Misc. questions from new investor (Toledo, OH, multifam focused)

[Josh Raikin]

Hi everyone! So I'm in communication with a great Real Estate Agent for Toledo, OH named Dave, and he has been so helpful for me in learning the ropes for my first investment ever. I feel bad with the amount of questions I'm asking, so thought I'd reach out to the wider community.

This particularly pertains to Toledo, OH and multifamily, but most questions apply to general real estate.

• What is 1/1, or 2/1, or 4/2 when pertaining to multifamily homes? Does one number pertain to units, or beds, or bath?
• What advice is out there with regards to looking at property that has been listed for a while? I listened to a podcast that someone (whose name I am blanking on) discussed their preference in 200+ days listed, as it can lead to a better deal being made with a desperate seller. What are your thoughts on property that has been listed for a while? (Does it make a difference that this would be my first investment ever in real estate?)
• What are the best ways to determine expenses before you start investing? Who are the best people to reach out to? What percentages are most reliable? How can I gain confidence in this?
• How does one use the AREIS website? I want to input the address "4153 Westway St" in Toledo, OH (just looking for practice in analysis, I don't plan on getting this property), but it's not being found. Did I do something wrong, or am I not understanding something clearly?
• What do I do if the Buyer Estimate from a real estate agent does not have matching data to BP tool calculations? I.e. the P&I calculated from BP tools mortgage calculator is giving me a P&I $100 over what the real estate agent provided me with.
• Regarding comps, what is the best way to obtain the data for them? What are metrics recommendations someone has? Am I correct in assuming I should contact the current owners of the comps and get that info from them, and if so, what are key things to compare?

Thank you to anyone who responds to ANY of those bullet points! I'm very new to this and am trying to avoid analysis paralysis and just going for it (but that obviously leads to many questions)! 

(I'm halfway through Multifamily Millionaire Vol. 1 by Brandon Turner rn and loving it!)

[Mike Mocek]

Hello @Josh Raikin These are phenomenal questions!  Bouncing off of what @Jackelyn Lee has already shared.  

A lot of time, when a property has been listed for a while, it can indicate multiple things.  Priced too high, rents are too low and investors do not want to gamble loosing a tenant right away, the leases are wonky or maybe there are bigger issues (Estate, Something wrong with the property etc).  I personally do not mind properties that have been on the market.  I have been able to snag a few under the listing price with a really nice competitive offer.  it is all about being creative in your offer and making sure that it is align with what you want, but also satisfying the sellers needs.

When you are looking at expenses, get a rent roll, 12 month maintenance history, any renovation background etc. If you are looking at multi-family properties, get the last couple utility bills or an average of the utility bills. Keep in mind, City of Toledo has Water/Sewer/Trash on the bill. Any client I have worked with is always blown away at the bill, but it really does encompass more than just the water. Personally, I factor 10% mgmt fee, 10% maintenance in my quick numbers. You will find that, every investor works numbers differently, some do CAPEX items and some do not. There are quite a few that look at the 1% rule as well to even think about a deal.

When I search on AREIS I put the bare minimum So for this I would search "4153" and "Wes" If there are multiple properties that are similar you can find the one you are looking for.  

Keep in mind the tools that you are provided are just tools, some of them will be effective and some are off.  Whenever I work with a client, I always go higher that way when it comes in lower, you are in the gold.  For example: That fence will cost $1,000 to replace, but in reality its only $600.  

Comps-  Your realtor should be providing you comp analysis, this is the best way for you to make a conscience decision on a deal.  Any type of property specific information should come from your agent, who obtains it from the listing side. 

I hope this helps!