= 4620 4620/41541 = 11.5 % ROI

So with self managing the ROI is great not so good if I outsource management

Let me kno what think of these numbers!

My biggest mistake was not outsourcing some work. I could of finished this a lot sooner and got a lot more rent and cut down on carrying cost to increase my ROI. I may of also over paid a tad for the property but it's definitely a learning experience. Any advice or thoughts would be appreciated

hello all,

I just fully rented my first multifamily property. It is a side by side ranch style duplex in a suburb of rochester ny. I closed on October 1st, 2015. It took my dad and I 8 months to rehab 2 apartments.( my first mistake that I will talk about later). That's with me working 2 jobs and my dad also working full time. The apartments needed new floors, painting, some new plumbing, counter tops, doors, trim etc. 1st apt was rented back from previous owner after closing for 2 months @ 710 which was negotiated with price of property. That same apt was rented out febuary 15th @ 900 and 2nd apt now June 1st. @ 1095

Here are my numbers: 

Purchase price: 117,000

Down payment: 31,036

Insurance :500

Repairs:6631

Inspection: 250

Carrying cost:

Gas/electric: 679.87

Water:57.19

Garbage: 216.23

Mortgage payments(-710 @ 2 months and 900 @ 3.5 months): 2170

Total cash in: 41,541. 

Monthly rents: APT 1 $900 & apt 2 @1095.

Total rent 1995

-30 garbage

-25 water

-100 insurance 

-120 repairs/ maintain

-100 vac

-970 mort/ taxes

Cash flow of $650 x 12= 7800. 7800/41541= 18.5% ROI

I plan on managing and lawn care on my own if I do end up outsourcing it the number would be: 

-199 management {10%}

-66 lawn care

Cash flow +385 x12= 4620 4620/41541 = 11.5 % ROI

So with self managing the ROI is great not so good if I outsource management

Let me kno what think of these numbers!

My biggest mistake was not outsourcing some work. I could of finished this a lot sooner and got a lot more rent and cut down on carrying cost to increase my ROI. I may of also over paid a tad for the property but it's definitely a learning experience. Any advice or thoughts would be appreciated

Thanks for the input everybody. I'm sure I'll learn a lot from all of you. Thanks again

hello, 

My name is tom. I am 26 years old. I just bought my first duplex in a suburb in Rochester , NY.

I was looking at calculating return on my investment and using 50% rule to determine if I made a good deal. I'm confused and if my math is correct than my return on investment is not adequate enough. Any help we'll be greatly appreciated.

So here's the details

Purchase price 117,000. 3000 in renovations= 120,000

Dp 23,400 (20 %) closing 6600 = $30000 out of pocket

Mortgage including taxes 950 month

Apt 1 rents for $900

Apt 2 rents $1050

My calculation that my income $1950 x .50 =  975 - 950 ( mortgage )= 25. 

Now since my taxes are included in the Mortgage change the calculation?

Thanks for help and any advice will be greatly appreciated. 

Tom