I am still mulling over this property. My realistic figures show I could have a monthly NOI anywhere from about $675 to $850, depending on how I structure things. If I got 100% conventional financing (which may be a stretch), I could get a 30yr note @9% for only $350 or so a month. This would leave me with a minimum of $325/mo in positive CF. But I'm starting to second-guess some of my figures and I really need to get more info on the property itself. The one thing that intimidates me is that it was built in 1900. My version of "old" properties is 1980's, or 1970's at worse. This property predates that by a long shot.
PM Company #1
I finally got a response back again from the man who runs his own PM company in the area the 5 unit is located. He sent me a picture of the two complexes he is selling and the price he wants. Both would be nice buys where I live, but may be a bit overpriced where they are located:
 4-plex $119,000 |  7-unit $239,000 |
He said he's going to send me more information about the properties, including a pro forma sheet, "soon".
PMC Company #2
Did I finally find a good person to work with? After getting an email from the agent I've been working with on the 5 unit about not finding any PM companies in the area, I did an internet search and found several (which I mentioned before). One of those was PMC #1. The other was a real estate agent. I sent her an email the other day, and we have been conversing like clockwork ever since. I'm getting a better response out of her than I have with ANY agent I've worked with in the past, locally. She is not only a RE agent, but has 10 years of banking experience, land development experience, property management experience, and she says her fiance is the owner of a construction company.
She's already sent me a listing of properties that includes several the other agent there missed. A lot of the properties need work (some need a LOT of work), but I can buy several of these that cash flow out of the box vs. ONE where I live that will be good to CF at all. I'm not getting my hopes up too much as there is still some obstacles to overcome first - mainly financing - but the outlook appears a lot better than it did just a week ago.
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