All Forum Posts by: Ari Hadar

@Ari Hadar 

He states in the last paragraph of his question he will be paying cash up front.

"The deal will be all cash upfront..."

Hey Alexander, 

The best ways to analyze rents quickly and free would be. Craigslist comps, or rentometer in certain markets. If you are willing to pay for a service BP offers the new "BP insights" which I have found works pretty well.

It may not be a perfect assessment but it will usually be close to the fair market rents for your area.

If you have any other questions don't hesitate to reach out. I'm always down to make connections and talk REI!

@Alexander Tesfamicael

Great question Alex.

Unfortunately no shortcut. You will get quick and efficient with your MF deal analysis after you analyze more than 100 deals.

Zillow Rent is not accurate. I typically advised my clients to use 85% - 90% of Zillow's estimated rent.

Craigslist is also good - Just make sure you are comparing apples to apples 🍎

As @Lee Ripma mentioned and that I confirmed with you, MF rent less than SFH.

Continue to put in the work and your eyes will eventually be trained to spot great deals from 1 mile away 😀.

Rentometer is pretty accurate and I rely solely on it for years before I became a Realtor.

BP Insight is also not 100% accurate, especially for Multi-Family.

Once you crush your numbers and you want to confirm your numbers on a property that checked your criteria, then reach out to your Realtor for comparable as this is part of their job and fiduciary duty to you as their client.

You have the right mindset and attitude.

Keep crushing the numbers man!

Goodluck and reach out if you need true comparable.

@Ryan Ross why are you looking to lose $500 per month. Hard pass for me. Make it worse if you have to hire a property manager.

I appreciate everyone's responses. I want to point out that my question was not meant to complain about the fees but rather to say that the 10% of rent collected that a lot of people say to estimate is a higher when taking those other fees into account. Obviously the fees aren't as big of a factor the higher your rents are.

PMCs are definitely a necessary part of your investment (IMO) if you want it to be as passive as possible.

@Caleb Brown The management fees are 8-10%. The higher number that i stated is if you take into account lease renewal, optional inspections, etc.

@John Warren I'm assuming it's for the reasons that you mentioned why investors say MF properties 5 to 30-40 units are difficult to manage from PM standpoint

I probably put about 10-30 deals in the calculator a week for a couple months (mostly so many because was studying about 25 different cities/markets. Then it got to the point where I didn't have to run the numbers... I just could take a brief look at the house and neighborhood and know, needs about $15k, B- market, ARV $135, rent $1300, ROI 12-15% cash flow $300, after refi ROI "real good", etc... This is when I knew I was analyzing plenty of deals because I no longer had to put in the calculator and could "red light" or "green light" a deal as soon as I looked at it. Now I look at pics, location, price, and can immediately "red light" (not worth looking into) or "green light" hey this is most likely going to be a "good deal".

Like you mentioned "good deals" are subjective. 10% ROI in great location? 20% ROI in D location? Or somewhere in between...

In our market we have about half the inventory we should. This time last year had almost 30k houses for sale, now we have about 15k for sale.. makes things tough. Working largely with investors ...we have 16 "pending" right now with clients. ALL, "good deals". Hopefully this encourages you that you can at least find 1 to get you started.

Especially for the first, Go find a deal that is "good enough" just to get started as the investors that I see are the most successful (determined by ROI and cash flow) are the ones the buy, not sit and sit and sit looking for that one absolutely perfect deal.

Real Estate is an amazing investment, most likely as long as you buy and manage smart; the cash flow, equity pay down, appreciation, and tax benefits, will confirm that their was no better place for your money.

@Rahsheen Slaughter where did you get your insurance quote. A rental policy will be $40-60 per month unless this is in a flood zone. A sf should have no utility expense. A mf may have, it all depends if there are separate utility lines. I'm not a big fan of 5% vacancy. I use 8% or 1 turnover per year. You are spending 4k to lower your payment $15.  $4000/$15=267 months to recover. Start saving for the next dp with the 4k.