All Forum Posts by: Charles McCabe

"Vacancy/repairs/property manager - Are these amounts standard?"

Depends ; >  Vacancy is different for every market.  5-10% seems typical.  I use %5 in my area.  I use 10% of rents in my calculations for maintenance; just keep in mind that those are going to be "lumpy" expenses.  Property management, as I understand, goes for 8-12% of rents, depending on market and the number of properties under management.  I use %8 in my calculations because I'm pretty sure that I'll be able to get it down that low by the time I decide to have someone else manage for me.

"Insurance - I pulled this number out of thin air. What should I be expecting?"

Depends ; >  I use either $1500 or $2000 in my market for budgetary purposes.  $2000 if it's a very old property (there are a lot of turn-of-the-century houses in my target area) or a very big one.  That being said, insurance may be way lower (I'm only paying about $800 on one) or way higher (e.g. coastal property).  You should be able to get that property insured for under $1500, even built in 1880.

Thanks,

Chaz

@Rafael C. When it comes to just the mailing address of the LLC, I don't think it matters. It would matter, for instance, if you wanted to use that same address for tenants to mail/drop rent. Just my $.02.

Oops, tagged the wrong person...meant @Jason Turo.

Thanks,

Chaz

@Montero Carney *I am not a lawyer.*

The purpose of using an LLC is to limit liability, as the name says. So any liability created by one LLC (say slip and fall in a rental property) risks all the assets of that LLC, but nothing outside that LLC (assuming you haven't pierced the corporate veil: http://www.businessdictionary.com/definition/corpo...).  Balance that with the fact that the more entities you have to manage, the more expense and complication is involved (tax returns, bank accounts, etc.).  I once heard a credible speaker say that for real estate LLCs, they try to limit total equity in all properties to $250K, thereby limiting liability to the same.

So if you're going to do something high-risk in this "online business", you definitely want it in a separate entity (e.g. LLC). If you're only going to be selling fidget spinners, it probably doesn't matter much.

Thanks,

Chaz

@Nancy Bachety Ah, thank you.  A quick googling tells me that that's not an issue with the usual Jersey Shore weekly rental.  They did pass a law to cover AirBnB-type rentals.

Thanks,

Chaz

@Eric A. Thanks for replying.  Specific answers to your questions:

1. Assuming mortgaged with 20% down, so $103K-ish.

2. Not sure what you mean by "short term taxes". Property taxes are $3927/year.

3. I'm assuming for the moment that it would be operated only during "the season" of roughly half the year and winterized the rest of the time and that while the units were occupied, utilities could total $700/month.

4. I don't know about insurance; that's one of my particular questions.  I have $3000/year in my calculations, but I have no experience with insurance on stuff at the shore.  I can say that one of the units is at ground level and I expect that will raise the insurance cost some.

Do you know of/have a rental property calculator somewhere?  Do you have experience with vacation rentals?

Thanks,

Chaz

I've been watching out for possible Jersey Shore vacation rental deals for a while now and might have found one for which the numbers work.  Does anyone out there have experience analyzing such deals?  Looking for help predicting expenses (like maint/cap, insurance, cleaning, management, etc.) and revenue (I've computed my own rental season curve, but I'd love someone to validate that for me).

What I'm looking at is an MLS duplex that *I think* would rent for a total of $4300/wk at peak, at a least price of $519K.

Thanks,

Chaz

@Anthony Asciutto Can you give me an overview of UnitDash?  How does UnitDash make money?  How long has it been in operation?  What are the potential costs to landlords (or tenants)?  I've spent a little while playing around on it now and it seems pretty awesome...I'm a little suspicious that I haven't been asked for any money yet ; >

Thanks,

Chaz

I'm interested in buy-and-hold financing, too. [email protected]

I have 3 properties currently, bought for cash and looking to mortgage. Closing on two more this week that I'll want to mortgage in 60-90 days. Won an auction on a sixth which, assuming the bid is actually accepted, it would be nice to close on with someone else's money ; >

Thanks,

Chaz

@Ernesto Hernandez  Broker Price Opinion . . . literally a broker's opinion of the value, as opposed to an appraisal from an appraiser.

@Sterling Williams Hey, you need to fix the date in the subject of the post.