All Forum Posts by: William J Stratton Jr.

James,

Thank you so much for all the information - this is a huge help - wow.

I am new to this so I am definitely aware that I am not sure what I am doing exactly.

Ok - what would be the best book to read to learn all this including the different metrics (IRR,ROI, COC)?

Where did you get the APOD sheet? Can you send me the link? I can't find it. 

Do you pay yourself 10% each month and then right them off on your taxes as a business expense if you do the work? For example - if i do the work and pay myself 10% a month $150 for property management then can i write this $150 a month off on my taxes? 

What do you mean i should not include a mortgage payment for net operating income? Do you mean i should not county my monthly mortgage payment as an expense to determine my net income?

Where did you get the insurance - real estate numbers of 1160 and 3000? 

Yes the building is zoned and permitted for rent. 

Thank you Jim for you help!

William 

Hey Guys, 

I just purchased a triplex for 127,000 - 30 year mortgage.

I am trying to figure out what i should be making each month off this house? I heard that if you make 10 or 20% of the amount you rent for per month then you are doing well. Can someone tell me if this is true or if there is other ways in which i should be viewing the profit on this house?  

Here are my numbers:

$127,000 purchase price

$30 year mortgage 

Monthly Expenses:

$1010.30 (mortgage payment of 577.50 and property taxes/homeowners insurance of 346.73)

$150 Water (Calculated using yearly amount) 

$215.41 Heat (calculated using yearly amount) 

$20 Garbage 

= $1395.71

Monthly Income:

$700 (Upstairs)

$800 (Downstairs)

Basement has not been rented out yet - needs updating first (maybe $5,000 to $8,000)

= $1500

Thank you all for the help - this is a great community!

William 

Zachary - thank you so much for this reply i appreciate it more than you know. You are my first reply and it was helping - this makes me already like this BP community as a whole. Seller financing is when they are basically the bank and i pay them a monthly figure for a 30 year period? If this is correct - i have thought of it but i don't think they would want to do this as they are both in their mid 70's i believe. I think they want to get the money and go to a retirement community. 

Why do you think i should do the Hard-money/Private money combo first instant of going directly to the bank for the loan? What is the benefit for me and the current owners of doing this? I am going to try and ask them very soon why they are wanting to sell as well as the price they want to sell for.  

Thank you!!!

William 

Hello everyone,

My name is William. Podcasts have been my life for the past few years and thankfully so as I found BP's. I am wanting to get into real estate and hoping for some advice from the BP's group.

Here is my situation:

I have been looking for a very nice duplex to purchase - I want to live in half. I finally found one after a years worth of research. The owners currently live in the duplex and want to sell it and move once the one owners mother passes. I told them I would rent the other half of the duplex from them until his mother passed and they are ready to move - his mother is currently 100.

I am trying to figure a few things out.

First - does anyone have any (creative ideas) of how I could get them to sell now?

I thought about asking them about selling now - having me take over ownership and of course full responsibility - at this point I would have them pay me rent until they decide to move out. What do you think about this idea? Do you have any other (ideas/sale pitches) that I could use that would be in the best interest for both me and the current owners?

Also - this would be my first home - what particular loan option would be best for me to look into as a first time home buyer - purchasing a duplex while living in half? I have already been pre-approved for an FHA loan.

I am trying to put the least amount of money down - what loan or tactic would you recommend me researching? I heard that you want to try and get your property appraised for 20% more than the asking price so you do not have to put your own money down - does this theory still hold?

Thanks for all the help- any thoughts or links would be much appreciated.

William