All Forum Posts by: Travis White

Need some electrical work done and looking for recommendations! Galveston county....Texas City to be exact. 

If you know anyone that is dependable and does good work, please let me know!

Cheers!

Travis

Hello! I'm looking for a painter for my duplex in the Galveston County area. Does anybody have a recommendation/referral?

Thanks!

Here are the terms I can get from the lender I'm talking to..

25% down and we can finance the property on a 5 year note with a 25 year AM. Rates today are hovering around the 5.75% watermark

Strange twist... gave her a call to ask if she was able to send docs to show actual numbers by the end of the day and she explained that tenants are not on lease agreements but rather hand shake month to month understandings. I said that's not going to work for my lender, and she explained it was no problem and that she could get everyone on lease agreements over the weekend. I guess the owner purchased this place in 2016, and did some big renovations to the property over the last two years and added these new tenants at lower rent rates over handshakes.

As long as she successfully comes back to me on Monday with 6 lease agreements, that sort of resolves that strange situation, right? I told her to send me copies of all bills the property has each month, and she said she'll do that... what else should I ask for? Sounds to me like not a lot of strict book keeping is going on in their office... so do I let a deal die because they are poor at office management? Or are there other ways I can do my own due diligence on seeing how this property can potentially operate?

@John Leavelle I reached out and asked for more details on expenses. They came back with $250 per month for water, $40 per month for lawn care and trash pick up, utilities are paid for by tenants, and no flood history. However, after Harvey, it is perhaps always best practice to put on flood insurance for Houston properties. From a 2017 cap rate survey, I'm seeing C area cap rates as 6.5%-7.5%. I've asked for copies of lease agreements and monthly bills, and am waiting for the reply.

@Brent Coombs I'm still going back and forth with my bank. It is my first time to talk with the commercial lending department so I am not sure what the terms are. Hopefully I can get numbers posted up here pretty quickly. 

Thanks for the replies!

Hi everyone

My direct marketing campaign so far has been a like fishing with a net - sometimes the deals that are on offer aren't what I'm used to and I could use some help thinking through the numbers on a 6-plex. Here's what it looks like:

Purchase price = $300k

Rental income = 4 x 1bd/1ba @ $500 , 2 x 2bd/1ba @ $650 = $3300, seller thinks  1bd's can go up to $700 and market research supports that 

Taxes = $200/month

Estimated expenses = 1300/month (10% each for vacancy, CAPEX, and repairs and $200/month for insurance)

NOI = $23k at lower rents, $33k at higher rents

Cash flow = $500 at lower rents, $1300 at high rents

The property is in a C neighborhood that is gentrifying. Many tear downs in the neighborhood that are being replaced with townhomes. What other info can I provide? I'd love any/all feedback/questions/anything on the deal as I'm going to need to make a decision in a couple days. I'd also appreciate any general reading advice for analyzing multiplexes and potentially coming up with a counter offer.   

Thanks so much! I'm off to go dig around BP for more info on multiplex analysis!

@Brent Coombs

- Yeah, I'm sure. I'm in a residency type year w/ my career which means I'm only earning about 60% of what I should be making but that will be over by this time next year. The owner finance deal can be payed off whenever, so I'd be refinancing next year. The deal is through a wholesaler, so conventional financing would take too long to close. And I'm sort of thinking about the owner finance as cheap hard money to get into the property. 

@Derek Dombeck - you could be right, something on the loan numbers aren't lining up. Thanks for the feedback!

Pretty straightforward I guess...I'm just not very familiar with owner finance offers and was hoping some more experienced folks might be able to offer an opinion. Here's the numbers:

Purchase price: $135k

ARV: $190k

Repairs: $20k

Rent: $1500

Owner finance terms are $28k down @ 6.75%, seller reports a monthly PITI of about $1200 but I have it more around $1000.

My thoughts are that CoC isn't great @ 2.85%, neither is cash flow @ $150 after accounting for vacancy, CAPEX, etc. But the equity capture ($82k) is good on the deal. I'd love some feedback....thanks so much!

Can anyone recommend an investor minded RE agent that speaks Vietnamese and could help out on negotiating a direct marketing deal?

Long story short, I've got a tired landlord that is motivated to sell but there is some difficulty in moving forward with the negotiations. Feel free to DM or reply for more info. 

Thanks!

@Greg H. - Thank you, that sums it up in a nutshell.