All Forum Posts by: Bjorik Mutize

Hey Nathan!

As said above it is better to analyze by worst case than by squeezing numbers to get good projections. 

What does it look like when you bump up your vacancy and cap ex 2-3%?

Did you already factor in your closing costs in your down payment?

Well i think you are just asking for other ways to calculate ARV. I'm assuming you already know the general comp comparison method from this purchase.

I'm not sure. A SFR especially, i don't think there is a better method. Especially with how further valuations for it will be considered.

If you are using comp comparison you are already on the ball. 

think @Spencer Hilligoss hit it. You see some big players comfortable with a 4,6-8% COC vs 12-16%. Depends what type of investing you are aiming to do long term.

Also don't shy away from looking at other markets.

@Michael Ealy wanna trade problems?

Yea it's iffy. Plus its a judge of character and knowing how financially stable they are. I'd personally rent to the only friends i talk to, that's my situation and comfort though.

It's much easier not to, and if they ask why not...point out all of the cons we mentioned above.

@Benjamin Parker awesome. Yes get rent rolls and a cheat sheet of what the seller paid for expenses. Walk every unit physically with your broker and get a good take on utilities/condition.

Hey guys, I'm all nerves so tell me everything's going to be fine please. I just got the ball rolling on a 4plex. Assuming the numbers all check out and the inspector doesn't find anything deal breaking I have some questions.

1) I don't live in the state I'm buying in. Do I need to occupy one unit to qualify for a conventional loan, or should I rent all four and pay the higher interest? Moving there isn't a problem.-Your financing options become easier/cheaper with owner occupied. However, be prepared with quite a bit of push back from out of state lenders regardless. You can get through it if you are financially prepared.

2) I'm trying to do everything over the phone. The agent I spoke to is an investor and tells me we'll make it work but is there anything I should prepare for?- Read through the forums and find a due diligence checklist from offer to close.

3) Do I need a lawyer before signing anything?- You could, your agent/broker should be POC for most.

4) Any tips on anything?-Cross your tee's and dot your I's. Look at point 2

5) I freakin' hope this works out.-You'll be fine. Feel free to share more details of the deal in your thread. Free free to PM me with any other questions/concerns

You could learn how to structure an equity deal for small partnership opportunities then build and develop a track record to go larger. Grow with your investor/other soon to be investors.

Yea. good news is you have built in income. Your broker didn't notify you of this?

@Christy Keeton

This one is in Bloomington, MN.

7700 France Ave S