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All Forum Posts by: Andrew Rees

Andrew Rees has started 0 posts and replied 19 times.

Quote from @Erik Estrada:
Quote from @Brandon Sisco:

90% LTV DSCR Loan? $499,990 3 Units Generating $3,700/mo


That property would not even meet the DSCR requirement if the total income is $3700 per month. Is that for each unit?


I had the same "Wait a minute!" reaction.

A $500K building should be bringing in $5k/mo. (1 percent rule)
If is bringing in $3700/mo total then it is either under rented and the rents need to come up, the building is over priced, or it is simply a bad deal.

See who is currently insuring the building and see if they will let you assume the policy. You might get lucky.

I'm dealing with my own issues right now as I have a 5 plex that is not nob and tube but is screw in fuses and the insurance company (auto owners) threw a fit and demand the fuse boxes all be replaced with breakers or they will drop me.

I'm right down to the wire and they have issued a do not renew order until fixed because it has taken 7 months to get all the paperwork and consumers on board with the update.

I have a really good electrician coming in two weeks now that he finally has his permits, parts and pieces, electrical company ready for the work to be done.

The electrician warned that he was only doing this because he was friends with my PM. Out of the 20 or companies my PM only ONE other company even returned her call and came out and gave a quote for $40K. (gulp!)

Lessons learned:

No more screw in fuses

no more nob and tube

inspector needs to be happy with electrical work

nothing that looks like DIY work in any properties

Quote from @Ropo Sanni:

Hello, I'm new to real estate and I'm looking to purchase my first property in Chicago . I want it to be a multi-unit preferably 3 units. I have about $100k available for down payment, closing costs and I'm hoping to have some left over for reserves. The goal is to make passive income and build generational wealth. I'm hoping to purchase something that is move in ready with little work required to make it more appealing to renters while charging max rent. Currently, the properties that seem to meet that criteria, don't work with the numbers I'm working with. Any advice on how to approach this? I'm looking to re-evaluate my approach. 

Thanks!

I'm closing on a duplex next week.
I crunched the numbers lots of different ways and it will cash flow when fully occupied but only a couple hundred a month.
There are other locations in my market for sale that are way over priced.

As a general rule of thumb I try to keep my units around $50K each for a single bedroom and $75K each for a two or three bedroom unit. A 4 bedroom unit would be in the $100K range.
This means I'm looking for older homes in the older parts of the city.
The buildings may be more rundown and need some extra maintenance but it makes it easier for me to get cashflow out of them.

Your approach should always be to find deals, offer 15-20% under asking price, be prepared to negotiate, and lean on your team of experts for the heavy lifting.

I not going to post links here... but a simple google search will pop some alternatives.

I've not used the calculator here and I don't see information on what it covers or what questions it asks or what kinds of results it gives. Scott, I would HIGHLY recommend going some details and running some examples through it so people can make an informed decision on which one to use.

I recommend being anonymous.

In some cases if you have a PM, let them advertise it as their own.
If you have an llc then the lease and payments go to that.

While I do introduce myself to tenants, I don't advertise I'm the owner publicly.

Post: Brand new, looking to learn

Andrew ReesPosted
  • Posts 19
  • Votes 16
Quote from @Wes Foster:
Quote from @Andrew Rees:

Bigger pockets has a library, buy the books start reading!


 Thanks Andrew. I'm on it. Any particular books you recommend that greatly helped you? 

So far, they all have some nice nuggets!
Quote from @John Clark:
Quote from @Greg Strunak:

Please help,

We recently purchased an investment property. For context this is a cabin in the woods. Upon purchase we found out that our next door neighbor is a “dog breeder”. He has 30 plus dogs that fight all day long and bark all day. As soon as you walk out of the cabin the dogs race to the dinky fence about 80 yards from the cabin and bark like they want to kill you. We have had complaints from guest about the dogs barking. These are also German Shepards. I am concerned 1. That this is a puppy mill. 2. For my guest safety if a dog gets out. 3. The noise. When I confronted the owners about the dogs he didn’t want to hear anything I had to say. What are my best options to fix this issues for both the dogs and my guest. 

You can’t. Sell and move on. The real question is; why did you even buy in the first place?

I hate to say it but after raising English Springer Spaniels (30 Puppies + of em over 5 years) I'd have to agree with the sell and move advice.

But to answer specifically:

1 - probably is a mill and this is likely NOT against the law

2 - the dog gets out and if you get bit you take em to court

3 - dogs are noisy. that's just the way it is. German Shepard's and many other breeds such as Malmutes have a tendency that one barks, they all bark till they get tired and then it stops.

Last of all this is a cabin in the woods, the guy has every right to be there, with his dogs, and do whatever he wants while he is on his property. He has the same right life, liberty, pursuit of happiness, and property just like you do. If this was in town then there would likely be a noise ordinance that he would be in violation of. You going over there and complaining is actually a violation of his rights. You aren't going to win.

Post: Brand new, looking to learn

Andrew ReesPosted
  • Posts 19
  • Votes 16

Bigger pockets has a library, buy the books start reading!

So many things are best written in the lease agreement and any addendums specific for the property.

Would I have printed something off for a tenant? Yeah probably... I'm just too nice...

For the other things tenants have asked for... Such as fans, AC units, etc. Everything is written in the lease for what we provide anything not listed we don't, sorry.

Just be glad you don't live right next to the amish... They are really nice but if they ask you for a ride to town you will be stuck there while they run 6 more errands than the one they asked you for. "While we are in town do you mind if we go to Meijer, walmart, aldi's tractor supply company, the grain elevator..."

It is possible (probable) that the taxes were done incorrectly.

Grab a copy of turbotax etc. and punch the numbers in manually and see what you get.

it was a loan, you paid them back, and after everything was said and done you took a loss.

Whoever did your taxes has got something in the wrong column.