All Forum Posts by: Tyson Lee

I do not have an LLC for real estate.

It is next in a college town but the studios scare me as well... 

Are you saying there should be a meter for each unit as well as a 10th for the hallways etc? 

I agree Jonathan. I figured my expenses would be a heck of a lot more then what I'm seeing on the statements.  

@Shiva Bhaskar Thank you for the words of support. I'm just trying to get a handle on all this and no matter how many books I read or podcasts I listen to it's still new to me and out of my comfort zone. I feel like I could easily skip over something that I should not have and it would come back to bite me. I appreciate everyones advice.

There is no contract with the company that is currently managing the building and that could be changed any time. 

The taxes are $6,811 which is higher then what I initially thought. 

The units are not metered separately and the current owner pays the utility bill which is over $14k a year. I have listened to a handful of podcasts where people meter each unit separately to add more value. That is something I'll look into and find out how much that may cost. 

The tenants are also all on a year lease but I'm not sure why some say month to month. 

@Dennis M. Thank you that's not something I really gave any thought to. I tried to edit the post but since it is over 10 minutes old I'm not able to. 

@Shiva Bhaskar Thank you. I've written your questions down and honestly didn't think about a contract with property management and the possibility of being stuck with them. 

@Caleb Heimsoth Thanks for the reply. I've only listened to about 100 podcasts and read 5 books so I know I have a lot more to learn. This is a deal I came across and was just curious as to what others thought of it. Thank you for the input. 

Thank you for very much Troy. I agree with you on the utilities. That is a question I have because I was told the tenant pays utilities but then I also noticed the $14k in utilities on the expense sheet. So I was not sure if that was water, trash, etc... Seems like a lot but I don't have anything to compare it to. I also need to find out what the taxes are. Right now I'm trying to get an idea of what questions I need to ask and I want to be informed before asking a bunch of dumb questions that maybe I should already know. I appreciate you taking the time to help inform me on some issues. I am also looking to buy and hold this property. 

* What does DSYR stand for? I'm guessing it has to do with the loan payment?

I am looking at an 18 unit complex. It consists of two buildings that each have 9 units in them. The buildings have an upper level with units and a lower level with units. There are 12 units that consist of 1 bed/1 bath and 6 units that are studio/1 bath. I have attached rent roll that was sent to me as well as expenses. I could purchase the building for $500,000 and there is possible owner financing but I have not gotten into that yet as I try to analyze the deal. A couple expenses that are not on the sheet are a new roof last year for $11,500 in both buildings as well as $4,000 in paint and supplies. The units are older and could use some updating and the building was built in 1964. 

I currently own a single family that is my primary residence and this building would be my first purchase into rental property. I would love to get insight from others on this deal as well as things I need to look for and be aware of. I'm sure there are numbers that I currently do not have that I need to properly analyze this. 

Any guidance and advice is greatly appreciated. Thank you