All Forum Posts by: Chris Zeh

That's awesome Anthony congrats!! I actually am looking to acquire a duplex in Lakewood, Ohio as my first property as well. advice for someone that plans to purchase in this area within the next 6 months?

BPers! Quick question when you purchase a multi-unit property and you see the property needs some obvious repairs (ie. purple carpet) yet the units are occupied, do you incorporate any repairs into your analysis up front even though you can't do anything until they move out? (goal aiming at getting more CF)

Thanks!!

Thanks all, I will incorporate many of your suggestions!

Hello BP-ers!

Hope everyone is having a good Thanksgiving week so far! One issue I am having as I begin to analyze properties is centering in on a rental unit price for anaylsis purposes (one that makes sense - fair market rent) Furthermore, the hard part for me is looking at a unit with just information on # of beds and # of bathrooms and a couple pictures and saying "this should rent for $###" I can easily go on craigslist and see what close areas are asking and use this as an estimate but I feel this is too loose to base my analysis on.... someone please help!!

Thanks,
Chris Zeh

Mark Smith so funny I am in the midst of this exact same decision in my life right now based on “Set For Life” that I am in the middle of reading!! Currently I contribute 11% to my 401k. My plan, Mark, is to maximize the match which I am given through my 401k (6%) because it is free money from your employer and take that other 5% to begin acquiring assets. Best of luck with your decision!!!

@John Koster Thanks for the insight!

Follow up to your points... So I see you reside in Valley Village, Cali and I live in Cleveland yet but you have a better nose for what the taxes would be, which shows me how much I have to learn, how did you arrive at those numbers? The best I can ever come up with is a quick search on google for "lakewood property tax" and/or "lakewood vacancy rate". I think hearing how you arrived at numbers you feel confident in, would be huge for me.

I was using this home as a proxy to evaluate where I am at with analyzing and all those numbers were estimates, so I will not be able to provide you a lender or insurance! (but I was unaware that investor loans tend to be higher than a home you'd live in, so thanks for that note)

Looking forward to your response!!!

@Brent Coombs thanks for the comments Brent! 

My follow up to that would be how would a savvy novice investor (or even yourself) go about acquiring this info if they don't plan on purchasing a property within the next 6 months? ...Right now I am in the educational side of my journey but I still think it makes sense to know where I stand, to your point.

@John Leavelle very good insight on all your responses!

2. how would you go about finding out if the owner is responsible for them in during your analysis? would you analyze to the point of calling them during your analysis to see who is responsible for what? was also unaware CapRate was only a commercial thing!

3. Brandon Turner's book always recommended laying out an estimate for rehab during your analysis of the property, how would you go about doing this John? as I wouldn't want to deeper dig into rehab costs on every property I viewed, right?

4. I arrived at that price by trying to swing a 10% COCROI but now I am realizing that is not the best way to do it because to your point Purchase Price does not have a huge effect on COCROI. Could you walk me through how you would arrive at a Purchase Price?

I would truly appreciate it if you continued to help, your comments have already taught me some things!

@Samuel Bavido good point, thanks for the input!

Hello BP-ers, relatively new to this whole RE thing and I am trying to make sure I am analyzing deals the way experienced investors do!

I have an example of a property located in Cleveland, Ohio (Specifically Lakewood) and would appreciate some feedback on my analysis and where I can improve.

property https://www.realtor.com/realestateandhomes-detail/...

This is a duplex, and my goal here was to find the purchase price that would yield a Cash-on-cash ROI of at least 10%.

I have attached a picture of my analysis:

Assumptions made during analysis: closing costs: 3.5%, pre-rent holding costs: 2 months worth of income, pre-rent repair cost: 10,000, repair monthly expense: 5% (IF THESE ASSUMPTIONS ARE ILL-ADVISED PLEASE LET ME KNOW!)

Ultimately I am looking for an experienced investors analysis to answer the questions seen at the below:

1. what price would you pay to achieve a 10% COCROI?

2. Based on a purchase price of 77k, how close is my NOI and CapRate?

3. How far off would you say I am in pre-rent repair cost?

4. other tips for a newbie!

Please help, this would be largely appreciated!

Chris Zeh