All Forum Posts by: Adam Webb

If I’ve never had vacancy does that mean I’m not charging enough for rent?  How do you figure out the most you can charge?  Just list it high and if you didn’t get a qualified tenant to lease to then you lost that month’s rent and you lower it until you do?

I decided to shop rates and terms this last deal.  I found that there were indeed cheaper lenders with better terms than the lender I had been using but I might lose this deal due to the extra time created from shopping, needing to meet different requirements, inefficiencies with working with a new lender, etc.  It just got me curious.

Do you guys just stick with one lender for all your deals or do you bid out every loan?  Also is the process different for different “types” of lenders?  It seemed like I needed waaaaaay more LOE’s and documents with this new lender.  Thanks!

Property comps. It’s a duplex. I understood banks only base valuation off cash flow on commercial ie: 4+ units. 

I can do a cash out refi and use the money to buy another property.  That will make the cash flow on the refi property negative $165 but the cash flow on the new property covers that.  Would you do that?  Is the rule “never negative” or is would you kind of pool properties together and justify a deal based on their collective profit?  

So I find that when I evaluate properties according to the BiggerPockets method, including CapEx monthly, including 5% of gross rents for repairs and maintanence, including 10% for property managers, etc, NO property passes any test. 1% rule, 50% rule, or even being positive cash flow. Should I be viewing this process of evaluation as worst case scenario and run a good, better, best analysis and move forward if it makes sense on the better?

super helpful thanks everyone. So assuming those numbers are correct you wouldn’t buy a fourplex. 

@Josh E. 

Here’s the last two fourplexes I saw. Maybe I just need to keep looking till a better deal comes up!

$809k

Built 1965

4800 sq ft.

$565k

Built 1977

3600 sq ft. 

I’m trying to target my next purchase. In my area I can get duplexes for $250k and fourplex’s for $800k. Why would I buy a fourplex instead of two duplexes? What an I not considering? Thanks for you feedback!