All Forum Posts by: Aaron Smith

@Michele Fischer thanks for the reply. 

From what I gather on CL, some include all utilities in rent, some include heat/water. Most are charging higher than what the market rate is listed on the Proforma with the included utilities. 

I'm not certain how much individual metering would cost. I'm still analyzing at this point. And it's Detroit, so, GUARANTEED they'll put a lien on the property for unpaid utilities.

UUGH... This is a tough one because,by taking out that $17k and billing it to the tenants, the increased cash flow makes this deal a no brainer. It's deciding whether the tenants can handle the extra $100 mo. Have you seen deals where the landlord/tenant go 50/50 on utilities? 

Hi Lauren!!

Welcome to UT! Like Caleb stated above, hit the podcasts, and read up on the topics you're interested in. Flipping is a whole different animal compared to buy/hold. Sit down and figure out what your goals are, that may help you decide.

Do you want a steady cash flow to replace your income? Do you want profit? Both? Do you have the skill set to flip? Or do you have the cash and connections to hire contractors to help you flip? There are a million questions, and twice as many answers :D 

For me, I KNEW I didn't want to flip. I have SOME skills, but I don't have the wherewithal do deal with flipping. So, I'm getting into buy/hold. 

Also, if you're like me and aren't in the car that much, the podcasts are on YouTube as well.. 

All the best!

Aaron 

Hey BP gang,

I'm looking at a 15 unit property in Detroit. The price is decent, as is the rent. However, the landlord pays for everything but electricity. So last year, the utilities came to $17k!!!! Which of course, kills the bottom line. 

If I were to buy this property, how do I go about billing the tenants for water usage? It's a small apartment complex but it doesn't sound like each unit is individually metered. Essentially, I'd be adding $100/mo to their rent. It's not the nicest part of D-town, and it's at 75% capacity. I don't want to chase away the current tenants if I can help it but an additional $17k in expenses is way too much. 

Any thoughts, questions, or comments are greatly appreciated!!!! 

All the best!!!

Aaron

@Nick Vondrachek. Usually 2 years is the minimum because they want to make sure your income is stable. IF you have a big enough down payment. All you have to do is start asking around. The banks will gladly tell you their requirements. Talk to mortgage brokers too. They may know lenders who will work with your circumstances. If you don't know any, get to a REI club meeting and introduce yourself and tell people what you're looking to do. Someone will know who to get you in touch with.

All the best!

Aaron 

Hi Heston,

Don't ever feel hesitant about attending a meeting just because you feel you don't know what others may. Everyone starts where you are, including me. You'll never get to know the peeps if you feel you have to be an expert. There's always learning to do! 

All the best!

Aaron

Thanks Laura! I figured they were not much help when it comes to making offers. I appreciate you taking the time to reply! And if I get stuck I'll definitely reach out! 

All the best! 

Aaron

Hello everyone, 

I'm a new wanna-be investor and have been looking at several properties. Quite a few come up on Zillow. When I look at the sales price I often see the "Zillow Estimate" which can be quite low compared to the sales price. 

My questions are: Is the Zillow value based on the latest county tax information? If so, should I ignore this value when making an offer? How do I best determine the value when trying to make an officer, especially on MFH's such as 4-plexes? 

Thanks so much in advance! 

All the best, 

Aaron