All Forum Posts by: Adam M Drozdowski

@Jason Schwartz 

No desire to sell at this time.

We have two 10 unit apartment buildings in Franklin Park, IL. The properties have been in my family for a few years. Certain units are in dire need of some rehab work in order for them to be livable in. We are looking to expand our portfolio and need a property manager and preferably a solid contractor to help us improve our units and make our business more autonomous.

@Tyler D.

Hey Tyler!

I mainly use the bigger pockets calculator for all estimates because it is so simple and easy to use. I run my numbers fairly conservative, I've been estimating 5% for maintenance and vacancy, and 10% for capEX and property management.

Even if you plan on managing the property yourself, you need to keep in mind that you probably can't manage it forever and including it in your numbers gives you a good buffer!

I would advise being conservative with your numbers and let the math do the talking!

Generally, I believe you should be aiming for at least a 10% Cash on Cash ROI, if not greater. The 1% rule is a great rule of thumb, but the end of the day, it's just a rule of thumb. Each situation is different!

Don't get discouraged, keep digging until you find that great deal!

@Jaysen Medhurst Thank you for taking the time to look over my caluclations!

I have spoke to a lender and she informed me that current interest rates are about 5%. However, there is an option to buy down but it just doesn't make sense. A 4% interest rate is possible but only with my VA loan.

The agent I am working with informed me that closing costs in the state of TN are usually handled by the seller.

I agree with you, I would most likely have to low ball them for the propety to properly cash flow.

Thanks again for the input!

Hey guys! I've been analyzing deals for the past few weeks and decided to post one to see what you guys think.

This would be my first rental property and I am open to criticism!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Adam L. It did sound odd to me as well. I honestly think I should talk to a new lender, someone that is more knowledgable and has experience working with veterans.

Do you have any idea how large of a disability one would need to have to be able to waive the funding fee? I heard of a rumor it just needs to be 10%, but I would like clarification.

Thank you so much for your input.

@Travis DeForge That soundsl ike such an amazing plan! Thank you for sharing your goals with me!

I think it's extremely advantageous for you to have your spouse on the same page as you. You are literally able to double your efforts and efficiency. I am extremely excited for you!

@Adam L. Hey Adam! I would greatly appreciate all information about the VA loan. I am aware it is only applicable to small multifamily and single-family homes. Is it true that there is a funding fee associated with the loan? I heard the funding fee gets waivered if the veteran gets any sort of disability from the military.

The lender I spoke to told me that I would be unable to use my BAH to qualify and pay for my VA loan, is this common among VA lenders or should I keep looking?

Thank you again for your response, I have been on your website and am made an account! I look forward to speaking with you.