[surveyor]

I can share some pictures as soon as I get home. It’s all on my home computer. Most of the fourplexes I saw were not listed on loopnet, though.

The fourplexes I saw ranged from $80k (non-brick construction) to $180k (all brick construction).

[surveyor]

I can share some pictures as soon as I get home. It’s all on my home computer. Most of the fourplexes I saw were not listed on loopnet, though.

The fourplexes I saw ranged from $80k (non-brick construction) to $180k (all brick construction).

[surveyor]

I can share some pictures as soon as I get home. It’s all on my home computer. Most of the fourplexes I saw were not listed on loopnet, though.

The fourplexes I saw ranged from $80k (non-brick construction) to $180k (all brick construction).

[surveyor]

Tax savings is such a difficult thing to calculate because it changes from person to person. Every person’s situation is different and so I just used a generalized tax savings calculation.

But yes, I did just use straight line depreciation.

Also, note that I used the entire property cost ($117k) to calculate the depreciation. Only about 80% of that $117k will be actual depreciation (because you can’t depreciate the cost of the land itself, only the building). The rest of the 20% will comprise of the interest deduction, the expenses, chattel depreciation.

[surveyor]

Tax savings is such a difficult thing to calculate because it changes from person to person. Every person’s situation is different and so I just used a generalized tax savings calculation.

But yes, I did just use straight line depreciation.

Also, note that I used the entire property cost ($117k) to calculate the depreciation. Only about 80% of that $117k will be actual depreciation (because you can’t depreciate the cost of the land itself, only the building). The rest of the 20% will comprise of the interest deduction, the expenses, chattel depreciation.

[surveyor]

Tax savings is such a difficult thing to calculate because it changes from person to person. Every person’s situation is different and so I just used a generalized tax savings calculation.

But yes, I did just use straight line depreciation.

Also, note that I used the entire property cost ($117k) to calculate the depreciation. Only about 80% of that $117k will be actual depreciation (because you can’t depreciate the cost of the land itself, only the building). The rest of the 20% will comprise of the interest deduction, the expenses, chattel depreciation.

[surveyor]

Tax savings is such a difficult thing to calculate because it changes from person to person. Every person’s situation is different and so I just used a generalized tax savings calculation.

But yes, I did just use straight line depreciation.

Also, note that I used the entire property cost ($117k) to calculate the depreciation. Only about 80% of that $117k will be actual depreciation (because you can’t depreciate the cost of the land itself, only the building). The rest of the 20% will comprise of the interest deduction, the expenses, chattel depreciation.

[surveyor]

Tax savings is such a difficult thing to calculate because it changes from person to person. Every person’s situation is different and so I just used a generalized tax savings calculation.

But yes, I did just use straight line depreciation.

Also, note that I used the entire property cost ($117k) to calculate the depreciation. Only about 80% of that $117k will be actual depreciation (because you can’t depreciate the cost of the land itself, only the building). The rest of the 20% will comprise of the interest deduction, the expenses, chattel depreciation.

[surveyor]

I do not know specifically why he was selling the property. I asked my realtor to ask him a few times, but he never got an answer. He originally bought the property for $95k about three years ago, but he put a lot of work into it. He may have been tired of the property or may just have finished re-habbing the property. With all the bad news on real estate, he may not have been able to get as many buyers, or he was probably spooked by all the negative news. He also was keen on closing before the end of the year (and so the closing date is on December 28). Why he wanted that, I do not know…

In any case, he was asking for way too much ($139.9k) and we worked him down. My original offer was $110k and we prodded him down using comparables in the neighborhood. Also, we were in no rush and we were looking at 15 other properties with similar numbers. Finally he came back to us, asked if we would go up a little and we did.

I have to look at what I posted in the other topic post, but I think I calc’d out $300 per month cash flow, a return on equity of 43%, and a cash on cash of 18%. The total closing costs are estimated at around $12k (which reminds me, I have to put together that money…).

[surveyor]

I do not know specifically why he was selling the property. I asked my realtor to ask him a few times, but he never got an answer. He originally bought the property for $95k about three years ago, but he put a lot of work into it. He may have been tired of the property or may just have finished re-habbing the property. With all the bad news on real estate, he may not have been able to get as many buyers, or he was probably spooked by all the negative news. He also was keen on closing before the end of the year (and so the closing date is on December 28). Why he wanted that, I do not know…

In any case, he was asking for way too much ($139.9k) and we worked him down. My original offer was $110k and we prodded him down using comparables in the neighborhood. Also, we were in no rush and we were looking at 15 other properties with similar numbers. Finally he came back to us, asked if we would go up a little and we did.

