All Forum Posts by: Deborah Burian

I have reviewed the forums and evidently am slow because I simply am not comprehending Cap Rate and the value of using it as a tool. For my quick look, I tend to use Gross Rent Multiplier. These seem much the same yet not identical to me. When I googled it, I got referred to Bigger Pockets :-), so I'm back to ask the community to explain it to me like I'm 3 years old. Thanks in advance.

I use white except on the rare occasion when the almonds are in such good shape we're not needing to replace. It's a nice crisp look and Aaron C., they haven't turned brown yet :-)

Home Depot usually, Lowe's rarely, a big service difference in our market and had a Home Depot card before there was a Lowe's in the market. Tile and paint are almost exclusively from local tile and paint stores. Home Depot is for whatever broke and I need in a hurry.

I do it all the time. They get painted over and there always seems to be a broken one and it just seems to help the looks so much. As other posters have pointed out, you have to be careful about switching 2 prong outlets to 3 prong in an ungrounded house. I usually have GFI added in the kitchen, the bath(s) and for ungrounded props, usually at least on leg in the living areas.

Very nice, congratulations!

I usually let scuff marks go as well as picture holes etc., but they own the water damage. Just had tenants leave a house in really great shape except, on the way out the door, they let their fridge rip the linoleum. They were responsible and they understood that.

I also have a cleaning contractor come in at the end of all rehab jobs. That extra polish is pretty cheap and makes a huge impression. Plus, I hate to clean.

I typically look at properties in the opposite orientation and it seems to me as though many here do as well. So, as a wise man said, you begin with the end in mind.

5 units, cash flow goal is $100 per unit (a door). That might be a little high for the Gar apt and a little low for the 3-bed but you gotta start somewhere and we always start at a minimum cash flow of $100/unit.

Looked at that way, you need $500 cash flow... which makes your costs

$977 enumerated above
$500 cash flow

$1477 monthly requirements before mortgage.

I allow 5% vacancy based on a decade of history, multi's often use 10% so $1765x90%= $1588.50 revenue

Revenue is now $1507.50, minus costs including profit @ $1477, which suggests you can afford a mortgage of $111.50. That's probably not happening so you get to keep asking questions... do I want to count the management fee as profit? Can I raise the rents? Are there deferred maintenance issues?

For our model, I'm not seeing the opportunity here, especially at the suggested price of $80,000.

Good for you! You'll have to keep us posted. One of our nicer homes came to us because it had broken windows and spiders. Lots of spiders. Spiders crawling on the walls and rolling in little conjugal clumps and dangling from the ceiling... It was a Freddie REO and two sweet families looked at the same time we did. It was a nice warm day and the spiders were really moving... They barely got into the house and were GONE. The spiders are gone now and the house cash flows like crazy.

And for the love of someone... take your coke/coffee cups with you when you go... especially the ones with tobacco spit and cigarette butts in them... Of course, that might be regional...