All Forum Posts by: Gaspare U.

I've never flipped a home before and just curious as these would be my concerns.

1. What's the avg DOM for a $500-600k house?

2. How confident are you with that budget hitting the mark and time frame?

3. How much staying power do you have before you break even? (meaning if you sold it $550k, and on budget, how many months can you hold it while paying recurring costs (taxes, utilities, insurance, landscape, etc.).

-Gaspare

I will only seriously consider a multi-fam with separate utilities as an absentee owner. My father owned a 6 Fam in NY and we lived on the same block. The amount of complaints regarding heat (too hot, too cold), not enough hot water or people just leaving the water running for no reason was enough for me to realize growing up that I will no matter what make tenants pay for their utilities.

Currently we have a 3 retail store strip, each pays their own heating but the water is split 3 ways evenly. We also own a 2 Fam where they pay their own gas but I have the water bill broken up as a point/tiered system. An adult counts as 2 pts and a child 0-18 counts as 1 point. So if Apart 1 has 2 Adults and 1 Child they are 5 points. Apart 2 has 1 Adult and 3 Children that is 4 points. If the water bill is $90, I pay the water and charge them Apart 1 $50, Apart 2 $40.

From my experience the water meter fee can cost MORE than the actual water so may not be worth it. Adding individual HVAC will depend on how the apartment plumbing/ducts are laid out. 

Hope this helps.

@John Joyce who pays utilities (gas, water, hot water)?

@Brianne Leichliter I hope it’s not rude to ask, but what are the term on the finance? % down, rate and term.

Please and thank you!

Gaspare

@Bjorn Ahlblad thanks for the reply! Yes the taxes are a killer up here and SALT is making it worse.Being new to BigPockets can someone recommend a link to a very good/solid analysis? I’m not saying the opportunity of a lifetime but a chance that was very good and a no brainer?

Thanks,

Gaspare

Check out this home at Realtor.com

$730,800 ($750k was listing price, I would have paid $700k)

6 beds · 6 baths

50 S Union Ave, Cranford

https://b1iw.app.link/URhZUtpucZ

The original listing is gone now. But I am wondering if I let a good opportunity pass.

Here are some basic details:

1. Long term tenants 12 years and 7 years. Both apartments were maintained very very nice.

2. ALL utilities were separate (water, electric, gas)

3. Each apartment was exactly the same but 100% separate. Even the garage had a wall between them.

4. There are NOT a lot of duplex that come to the market in this area (most are under and over layouts not left and right)

5. The rents were under value. From comps 3k per month was the norm. I would have raised the rents to 2500 due to the fact that I really liked the way the tenants maintained the apartments.

6. Landscape was a bit much and due to corner lot with sidewalk a lot of snow removal (which currently is a landlord responsibility.

7. Most if not all major expenses looked good (roof, furnace, HW heater, appliances etc.

8. The property was close to my home so I would not need a property manager but would utilize a handyman to correct and maintain normal issues.

9. Would need a loan, perhaps do a 1031 exchange on a previous home or come up with 200k down payment plus closing costs.

10. Misc Expenses: landscape/snow removal $1500 per year, garbage $600, taxes $17,900. I believe that was it in regards to LL responsibilities.

What do you guys/gals think? At 700k and 60k income was/is the CAP (5.7%) too low? Any suggestions on financing? I currently only utilize traditional 15 or 30 year terms.

Thanks in advance!

Gaspare