All Forum Posts by: Vashti Green

I'm looking into buying rentals in Syracuse. But I'm unsure how to connect with an agent. 

I am an out of state investor and I am looking for someone reliable, knowledgeable and text friendly (I am able text very often). 

When I say knowledgeable I should clarify, I would like someone who has the ability to provide opinions and rent($) estimates. A agent that is connected to a property manager and/or contractors. 

Hello I'm not sure where to post this. If there is a better place to post this, please let me know

Up until now I have focused on individual 2 to 4 units. 

I would like to build a much larger section(80+ units) multifamily in Baltimore City(Yes,  I'm sure about Baltimore City. I was born and raised here so it doesn't scare me and I understand the population well)

What I need help with is how do I find contractors that do this type of thing. I also need someone to help me understand the process for applying Department of Housing and Community Development multifamily rental financing programs. I have access to cash I am lacking in the ability to understand what needs to be done to plan, qualify and then build.

@Derek Kirkwood As for improvements, I just need to get a new washer/dryer, update the driveway, and put a fan on each stove(maybe not needed, but its important to me), so in total less than $2000. 

I did not fact in utilities, because the renter pays those and as a renter, I currently pay my own.

I agree with adding in another 10%. If I do that, I it becomes a $66 cashflow. But also, this wouldn't happen for at least 3 years, so the 

@Brent Coombs The original posting price was $199,900, it gradually decreased to $149,900. If it was the summer, it would have appraised at $150k. But its the winter in Michigan. I bid high because I knew it would appraise low and that we would have to meet lower, and that by that time I knew that the seller would be getting annoyed and would be more eager to sell. Also, since i dont actually need the house, It felt like a good risk, and it paid off.  I %150 feel that the house is worth $155k if its in the market in the summer, plus the near by school is expanding and the neighbors that they often get cash offers (from developers mostly) to buy up the houses for at least 20% more than what its worth. I don't plan to sell for a while, I just want a smaller rent and better proximity to my husbands job.

I would love to live in the upper(i hate people above my head) but its currently occupied until July, and then we wanted to live in the bottom to use one of the rooms for AirBnB all summer

Here is the our current situation:

21 & 23 married (starting out investing young!)
Currently paying 1060 in rent 

The deal we are hoping to close on:

2 unit home:

Upper Unit - 1br, 1ba Current Rent:600, once we get new tenants, I think I can get 700 or 750

Lower Unit - 2br, 1ba Current Rent: 750. plan to occupy this unit. upon move out could probably get 1050 if I add a washer/dryer

Close to downtown, 2 blocks from VERY nice YMCA, 3 blocks from University

The numbers:

Listing Price: 149,000

Winning Bid: 152,000

Appraisal: 134,000

Final agreement: 134k + 6k seller finance (hand shake) 2 years @5%

5% down + closing costs = 12.3k out of pocket initially

Monthly expenses:

P&I + Insurance + taxes+ PMI = $991/month

sellers financing = $264/month (I'll probably pay $300 to speed things up)

$1255/ month - ($750-33% for vacancy, repairs, other stuff) = -1255 + 500 = $755 out of pocket. (1st two years)

-991 + 500 = 491 next few years

-991 + 500 + 705(67% of 1050)= 214 cash flow ($281 after PMI)

$755 Compared the $1060 I pay in rent currently, I feel like I'm making 305/month. I know I'm really not, but it feels like it. Plus I'm building equity at 23!

This is my first property. So I want some feedback!

So lets say I just got a new 4plex. Do I first advertise like on CL that I am open to Section 8 applicants and with for one to come to me? Or can I contact the HA and have an inspection scheduled even without already having an applicant interested? 

Checking the average rents in the area(I only see 10 listing on craigslist in a 1 mile radius for this zip code), it looks like most 2 br, 1 ba rents hover between 695 and 750. That is my basis for the 725 rent.

I worry that setting my rent too high will hurt our chances of getting tenants. Also, most recent rent prices have been at $500 each which is way low in my opinion.

Do you all know a better way of getting rent price estimates for an area?

 The 1200 includes the more than just the mortagage sorry. I didnt write the clearer.

Expenses: Mortgage+PMI:$810 Ins: $150 Tax: $233 Utils: $150 (your unit) Lawn: $50 PM: $0 (self managed) Repairs @8%: $174 Vac: $174 Cap Ex: $174

Total :1915

I also plan to pay rent as well. (transfer the rent cost from one account into the 'business' account each month. The 700 in rent I will be paying is way less than what i currently pay)

Hi. I'm 23, recent college grad (engineering) and am looking into buying a 4 unit home(each 2 br, 1 ba). I would live in one unit with my husband and rent out the other 3. Building is 140k. My gus says we can get it down, and I always go with my gut. We expect to be able rent the other units at about 725 each. We assume a 1200 mortgage+pmi+taxes+insurance.

We don't currently have much of a savings so we are working on coming up with 10% now. We plan to put down the minimum 3.5% (FHA) and are allotting 2.5% for closing costs and the 3% for fixing a few things in our personal unit to make it a bit nicer for us.

In 2 years we plan to do it all again and grow by adding a duplex and 2 years later adding another duplex and in year 5 finally get to a total of 10 units.

I'm looking for feedback. We are very new to this, but we are serious and are committed. What questions should I be asking myself in relation to the 4 unit building? Also, we are thinking about using a management company and basically pretending to be just one of the tenants. What are the thoughts there?