All Forum Posts by: Adam L.

Hello, Jon, and welcome to REI. I will start by saying I have not purchased any properties myself; however, I have analyzed many properties and I have a decent idea of how to do that.

My first question is how the rent is only going to be 1500 if you are currently paying 2600 I'm rent. If that's the case why would you not be in a place that should only 1500 right now? Just a finance question to start the process.

As for the numbers, you're out to want to look at the property as if you're not going to live in one of the units if for no other reason than I'm guessing, judging by your profile pic, you will not be staying there for ever being in the military. Immediately off the bat it looks like you are losing 2800/month but after plugging in some numbers (you're provided numbers which I am assuming you already researched) it looks more like you're losing 3400. I say this with the below numbers:

Rent Income: $5,500

Expenses:

Mortgage: 5526

Property Management: 385 (7%. Even though you may do it yourself, again, act like you won't be there forever.)

Taxes: 900

Insurance: 1000

Repairs: 275 (I'm changing this a bit to 5% of rent)

Capex: 550 (large expenses calculated at 10%. Things like roofs, appliances, etc.)

Total income: $5,500

Total expenses: $8,911

Now keep in mind, this implies each occupant will be pay their own utilities, trash, etc. I would say this is certainly not a deal you would want to endeavor into. Perhaps you can look for a multi family that needs some repairs and rather than use a VA loan try and get a 203k FHA loan in which you can put rehab costs into it. Just some quick thoughts from me. I hope that helps a little bit.

Also, take a look in the documents and you can find some various excel files that can help you analyze properties.

@Todd Dexheimer, that sounds great. I will send you a PM. Thank you for the message!

To start I want you to know I'm not experienced in purchasing properties but I have analyzed many many properties. I'm just stuck in the rut of just analyzing right now so... take my thoughts with a grain of salt. 

The math to come to the conclusion really depends on what you are looking for and where you are looking at it. You will have to look at what you can get for rent in the area by knowing your area well, researching on things like rentometer, or checking rentals in your area on sites like Zillow or the like. Additionally you will need to see what the cost will be for your property in particular. In general the things you need to look at are the standard payments (loan, tax, insurance,etc), capex, vacancy, PM, utilities (if paid by the owner), etc. 

If your goal is $100/door or 1% or 2% or whatever then make sure your numbers match your goals. Stick to what you know will meet your needs/desires and go for it! 

There are plenty of places on this site that will help you understand how to analyze but hopefully the little bit I put here helps you out some. 

@Poem Turner, thank you for the message! I agree with your statement and really like to make sure the money I spend is going to be worth it. I feel this site has so much free anyformation and connections I have a hard time justifying spending money to join a group for that; especially being stationed overseas without the ability to meet with people in person. Thank you again and I sent you a PM! 

@Dave Foster, I like that statement; I may have to steal that from you. As for introduction, I would greatly appreciate that! Thank you for your time and help! 

@Greg Scott, thank you for the reply and compliments. My wife and I try hard to keep a smart balance in our life and be fiscally responsible. 

And I realize I have plenty of cash to start working several SFRs but going for a MFR property will provide better cash flow and more stability in the long run. I would rather start knocking out some smallish MFRs and then work on some 1031 exchanges as I get closer to retirement. I think fiscally speaking I can manage with a small MFR by myself but with being active duty and moving around pretty often it makes it tough to really get things rolling (partially an excuse since there are people that do it but still truth as well). The reasons I am looking for a partner are more to help walk me through some of the processes with MFR investing, assist with the boots on the ground, and really help invest my dollars into something useful for the both of us. Again, I'm sure I can do this by myself and keep all the profit but why not attempt to gain some good knowledge and experience in the process!

As for surrounding myself with successful investors, I would love to do that! I try to gain that with the site and podcast since I do not have a large pool of successful investors hanging out over here with me. Ha ha. I am certainly planning to get involved with REIAs wherever I end up when I move back to the states but for now it seems BP is by far my best bet. 

All in all I do certainly have some fear in jumping right in and doing it alone; especially ever since moving overseas. I love the idea of making my money provide a lasting income for me and working hard to get there but I also know there is no shame in asking for help the first time or two. 

Thanks again, Greg. 

Hello, all! My name is Adam and my wife and I are in the Air Force stationed outside of the country. I have been kicking around for a while doing the analysis paralysis stalemate with myself looking at SFH housing in the Tampa area and I think I finally need to start looking for a partner to help get me rolling. As @Brandon Turner always says, 50% of a good deal is better than 100% of no deal.

That being said, my wife and I are avid savers and have been wanting to get into real estate investing for a couple of years now. We have approximately $150k for immediate investing cash on hand, we save at a rate of approximately $6k a month so we have the free cash for monthly payments, we have fantastic credit, and we have the desire to get things rolling! We are obviously new to this stuff when it comes to purchasing properties and especially when partnering up; however, I have been looking for deals for a while and I am pretty strict so with the hot market and my limited access being stationed overseas, the numbers on the properties I find end up not being acceptable.

I prefer to start looking at multifamily, and preferably smaller apartments, for multiple reasons. I feel the capital I have, the amount of monthly free cash I have on hand, and the smoking market in SFH in the Tampa area is killing my SFH chances. Of course I like the idea of having more doors to help spread the risk as well.

All that said, I would love to get some advice on finding a partner or hopefully even talk to a few people looking for a partner. I, being out of the country and having a very full time job, have limited ability to have boots on the ground, but I can certainly offer the ability to provide stable funds, assist in analysis, have a small group of family/friends who can assist in the Tampa area, and work hard to gain as much knowledge as I can.

Thank you all for your time and help in advance!

Welcome! I too am looking to invest in Tampa so welcome to the area! You've listened to the podcast a lot so I'm sure you know how much great information is on the forum. Look around and learn a bunch! I've been stuck in he analysis paralysis stage for a long time and doing nothing but listening and reading so don't be like me! Ha ha. Get at it and good luck. Again, welcome! 

Thank you for the replies!

@Account Closed, thank you so much for the offer! I will have to keep that in mind. I appreciate in help I can get.

Thank you, @Xeniya McBroom. I have been emailing with @Jeff Copeland a little bit but I have not been able to find something matching numbers that make sense. Obviously no one's fault; it is what it is...Markets are fickle. 

I have found a few properties with potential on loopnet; however, without a solid real estate background I think I may have some tough times getting the financing even though my wife and I have great financials. Our lack of experience will likely hurt us there. I am hoping we can get over that hump and get some traction! Thank you again and I look forward to discussing some options with you.

I cannot personally speak for Ontario as I have never seen anything there. However, the fees can range quite a bit depending on what you want to move over. If you want to separate water and electricity (you also have to think if you need to then get separate HVACs if each apartment doesn't have one), then you could be looking upwards of a couple grand per unit. This can change based on the codes in your area though so you certainly need to get some bids on it from the local guys and see what is even legal in your area. Separating water could be a major pain and expense as you would need to add a lot of meters, they may have to dig a lot depending on how the main is coming in, etc.

If splitting is going to be a lot or not possible, one thing you could do is RUBS (Ratio Utility Billing System). Basically you charge a set amount for utilities based on how large a unit is and many people are in the unit. If nothing else you can start this way as you save money for the overhaul later. Again, depending on the local laws, you may be able to enact RUBS right away with an addendum to the contract or you may have to just wait until contracts are up for renewal.

I wish I could be more help but I am not the most experienced guy. At least I can stick around and see what the experts say, though! Good luck!