All Forum Posts by: Avi Garg

@Account Closed Most of the properties I looked at had tenants for 3+ years .. So I took a  5% vacancy in my calculations ... However due to the age of the property I allocated 10% for repairs. 

I bought this for long term. However, it might be easier to owner finance this property than sell it. You will get more traction. These properties do not appreciate (IMO) so you will lose a bit in the sales transaction as the seller and buying agent won't go by 3% commission for these and add other costs of the transaction and you will lose a big chunk of change.

Congrats @Jeremy Jackson ... Good cash flow from that property ... where is it located?

@Tiffany Campbell those are the unicorns I have not bothered to chase .. While that might be possible once in a while but not sure if you can do it over and over again .. I am not too experienced either so maybe one of the more experienced investors can chime in. 

@Tiffany Campbell Yes anything close to $300 a month per door is great for me. Kudos for you for getting much more than that a month

@Chris D. That's not the point. There is a reason I mentioned conventional financing, HML, rich family/friend. Relax Dude. I am trying to understand the process for acquiring a small apt complex. This is just a hypothetical scenario so that I have things in place when I am ready to take the plunge. I definitely don't want to run like a chicken with its head cut off when I am about to pull the trigger on an actual property.

@David Frasz Thanks for the info. I knew the residential lenders look at your liabilities but wasn't sure about the commercial lenders. Good to know.

Thanks @Chris Soignier .. I am aware of the other costs but didn't mention them as I wanted to focus on the getting the property under contract. Thanks again for pointing it out though.

Need some help in understanding how to get a MF under contract. Lets say the small apt complex is listed at $300k and the seller is willing to drop the price to $280k (no seller financing available). 

1. The conventional way to do this is to have 25% as down payment and find a commercial lender (LLC required) and get approval letter to get the complex under contract

2. I read someplace (can't remember where) that I can try to find a rich friend/family to give me a screenshot of their account with the money (name scratched off) and I can use that to get the complex under contract and then find the investors. The only issue with this is I thought the bank screenshot should have your name on it.

3. Find HML who will be willing to put in 80-90% so you can get the property under contract

4. Any other way I am missing out (100% cash offer is out of question for now)?

(these are made up numbers to put things in perspective)

Another question I have regarding commercial loan is that does the bank look at where the money came from? Lets say I have 30k and the rest I get from 0% credit card (I know the risks so lets not point the credit card risks).

Helping out a friend. They might have to sell their place soon in Tucson, AZ. 

As the title says, the house is built on double lot 1/3 acre with build 2500 sq ft built area and detached 2 car garage. 

What are the things I need to look for to get them the most bang for their buck. I have no idea where to even begin. Any pointers will be helpful. If someone from BP is interested, PM me and I can give you the address and you can look it up. 

Wasn't sure if I should post in the area specific forum or the PRO ... 

Note: This is not a distressed property so there is no discount and no the seller wont do seller financing. Thought I would avoid some questions. 

@Tiffany Campbell How much do you think the monthly payments are on a 20k mortgage (not my property mentioned here)? A quick google mortgage calculator shows a payment of $120 for a 30 yr note at 6%. 

Now try putting the above in the BP rental calculator for a property purchased at $25k, no rehab, 0 closing costs, renting at $700, taxes of $600/year, insurance of $500, property management at 10% and capex, maintenance and vacancy at 5%. You will get your answer.

As many kind folks at BP have said, use the calculator often so you get the hang of the figures. 

@Matt Pagano PM sent