Here I break down the numbers on how much I make on my fourplex! Let me know what you think about this deal. I plan to do more videos on the process of getting these properties.
HOW MUCH I MAKE ON MY FOURPLEX 🏡 ($175,000 Purchase Price)
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
Sharon Tseung 0:02
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives.Hey guys, it’s Sharon from digital nomad quest and today we’re gonna talk about how much I make on my four Plex that I purchased $475,000 now if you guys are new to this channel, welcome, I’m all about teaching y’all how to build passive income become financially free and design your best lives. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified on my latest videos. So in my previous video, I talked a bit about my experience with purchasing the four Plex a little bit behind the backstory. So basically, I was super interested in out of state real estate investing, I finally decided to start researching the market ended up going into the process in December closing in March took a while for me to actually have everything closed because there are a lot of moving parts had to get in touch with the real estate agent, the lender, property management company, and the homeowners insurance company, a lot of different moving parts side and make sure everything was all good. I want to show you guys a little bit of what the four Plex looks like. Again, here’s a little bit of the video. So I actually went out and visited the four Plex for a little bit out in Texas, I was able to visit the fourth unit because it was vacant at the time, there were three occupied units at the time, now he got the fourth tenant, but at that time, we were able to visit that D unit. And let me just show you guys a little bit of that clip. Alright, so as you can see, the four Plex is nothing too crazy, nothing too fancy, it needed a little bit of repair, but not too much. As you can see, I wanted it to be in that condition, or it’s definitely nice to live in. But I didn’t want to do anything too fancy to it. So the purchase price of this four Plex, again is $175,000. So as my loan I put in a 25% downpayment 25% is usually the requirement for multifamily units. So I ended up paying $45,000 for the down payment as well as closing costs. So my agent actually made kind of a unique contract where the seller contributed to some of my closing costs. So that’s why I paid about $45,000. And then on top of that I paid about 5000 repairs, including this AC unit that I recently had to put into the four Plex because the old one had issues. But other than that most of it was like cosmetic repairs that they wanted to fix up for the fourth unit. Aside from that there will be ongoing maintenance. So my property management company handles a lot of this, but I have to pay the repairs, they helped me coordinate everything in terms of expenses, I pay about thousand dollars a month for mortgage property taxes and homeowners insurance. So mortgage is a little over 600 bucks. And basically the lender was like, do you want to open an escrow account where it includes your property taxes and your insurance. And I said, Why not? Because I might as well pay that monthly sums, I don’t have to think about it. So the great thing is obviously I am paying down the mortgage while everything’s going on. And then I pay $150 a month for water and trash and then I pay 10% for property management fees. So the standard is usually around eight to 10% 10% a little bit on the higher end, I could have actually gotten it for 8%. However, this company had better reviews, I called them and I really felt like I trusted them more than other companies I called. So that’s why I went with them. Instead, I really felt like they could handle it better their reviews are amazing. So 10% is essentially $209 50 cents, it’s 10% of the rent, I’ll talk a bit more about how much I get from the rental income. So in my analysis, when I’m looking at deals I usually a lot 10% or repairs and maintenance as well as 5% for vacancy. And when I say that, that’s again, of the rent income that I get. So my rent income currently is 2095 per month. And essentially 10% would be $209 50 cents allotted for repairs every month, as well as $104 and 75 cents allotted for vacancy in case people leave and I have to get new tenants because these are estimates in case these things happen. I’m just only going to talk about the forscher expenses right now. But in my research and analysis, I always allot those two different things to make sure that it’s a good deal. So let’s talk about the rental income that I get. So essentially three of the units were occupied, and those tenants were paying $500 a month each, I could have increased the rents, I didn’t want to make it hard for them during these times one of them their lease ended and instead of moving forward by adding more to rent, I essentially just made it the same. I don’t want to make it hard during these times. But the fourth tenant, I charged basically average rent, so we got a tenant paying 595 per month for that unit. Now totaling all these things up three times 500 plus 595. I’m getting 2095 per month now subtract $1,000 of you know mortgage property taxes, insurance as well as $150 for water and trash as well as property management fees of $209 50 cents, I’m getting around $735 and 50 cents of monthly cash flow. So that’s a good amount right if you’re gonna subtract vacancy and repairs that are estimates $735 50 cents minus $209 50 cents of possible repairs and $104 75 cents for possible vacancy, that equates to about $421 and 25 cents. Worst case scenario, a lot of things need maintenance and I get tenants who leave, then I would actually be getting $421 25 cents per month in cash flow. I’m happy about it, I know that I could increase the $735 50 cents cash flow if I wanted to in the future. When everything stabilizes when the market increases, we’ll see what happens. But I’m already happy with 700 bucks a month in cash flow. Obviously, this covers my mortgage as well. So on top of everything, I’m getting this much and I don’t really have to do much management, I have a property management company that I can interact with. And they can essentially do all the repairs and handle tenant inquiries and things like that. So essentially, that’s it that’s how much I make on my four Plex. