All Forum Posts by: Tyler Miller

I am looking to get a 2nd lien HELOC on my current primary residence to leverage the equity to acquire other rental properties. I also plan to move out and STR the primary residence. Has anyone done this before and had to disclose this to the bank the HELOC is with? I don't want it to become an issue after the fact. This may vary based on the lender, but I just wanted to see if someone had any insight. Thanks!

@Jonathan Soto What numbers are annual? All my figures listed are monthly.

Hi Everyone!

I am looking at a 16-unit property and wanted to put the details out there. It doesn't seem like it makes sense, but I just want to to make sure I'm not missing anything here. I am fairly new to multifamily investing. Thanks in advance!

Asking Price: $575k

Income:

Gross Rent: $8000 (fully occupied)

Laundry Income: $175

P&I: $3225.53

Vacancy: $817.50 (10%)

CapEx: $408.75 (5%)

Repairs: $817.50 (10%)

Management: $800 (10%)

Taxes: $416.67

Garbage: $90

Water/Sewer: $80

Insurance: $672 (Replacement cost valued at about 900k)

Misc: $355 (Pest Control/Lawn)

This obviously doesn't make sense at asking, 6.6% ROI, ~$500 cashflow. Even at $500k purchase (unlikely), it is $912/mo cashflow ($57/door)

Thoughts?

Originally posted by @Ben Roddey:

Also, are the sites individually metered for water? If not, that's a major bonus that you can pass back the expense to the residents. Have you snaked a couple lateral water/sewer lines to see how they look? You will have to adjust your CAPX number significantly if the lines are in disrepair. What about your electrical panels on the poles going to each home?

This park is in the city limits and Water and Sewer are both city maintained. The tenants pay this directly to the city. I have done significant DD on the electrical panels, etc but I know everything is individually metered and paid directly by the tenants.

@Ben Roddey Thanks for the reply!

Expansion - I recently found out the vacant patch of land is not for sale in this listing. Even if I did buy it, I don't think I could expand it due to the current zoning rules. SO I am now assuming 21 spots total with no expansion.

Expenses - He stated the $250 was lawn care, gravel maintenance when needed, and he also pays Roto Rooter to clean out the sewer lines every quarter as a courtesy, but this is actually not necessary since it is city maintained sewer.

Thanks!

Not yet, but qualifying shouldn't be a problem. I am estimating a 20% down payment which I have the cash for. (~48K)

Hi Everyone,

I am looking at a MH park deal. 21 Total Spaces, 4 of those are currently vacant. New spaces are renting for $200/month, but most of the tenants that have been there for years are paying $130/month. It is in a town with 31k Population and the park is right off a main road in the town, so very good location. Total lot is 2.2 acres. Room for at least 6 more spaces.

Asking price is 264k, but I believe I can get it for 230-240k. The owner is 70 years old and has had the park for about 30 years.

They are currently getting $2450/month for rents, but has the ability to gross $4200/month if fully rented out at the $200/month rent.

They state their expenses are:
$600/year insurance (seems low?) i calculated at $1200
$250/month expenses
500/year property taxes

Other notes: not too many trees on the property, short gravel road (other road is paved and city owned), and park has city water/sewer. I ran my numbers at 1% capex and 5% management. The park seems low maintenance and most of the tenants have been there long-term. 

For the current gross rents im getting a cashflow of $880.64 and if i rented all out at $200/month full capacity, $2525.64 cash flow. ($1685.64 cashflow with 20% vacancy)

This would be my first park, is there anything I seem to be missing? Seem like a good deal? Thanks in advance!

Hi Everyone! What do you think of this 4-Plex deal? Purchase Price: 117k (Will get it cheaper than this-probably around 105-110) Estimated Repair Costs: 10k (May be less.) 20% Down Income: $2275 Vacancy $295.75 (13%) CapEx $227.50 10% HOA $100 Management $227.50 10% Property Taxes $99.42 Repairs $227.50 10% Water & Sewer $100 Insurance $200 P&I estimated at $502.46 NOI $9568 Cash Flow $294.87 CoC ROI 10.29% Building is 31-40 years old I tried to estimate high. My insurance and water/sewer will most likely be less. I will manage it myself for now. I also estimated vacancy and repairs on the high end. Thoughts?

I am interested in units in Houston. If you have any active, please email me. [email protected]