All Forum Posts by: Jerrmarco Rhodes

Hey Guys ,

Thanks a lot. I still have another question. How do I know if the expenses and the information thats posted in the ads are understated. How do I find out the most accurate info and details?

Jeffrey,

thanks very much for that. i thought some condos were a good option but I understand what you're saying. There is a lot involved with this one.

I'm just starting out and I want to know if I'm doing this correctly and I would like feedback on a SFR condo in Kissimmee, Florida near Disney World. The purchase price is $68,500 with a 15% Cap Rate. The owner has the choice to rent it out yearly which would bring in a NOI of $10,275. The other choice would be to rent it out daily, weekly, or monthly from $89-$119. I don't know if there are any HOA fees involved but I think that If I choose to rent it out daily at a rate of at least $100 per night to tourists visiting Disney World, that would bring in a yearly gross income of $36,000 per year which would bring in a NOI of $18,000(50% Rule). And my mortgage payment would be $364.59/month (30 Yr @ 7%) which would leave me with a cash flow of $1135.41/month or $13,624.92.

Am I doing this correctly or did I forget something Or is the mortgage too small or too big of a debt for this property? Thank you very much in advance for your help.

Thanks Uwe for your help. I understand what you're saying now and as a result , I 've started looking at properties that have a cap rate of at least 10% or higher.

Thanks Uwe,

I see what you're saying now. I started looking at other deals and now I look for deals that have a cap rate of at least 10% or Higher.

Hello.

Has anyone invested in any income properties in the Dominican Republic such as Hotels, Apartments, etc. If so, what advice can you give to people like myself who are interested in Investing in that area. How does Investing in the D.R. compare to investing in the U.S? Does financing work the same way over there as it does here in the U.S.

I found this deal which is actually for 2 properties with a combined total of 125 units. This is priced at $2,800,000 . The listing says it has a cap rate of 12.84%. I divided the NOI by the derived cap rate(from the band of equity formula) and correct me If I'm wrong here which I probably am, but it says that the maximum purchase price is $4,494,500. I'm not sure if this is correct. I just trying to apply these formulas that I have learned. There is also a cost by the buyer of $30,000 to install security alams. Should that $30,000 be subtracted from the price of the property? And In my calculations, I got $359,560 for the NOI, however in this ad, they list $359,520 as the NOI. Which one is correct? Thank you for your help. Here is the data:

Location: Belle Glade, Florida
PAHOKEE PROPERTY
52 Units
8 - 2/2 @ $400/month
43 - 1/1 @ $300/month
1 - eff @ $200/month
Current Vacant 14 apartments

INCOME
Total Gross Rent $195,600/year
Laundry Income $12,000/year

EXPENSES
Taxes $22,400/year
Insurance $10,000/year
Management $12,000/year
Utilities $12,000/year
Tenants pay own utilities and provide own appliances.

TOTAL NET INCOME (excluding vacancies and repairs)
$151,200

BELLE GLADE PROPERTY
73 units
current vacant 17 apartments
17 - 2/2 @ $400/month
56 - 1/1 @ $300/month

INCOME
Total Gross Potential Income $283,200/year

EXPENSES
Taxes $39,600/year
Insurance $ 11,640./year
Utilities $3,600/year
Management $20,000/year
Tenants pay own utilities and provide own appliances.

TOTAL NET INCOME (excluding vacancies and repairs)
$208,360

Note for Belle Glade: Owner would have to install fire alarm system (cost estimate $30,000)

Its actual 4 builds
Financial Summary

*
Actual
* Net Operating Income
$359,520

Hello,

I found this property and I was curious to see if it comes close to a good deal or not. I used the 50% rule but I may have made a mistake so i would like if you could help me out with this. Thank you.

Milledgeville, Ga
# Price: $2,150,000
# No. Units: 61
# Building Size: 37,440 SF
# Price/Unit: $35,245.90
# Property Type: Multifamily
# Property Sub-type:
Garden/Low-Rise
# Property Use Type:
Investment
# Cap Rate:
8%
# Occupancy:
94%

# Year 2008
# Scheduled Gross Income $340,404
# Effective Gross Income $340,404
# Operating Expenses $143,631
# Net Operating Income $196,773
# Pre-Tax Cash Flow $196,773

Hello Everyone,
This is for an already occupied Triplex located in the Atlantic Station area of Atlanta,ga. I would like to know if this a good deal or not. Thank you for your help.

# Price:
$299,900
No. Units:
3
Building Size:
2,300 SF
# Price/Unit:
$99,966.67

Net Operating Income
$29,990

Unit 1 is a 3BR unit with an additional upstairs loft. Unit 2 features 2BR/1BA and Unit 3 is a studio unit

Description No. Units Avg. Mo. Rent
3BR/ with upstairs loft 1 $1,350
2BR/1BA 1 $750
Studio 1 $595

Thank you very much. That helps and i didn't see it that way