 Price check (by David [NC]) Sep 21, 2017 3:46 PM
 Price check (by NE [PA]) Sep 21, 2017 4:18 PM
Price check (by NE [PA]) Sep 21, 2017 4:18 PM
Price check (by Kyle [IN]) Sep 21, 2017 5:18 PM
Price check (by David [NC]) Sep 21, 2017 6:22 PM
Price check (by NE [PA]) Sep 21, 2017 6:37 PM
Price check (by S i d [MO]) Sep 22, 2017 9:27 AM
Price check (by Kurt [MI]) Sep 27, 2017 4:49 PM
Price check (by David [NC]) Posted on: Sep 21, 2017 3:46 PM
Message:
It's time to play what would you pay for this property!?!?!?
Vanna, show our audience our first property . . ..
Well Pat the first property is located in small town North Carolina and is a set of two duplexes - brick, new HVAC and roofs, built in 1973. Each space is 2 bed 1 bath. Total rent brought in is 1800 for the 4 units. All appliances remain. Tax Value is 158K. Seller asking 180K
I'd like everyone's thoughts on what they would offer the seller and why.
--8.42.xxx.x |
Price check (by NE [PA]) Posted on: Sep 21, 2017 4:18 PM
Message:
So your rents total $1,800 ($450 per unit) or $1,800 for each unit? --74.37.x.xxx |
Price check (by NE [PA]) Posted on: Sep 21, 2017 4:18 PM
Message:
All in all, not enough info. Need all expenses too. --74.37.x.xxx |
Price check (by Kyle [IN]) Posted on: Sep 21, 2017 5:18 PM
Message:
I don't know your area or target rate of return, but I would try to pay about $70k for those rents. Maybe more if I thought I could increase them without a big capital expense. --73.102.xxx.xx |
Price check (by David [NC]) Posted on: Sep 21, 2017 6:22 PM
Message:
@NE from PA = Total from all 4 units is $1800 a month. The seller says $420 for 2 units and $480 each for the other two units. Seller says long term rentals and good rental history. Sure not enough info but play along anyway. I won't make you buy it. :-)
@Kyle I doubt the seller would go for 70K. I'd tell you what the tax records show but that would spoil some of the fun.
I'd say they are bit under market rent and could be moved up to 500 to 525.
--8.42.xxx.x |
Price check (by NE [PA]) Posted on: Sep 21, 2017 6:37 PM
Message:
Playing along, I would assume that this is a realtor listing and these would be the expenses:
1800 gross rents
-270 15% vm
-75 insurance
-208 taxes guessing for a list price that high if it was my area at $2,500 a year.
- 100 water/sewer
- 740 cf ($185/unit)
= $407 to support mortgage of $62,900 for 20 years at 4.75% if I got a loan and investor DP or roughly $83,800 if I put 25% down for the same $62,900 loan.
So between $62,900 and $83,900 if it was up and running and didn't need ANYTHING.
That's 15-20k per unit. For rents that low, that's not a bad all in price.
What would I start at? Hahaha, now that's a WHOLE different story. --74.37.x.xxx |
Price check (by S i d [MO]) Posted on: Sep 22, 2017 9:27 AM
Message:
I'd offer $90,000 and see if they bite. $1800 rents would be 2%, which is where I START looking. I'd have to discount off the rent any utilities, lawn care, or other "provided" goodies. To me, rent is based on the price paid to live in the unit with nothing else added in. If I'm paying $40 for water and charge the tenant $40, that's not Rent (although I term is as such in the lease)...it's just me shuffling money as the middle man.
Tax value = irrelevant
Zestimate = irrelevant
Seller's asking price = irrelevant
What someone will PAY = 100% only relevant criterion.
Cash offer, close quickly, no contingencies sometimes = big discounts...and I'm only interested in buying BIG discounts! --173.19.xx.xxx |
Price check (by Kurt [MI]) Posted on: Sep 27, 2017 4:49 PM
Message:
Max offer: $108,000
But may start at $85-90 --135.84.xxx.xxx |
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