All Forum Posts by: Chris LeMay

Is this Cap Rate and Cash on Cash good for an apartment complex with 11 units?  

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*This link comes directly from our calculators, based on information input by the member who posted.

John - I have plenty of money to run the business, it has nothing to do with the amount of money I have.  The question was whether I have to return the security deposit due to the tenant breaking the lease.  The answer, as Russell stated, is no.

Thanks Russell, that is what I thought.

Need some guidance on this one as this is a first for me.  Here is the situation....

We purchased a condo on Jan 16th. We found tenants and they have signed a 12 month lease. They were scheduled to move in yesterday at 5pm. At 3pm yesterday, they sent me an e-mail and said they would not be moving in because of the HOA terms. They did not specify which terms they cannot agree to, but I suspect they simply found a better place and are using the HOA as an excuse. Today, they asked for their Security Deposit back. At this point, I do not believe that I need to return the money to them because I have to start the entire process over. (Show the unit, process applications, run background checks, sign new leases etc.) The lease is in MN and the lease itself really does not say anything that would help me determine what I must do legally. From my perspective, they broke the lease by not moving in on the scheduled day. The Security Deposit will not be returned because I owe the bank the first month's rent in addition to the costs I stated above. Please let me know your thoughts from a legal perspective.

Thanks!

Just bought our first property and have signed a lease with tenants.  We are offering rental payment by electronic means (Zelle, Venmo, CashApp etc.).  However, we have just read a few articles that say allowing electronic payments is not a good idea due to the fact that partial payments are automatically accepted by these apps.  I am not sure if I need to be overly concerned with this or not?  Would appreciate some feedback from Landlords that use electronic payment and whether this is an acceptable risk to take.  Thanks!

Christopher - I am just getting started in real estate investing.  My wife and I both have full time jobs and we just made our first purchase.  To me, the answer to your question is as follows: Your wife should either read a book on investing, watch a couple of Brandon Turner webcasts or read some articles on investing on this forum.  I think if she understands it better, she will become a partner with you and no longer an antagonist.  

Investment Info:

Single-family residence buy & hold investment in Woodbury.

Purchase price: $158,500
Cash invested: $40,000

Just bought our first townhome in Woodbury, MN. Excited to get my investment career started.

What made you interested in investing in this type of deal?

Cash Flow, close to home, purchased it below market value and long term equity.

How did you find this deal and how did you negotiate it?

Found it on MLS.

How did you finance this deal?

30 year mortgage with 25% down.

How did you add value to the deal?

Townhouse is 'move-in' ready so nothing new to do at this time. Will likely add granite counter tops and SS appliances in 2019.

Lessons learned? Challenges?

Still need to find tenants so I am sure the challenges lie ahead.

Doug:

My wife and I are just starting in real estate. As we look at deals, we are using the calculator on BP’s platform. We are currently looking to cash flow $200 per month and have Cash on cash of 10%.  

You mentioned D4$ in your post, what is that?

Thanks!