All Forum Posts by: Robert Belz

Hi @Luke Baumbach,

Congrats on your first property! Privacy has always been a concern for us while working with our rental properties. I have had success setting up LLCs to move properties out of my name, and I use a PO Box for any Investment Property related matters. 

I wholeheartedly agree with @Tammy Mason, introducing yourself as the 'Landlord' is the better way to go versus the 'owner'. 

Unfortunately, a quick 10 minutes of google search and you can easily find out the owner of an LLC.

Good luck!

Hi @Francisco Cruz,

Great question. Both of these metrics are important when analyzing any deal. I'll assume you need no explanation on how to calculate either metric.  

CAP RATE measures the rate of return on a rental property based on Net Operating Income (NOI) before financing expenses. That said, CAP RATES very by market. I currently have rentals in Salt Lake City where the CAP RATES are very compressed (~4.5%). I am looking into other markets like Fairbanks, AK, where the CAP RATES are much higher, 7%. Typically, as a local market 'heats up' the CAP RATES will continue to 'compress'.  I use the CAP RATE to ensure the purchase price of property meets/exceeds the CAP RATE of the local market.

ROI is all encompassing, and can be used on investments besides real estate. The most important thing to remember about ROI is that it measures the total rate of an investment when factoring in leverage. The ROI of a property purchased with 50% down will vary greatly compared to one purchased with 20% down. I like to use ROI to make sure that any piece of real estate I purchase meets or exceeds the historical ROI of investing in securities. 

 Final note: both of these metrics don't do a good job taking into account the hidden powers of real estate: others pay down your debt, it acts as an incredible tax shelter, as well as a great hedge against inflation.

Hope this helps! 

@Xiomara Davila Good luck with your first purchase! Half the battle is committing to do it, and it sounds like you're there!

I was in your shoes a couple of years ago and used @Brandon Turner book, The Book on Rental Property Investing. 

There is so much information out there... it is very easy to get overwhelmed. I used his book as a consolidated place to find information: Highlighting, dog ear pages, and underlines, etc! My first rental property was a successful BRRRR.

Good luck! 
 

@Patrick Flanagan, Again, congrats on your first deal. 

I'd have to agree with the highlights that @Dave G. mentioned about SFH: more investment opportunities and a bigger buyers market.

Additionally, I really like the flexibility a SFH offers compared to multifmaily as far as a 'place to park capital'. For example, in 2018, we purchased a SFH as a rental. After a significant rehab, the home was worth 35% more than the original price. Between that value increase and appreciation in the local market (SLC, UT), we used a dirt cheap cash out refinance to fund the down payment for our next investment property. Fast forward to this year, and we are currently selling this trusty little investment in an effort to 1031 the capital gains into another investment. Recognize that these tools are available to MFH owners as well, however you lose 'flexibility when working with lenders, as well as your smaller pool of buyers.

Finally, multifamily prices are held in check by the standard metrics of CAP rate, IRR, CoC return, etc. A SFH can appreciate much quicker if the area is hot. People, myself included, overpay for their SFH since they will be living there! 

Good luck!
 

Hey BP!

After listening to RE podcast episode 425 about “Who not how” and reading the book, I’m inspired and now looking for some help. I currently own a triplex and am under contract on a 4-plex in Salt Lake City. I currently pay the water bill each month and would like to start either submetering or a RUBS.

Any local SLC investors/property managers care to share some advice on this topic? In particular: which method makes more sense? Any contractors/companies you recommend?

I’ve done some light research on it, but most of the info is focused on larger multi family properties.

Thanks for the help!

Robert

Awesome. Really appreciate the advice folks,and thank you for the company recommendation, Brandon.  We've coordinated for an extension, and are trying to isolate which unit in particular has the meth issue.  Then we are planning on renegotiating with the seller, and go from there! 

Good morning BP Community! 

My wife and I live in the Salt Lake City area and recently had an offer accepted on a Triplex.  We are excited about this property because of its awesome location and potential to be fixed up as a great place for people to live.  Our current strategy has been to find properties that require some fixing, rehab the place in a way that allows us to increase rent, and begin leasing! 

My question for the forums today is:

During our home inspection the property tested 'positive' for meth use.  Utah law dictates anything >1.0 is unsafe. Our test came back at 1.2.  For obvious reasons we are hesitant to move forward with the deal, but wanted to ask the great minds on this incredible resource:  What are your thoughts? Back out of the deal? / Ask the seller to reduce the asking price? / Have the seller fix the meth issue?

We have dealt with flooding and mold in the past, and have found those relatively straightforward to remedy. However, illegal drug use is something different.  Any help/advice is really appreciated.  Thanks!

-Robert

Hey all, 

Thank you for the replies and advice.  This has already started to help as I pour through all the information on this site.  There's a ton.  Thanks again. 

Cheers,

Robert

Hey BP Community!

I wanted to take a moment to introduce myself. My name is Robert Belz. My wife and I are recently married and have jumped head first into the real estate world. Although we are native Texans, we currently live in the Salt Lake City area and love it. We have two SFH: one in San Antonio, TX and another recent purchase of a SFH in the Avenues neighborhood of Salt Lake City. Both are currently rented. Our next adventure is investing in a MFH in the SLC or Bexar county (San Antonio) areas. Although we used conventional means (30y, 25% down) to finance these two purchases, we are looking to use unconventional means to finance our next purchase.

When not looking at real estate, my wife and I enjoy hiking and skiing.  I also try to play as much golf as I can!

I look forward to hearing back from the BP community. Thanks! 

Cheers,

Robert