All Forum Posts by: Nick Horob

I have an initial budget for 5,000 postcards and a 2,500 count list.  Should I just send each person 2 cards or should I cut my list down to 1,000 or 500 and increase the mailings to each?  Each lead has the same quality.

I'd appreciate your thoughts.  TIA

Call up Farmers National and ask them for an estimate of what the land is worth and have them provide you with soil maps.  You don't have to sell but they'll be able to give you a good estimate on the value of the land.

Typical cash rent is 3-4% of the value.

http://www.farmersnational.com/

I've tried out Vumber and Grasshopper but I was in search of setting that had more intelligent call routing features.

Ironically I found a company in my home market (Fargo, ND) that has built an intelligent phone routing product called Booth.

Check them out here:  https://trybooth.com/?tap_a=2678-e2e27a&tap_s=3765...

(Note: these guys are doing some web development work for me and we've worked out a deal where I will get some consulting time for every new client I refer them.  If that's a violation  of BP rules, let me know)

I bought an option to purchase a 4-plex in Fargo, ND.  The option is assignable.  I don't see many people on here selling options.  I know this isn't a legal forum, but are there any issues preventing me from selling my option?

@Gita Faust thanks!

I'm soon going to have 6 different LLC's containing different assets and business interests. Currently looking at a couple deals that could add a few more entities.

I'd like to use Quickbooks Online or Xero bit can't justify the expense.  Most of these entities only have a few transactions every month.  

What would be my best route for accounting software?  My current thinking is to use Google Sheets to do it manually and map receipts to Google Drive.

There has to be a better yet still cost effective method....

Recently bought two 4-plexes in Fargo, ND.  $165k/each.  8.5% cap rate.  

All units are 2 bed, 1 bath and are rented out at an avg price of $490 which I figured was $100 too low.  

Well we had a tenant move out soon after closing (which was expected), and I rented out the unit for $595.  If we can get all the units to that level our cap rate will move north of 10%.  This includes 5% vacancy, 7% property management, and 12% for capex.  Cash on cash projected to be 13%.

So far, so good.

@John Thedford , what are cap rates in your area for small multi-family?  Or any type of real estate for that matter.  Just curious.  TIA

Thanks for the input.  They do not charge a tenant replacement fee.  I agree that that they are very inexpensive.  Adding a couple points to each category is prudent.  Cap rate drops to 9.3% and cash-on-cash to 9.1%.  Not great but pretty good for our market.

Also, given that this is our first residential investment we're set up so we don't "need" any net cash return and we're going to start w/ a $10k cash reserve.  Vacancy would need to exceed 29.5% before we have to fund the P&I.  Never say never I guess! 

Vacancy has been 3-4% for these properties for the last 5 years and that nearly matches the 3.8% vacancy rate for Fargo as a whole.

I've hired a property manager for 7%.