All Forum Posts by: Aaron Krawitz

Congratulations! Can you explain more on what your process was?

I've been looking at a handful of multi-family units in the College Station area (Between CS proper and Bryan). I've never owned an investment property in a college town, but I've read about high tenant turnover and increased wear and tear from student ownership.

Can anyone who's rented in College Station (or other college towns) give their input/recommendations on what's required to keep a unit successfully? Any tips/advice?

Thanks!

@Ed Emmons Is correct, it's a partial amount spaced across the term of the loan. It's similar to a credit card in the way that you start at $0, rather than the full amount a standard conventional loan represents.

I would recommend speaking to the company you're receiving the HELOC from for their specific requirements.

Wow, that's incredible.

So how is your relationship with your mothers boyfriend now? 

Also, can you explain what your partnership details looked like on the first deal? So you agreed to pay 20, him 80. How did you split profits? How was this made official? (I'm new to REI / even newer to partnerships).

Great job on securing a solid tenant!

As @Lee Ripma suggested, we would need more information in terms of expenses. 

I wish I was in the position to do a 3.5% fha on a multifamily. Family obligations and all that...

@Cody L. - Understood. I had planned on adding the PM cost (7-10%), but it seems I left it out. Good catch!

I have yet to take steps on investing as I'm taking the next 6-12mo to read and absorb as much information as I can. That said, I'm running my own numbers on cash-on-cash ROI and I wanted to make sure I'm looking at these correctly. Please let me know if I'm not including any expenses or missing something key.

Property Details:

- 3 / 2, 1374 sqft, $89k asking

Expenses ($802)

P&I: $369

Tax: $188

Insurance: $70

Utilities: $50

Vacancy: 5% ($62.50)

CapEx: 5% ($62.50)

Total Investment (Down Payment + Closing + Repair) = $25,499

Rent = $1250

Cash Flow = $448

Cash On Cash ROI = 21.08%

This is a single family home in an area where I've competitively estimated the rent (Most units running between $1150 and $1450). I'm having the hardest time determining estimated utility costs (water). However even if I increase utilities, vacancy, capex by 5% all around, I'm still near $300/mo. As a side note, I would be managing this property myself and not running it through a PM.

I have yet to take steps on investing as I'm taking the next 6-12mo to read and absorb as much information as I can. That said, I'm running my own numbers on cash-on-cash ROI and I wanted to make sure I'm looking at these correctly. Please let me know if I'm not including any expenses or missing something key.

Property Details:

- 3 / 2, 1374 sqft, $89k asking

Expenses ($802)

P&I: $369

Tax: $188

Insurance: $70

Utilities: $50

Vacancy: 5% ($62.50)

CapEx: 5% ($62.50)

Total Investment (Down Payment + Closing + Repair) = $25,499

Rent = $1250

Cash Flow = $448

Cash On Cash ROI = 21.08%

This is a single family home in an area where I've competitively estimated the rent (Most units running between $1150 and $1450). I'm having the hardest time determining estimated utility costs. However even if I increase utilities, vacancy, capex by 5% all around, I'm still near $300/mo. As a side note, I would be managing this property myself and not running it through a PM.

Besides making sure the HOA is ok with the unit being a rental, make sure they tell you what the HOA covers. This will help you be more precise with your numbers.