All Forum Posts by: Nichole Wall

I tried that exact you tube video. :) But it didn't work! Grr!! I go to youtube to figure out anything. :)

Okay, so I'm really excited to update that I found a rental rehab program that will pay for half the repairs on the units!!! I have to have the property in my name (buy it). They'll pay up to $25,000 PER UNIT!! So technically I can do up to $150,000. It needs extensive work. My contractor estimated $60,000 so far. We didn't get into the basement because it was locked so we are going Wednesday so we can make sure everything is good down there. If it is, I am going to offer $35,000 I think. I know it's low but I realized that because this is over 4 units, I can't get a conventional loan on it. I'd have to go commercial and I'm not so sure I would get one. So I can come up with $35,000 cash. 

So I reran the numbers on everything and it came out to a CCR of 22.09% and a cashflow of $1,748.98 a month. Those are better numbers for me. :) I would have to pay back a rehab loan but I'm okay with getting 50% off to do it!!

Ahh I see, thank you. Also, my calculations from the analysis you had me use showed only a CCR of 1.53% Is there a minimum that I should look at for that? I wish I could show you the screen shot but it's not letting me share.

So if I don't use comps on a multi-unit for this and the value is based on the cash flow, then how do I determine how much it's actually worth then? 

Ohhh yes, that's what it is! I was figuring that out the other day. Ok, got it. Thank you!

HAHA! Soooo sorry WENDELL!!! My apologies!!! 

That makes sense with the vac. rate, duh. :)  Thank you. 

 Yes that's what I intend to do with the contractor! Glad I'm on the right track with that. :) Thank you. 

Wendy- Also, I can't figure out how to put a screen shot on here. I did it but it won't go in the reply. I have question on a couple things for this...

1. operating expenses...is that automatically calculated?? Or what percentage do I put in there for it?  

2. net operating income automatically calculated along with the less annual debt service and CCR?? I'm confused on that bottom part.

Also I've been trying to learn about cap rate but don't have a total grasp on it. How do I find out my cap rate? 

Sorry I'm so new to this! Thanks for all the help so far. ~Nichole

 Wendy- I'm dealing with a property off the mls, would I still put the property under contract before inspecting?? I think I could do that then put it under contract with my set price. That was what I was thinking. 

Wow, thanks for all the great feedback!! Let me fill you in on a couple things...

1. Vacancy rate...I don't know what it is in this area and actually I'm not sure how I would find that out. Any suggestions?? And say I use a 20% vacancy rate...how do I calculate that?? I guess I don't understand how to add that in. Sorry. 

2. I totally forgot to add in snow and lawn care. I guess I didn't think of that and maybe assumed the PM was to take care of that! Oops. I'll find out what that is but $1,500 sounds accurate. 

3. The garbage is an actual quote I received from the city. They estimated it for me on the 6 unit. I should double check that then if everyone thinks it's low. Thank you!! 

I'm scheduling to go see the units this week too with a contractor. I'll have a better idea for repairs. 

As far as comps in the area, as far as I've seen, they range from 84,000-200,000 so it's hard to say, I ran one set with the wrong square footage number. I need to do it again on top of fixing these numbers. When I get that number, I guess I could base my purchase price on the repairs needed (including meter conversion). I'm really thinking I'm going to offer a really low price if I even want to get into this deal because of the repairs needed on the outside along with the meter issue.