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives.Hey guys, it’s Sharon from digital nomad quest and today we’re gonna talk about how much I make on my four Plex that I purchased $475,000 now if you guys are new to this channel, welcome, I’m all about teaching y’all how to build passive income become financially free and design your best lives. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified on my latest videos. So in my previous video, I talked a bit about my experience with purchasing the four Plex a little bit behind the backstory. So basically, I was super interested in out of state real estate investing, I finally decided to start researching the market ended up going into the process in December closing in March took a while for me to actually have everything closed because there are a lot of moving parts had to get in touch with the real estate agent, the lender, property management company, and the homeowners insurance company, a lot of different moving parts side and make sure everything was all good. I want to show you guys a little bit of what the four Plex looks like. Again, here’s a little bit of the video. So I actually went out and visited the four Plex for a little bit out in Texas, I was able to visit the fourth unit because it was vacant at the time, there were three occupied units at the time, now he got the fourth tenant, but at that time, we were able to visit that D unit. And let me just show you guys a little bit of that clip. Alright, so as you can see, the four Plex is nothing too crazy, nothing too fancy, it needed a little bit of repair, but not too much. As you can see, I wanted it to be in that condition, or it’s definitely nice to live in. But I didn’t want to do anything too fancy to it. So the purchase price of this four Plex, again is $175,000. So as my loan I put in a 25% downpayment 25% is usually the requirement for multifamily units. So I ended up paying $45,000 for the down payment as well as closing costs. So my agent actually made kind of a unique contract where the seller contributed to some of my closing costs. So that’s why I paid about $45,000. And then on top of that I paid about 5000 repairs, including this AC unit that I recently had to put into the four Plex because the old one had issues. But other than that most of it was like cosmetic repairs that they wanted to fix up for the fourth unit. Aside from that there will be ongoing maintenance. So my property management company handles a lot of this, but I have to pay the repairs, they helped me coordinate everything in terms of expenses, I pay about thousand dollars a month for mortgage property taxes and homeowners insurance. So mortgage is a little over 600 bucks. And basically the lender was like, do you want to open an escrow account where it includes your property taxes and your insurance. And I said, Why not? Because I might as well pay that monthly sums, I don’t have to think about it. So the great thing is obviously I am paying down the mortgage while everything’s going on. And then I pay $150 a month for water and trash and then I pay 10% for property management fees. So the standard is usually around eight to 10% 10% a little bit on the higher end, I could have actually gotten it for 8%. However, this company had better reviews, I called them and I really felt like I trusted them more than other companies I called. So that’s why I went with them. Instead, I really felt like they could handle it better their reviews are amazing. So 10% is essentially $209 50 cents, it’s 10% of the rent, I’ll talk a bit more about how much I get from the rental income. So in my analysis, when I’m looking at deals I usually a lot 10% or repairs and maintenance as well as 5% for vacancy. And when I say that, that’s again, of the rent income that I get. So my rent income currently is 2095 per month. And essentially 10% would be $209 50 cents allotted for repairs every month, as well as $104 and 75 cents allotted for vacancy in case people leave and I have to get new tenants because these are estimates in case these things happen. I’m just only going to talk about the forscher expenses right now. But in my research and analysis, I always allot those two different things to make sure that it’s a good deal. So let’s talk about the rental income that I get. So essentially three of the units were occupied, and those tenants were paying $500 a month each, I could have increased the rents, I didn’t want to make it hard for them during these times one of them their lease ended and instead of moving forward by adding more to rent, I essentially just made it the same. I don’t want to make it hard during these times. But the fourth tenant, I charged basically average rent, so we got a tenant paying 595 per month for that unit. Now totaling all these things up three times 500 plus 595. I’m getting 2095 per month now subtract $1,000 of you know mortgage property taxes, insurance as well as $150 for water and trash as well as property management fees of $209 50 cents, I’m getting around $735 and 50 cents of monthly cash flow. So that’s a good amount right if you’re gonna subtract vacancy and repairs that are estimates $735 50 cents minus $209 50 cents of possible repairs and $104 75 cents for possible vacancy, that equates to about $421 and 25 cents. Worst case scenario, a lot of things need maintenance and I get tenants who leave, then I would actually be getting $421 25 cents per month in cash flow. I’m happy about it, I know that I could increase the $735 50 cents cash flow if I wanted to in the future. When everything stabilizes when the market increases, we’ll see what happens. But I’m already happy with 700 bucks a month in cash flow. Obviously, this covers my mortgage as well. So on top of everything, I’m getting this much and I don’t really have to do much management, I have a property management company that I can interact with. And they can essentially do all the repairs and handle tenant inquiries and things like that. So essentially, that’s it that’s how much I make on my four Plex. So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai
Comments 2
I think you’re on to something here. Thanks for having me in the family!
Steve
Author
Thanks for joining! 😀