All Forum Posts by: Chaim Zigelman

@Account Closed My agent gave me some comps on them. I do not want to pay $480, I want to pay around $360.

@Adam Bartomeo The realtor is also a PMC in the area. I thought that as well but I believe there may be room to charge market rents in the near future as well as adding some additional income via coin operated washing machines. 

I'd like to make at least 10% CoC.

I believe he said he had it appraised for $480 by the bank. But other than his estimate, no. I received some comps for the area and calculated the average CAP rate to be 8.2%.

Hi All,

I found a property that is requesting $425,000. I need some help to determine if I should make an offer or not. If I do, i plan to make it between $360 and $390k. I assume $390k as that is what I am told by my agent that he will not go below. 

Any help is appreciated. LTV is 75%.

5 Plex

Total Rents: $45,600
Vacancy 8.7%: $3,967
Taxes: $4,520
Insurance: $2,100
PMC: $4,560
Repairs: Unknown (Could be $1,000 or best guess of 10% of GRI $4,560) Need inspector
Electricity, Heat & Water: $2,500
Misc.: $200

Total Expenses: $14,880

NOI: $26,753

Mortgage: 4.63% 
Debt Service: $18,026

Cash Flow: $8,727

Down Payment: $97,500

CoC if Maintenance at $1,000: 8.9%
CoC if Maintenance at $4,560: 5.3%

The maintenance portion of the above is not fully vetted and could bring my CoC return lower. I was also told that we could tell the tenants that they have to pay for heat and hot water at a charge of $35 a month. This would almost eliminate the $2500 EHW expense. I am not sure if this is common practice so not sure if I should take it seriously. If I am able to do it, it would raise the CoC considerably.

Thoughts? =)

Thanks @Jason Bott

I'm very green on the insurance side of things. When I call for a quote, what should I be looking at for them to quote me?

Thanks @Charlie Fitzgerald Will do!

@Charlie Fitzgerald

Thanks.

So I just emailed my agent and asked him if we could get an inspector in there and he said:

Once we have an executed agreement of sale, I can schedule the inspection. 

Is that the proper procedure? Can we not do it before and agreement of sale?

@Charlie Fitzgerald

What do you mean by sort out? I did speak with him about it and he seemed puzzled that I was quoted so high a number. Unfortunately after speaking with him I am not sure he really knows the numbers too well or he is playing dumb. I'm going to call other insurers to get a better idea of what to expect though.

So, bottom line, get an inspector =)

Thanks @Jim Viens

Thanks @Charlie Fitzgerald

Hi All,

I'm looking at a property but the owner has not kept any records for repairs, expenses, maintenance and so on. All he has to go off of is his rent checks (not even a rent roll!). He is also stating his insurance as $1500 but the quotes I am getting are around $4000!

I did go onsite and the property looks ok but there are things that need to be done. Not repairs wise, mostly maintenance like cleaning painting the hallways, cleaning the stairs, sweeping and so on. 

When I do my calculations, should I go the safe route and assume a 50% expenses for NOI? Or is that foolish since it could be a lot higher since he does not have any records.

Thanks @Paulette Midgette

Thanks @Jeremy Chaudet

Do you manage them yourself or are you using a PMC?