All Forum Posts by: Andrew Bosworth

Biggest expense?  

TIME!  

Should have started investing when I was 5 years old... 

@Ricardo R.

Thanks for the follow up.  Glad to hear things are going well.  Website looks good.

Congrats!

@Ricardo R.

Just found this thread today while looking for some info on MLOs.  

I know you didn't go that route, but how is the property performing for you so far?

@Ben Leybovich & @Sam Grooms

Congrats on the deal!  Great area of town.

For underwriting purposes, did you develop your own calculator or buy something "off the shelf"?  I'd be curious to know what your go-to tool is.

Hard to say without seeing the policy.  Other than the Property, what kind of Liability coverage did the agent quote?  Who's the carrier?  Feel free to PM me.

@Joel Owens

Your post is spot on.

Here's an example…  An 8 unit property in my target area came on the market unexpectedly last week. I say unexpectedly because I have had my eye on this property for a while and have reached out to the owner in the past (via mailers). The property checked every box for me, and as a bonus, the seller was even willing to offer financing. Only problem was that his numbers didn’t account for management, capex and sufficient maintenance costs (note, there is a big difference between looking at the prior year’s maintenance expenses versus an average year’s expenses – especially when the property is about to be sold!). When factored in, the price of the property was simply too high. The realtor tried to convince me that it would be a great investment, but despite REALLY wanting this property, I had to walk away.

Had I ignored these expenses and not properly underwritten for management, capex and maintenance, I would have potentially been in a bad place down the road when a major item came along, like the HVAC, roof, etc.

Moral of the story is to know your numbers and stick to them…no matter what.  Like you said, better to buy nothing and wait for the right property instead of buying just to feel like you're doing something.

Congrats @Shawn Lowery!

Great job @Dale Carlson.  Keep it up!

@Ray E Sassaman

Hi Ray.  Welcome to BP.  

Contact a local realtor and request the income, expenses and rent roll for the property.  Do the numbers work?  $5,000 gross profit per month seems like a stretch, but you won't know without looking at the numbers.  Are current rents high or low?  What are vacancy rates?  Is the building well managed or is there deferred maintenance?  Are utilities sub-metered, etc.?  Gather info and make an informed decision...don't speculate.

Let us know how it goes.

Congrats @Cory Iannacone.  Great job!