I have to look at what I posted in the other topic post, but I think I calc’d out $300 per month cash flow, a return on equity of 43%, and a cash on cash of 18%. The total closing costs are estimated at around $12k (which reminds me, I have to put together that money…).

[surveyor]

I do not know specifically why he was selling the property. I asked my realtor to ask him a few times, but he never got an answer. He originally bought the property for $95k about three years ago, but he put a lot of work into it. He may have been tired of the property or may just have finished re-habbing the property. With all the bad news on real estate, he may not have been able to get as many buyers, or he was probably spooked by all the negative news. He also was keen on closing before the end of the year (and so the closing date is on December 28). Why he wanted that, I do not know…

In any case, he was asking for way too much ($139.9k) and we worked him down. My original offer was $110k and we prodded him down using comparables in the neighborhood. Also, we were in no rush and we were looking at 15 other properties with similar numbers. Finally he came back to us, asked if we would go up a little and we did.

I have to look at what I posted in the other topic post, but I think I calc’d out $300 per month cash flow, a return on equity of 43%, and a cash on cash of 18%. The total closing costs are estimated at around $12k (which reminds me, I have to put together that money…).

[surveyor]

I do not know specifically why he was selling the property. I asked my realtor to ask him a few times, but he never got an answer. He originally bought the property for $95k about three years ago, but he put a lot of work into it. He may have been tired of the property or may just have finished re-habbing the property. With all the bad news on real estate, he may not have been able to get as many buyers, or he was probably spooked by all the negative news. He also was keen on closing before the end of the year (and so the closing date is on December 28). Why he wanted that, I do not know…

In any case, he was asking for way too much ($139.9k) and we worked him down. My original offer was $110k and we prodded him down using comparables in the neighborhood. Also, we were in no rush and we were looking at 15 other properties with similar numbers. Finally he came back to us, asked if we would go up a little and we did.

I have to look at what I posted in the other topic post, but I think I calc’d out $300 per month cash flow, a return on equity of 43%, and a cash on cash of 18%. The total closing costs are estimated at around $12k (which reminds me, I have to put together that money…).

[surveyor]

I do not know specifically why he was selling the property. I asked my realtor to ask him a few times, but he never got an answer. He originally bought the property for $95k about three years ago, but he put a lot of work into it. He may have been tired of the property or may just have finished re-habbing the property. With all the bad news on real estate, he may not have been able to get as many buyers, or he was probably spooked by all the negative news. He also was keen on closing before the end of the year (and so the closing date is on December 28). Why he wanted that, I do not know…

In any case, he was asking for way too much ($139.9k) and we worked him down. My original offer was $110k and we prodded him down using comparables in the neighborhood. Also, we were in no rush and we were looking at 15 other properties with similar numbers. Finally he came back to us, asked if we would go up a little and we did.

I have to look at what I posted in the other topic post, but I think I calc’d out $300 per month cash flow, a return on equity of 43%, and a cash on cash of 18%. The total closing costs are estimated at around $12k (which reminds me, I have to put together that money…).

[surveyor]

8xGRM

The 4 unit I am purchasing now in Huntsville Alabama is running at a 6.4xGRM…

http://piggington.com/re_sale_in_huntsville_al

The property is not in a La Jolla class neighborhood for sure, but it is a decent area with lots of tenants across from a military base. The purchase price is $115k and annual rents total $18000 (the post shows $117k sales price, but he is paying closing costs so it’s now down to $115k).

If I had more money, I’d buy ten of these… As such, I will be content to buy two more…

[surveyor]

8xGRM

The 4 unit I am purchasing now in Huntsville Alabama is running at a 6.4xGRM…

http://piggington.com/re_sale_in_huntsville_al

The property is not in a La Jolla class neighborhood for sure, but it is a decent area with lots of tenants across from a military base. The purchase price is $115k and annual rents total $18000 (the post shows $117k sales price, but he is paying closing costs so it’s now down to $115k).

If I had more money, I’d buy ten of these… As such, I will be content to buy two more…

[Author]

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