All Forum Posts by: Christian Nachtrieb

Hi BP,

For those who rent out to students.. is there a "best" time to post and start advertising your listing online, and a time I should definitely avoid?

Some background: I'm currently in the market for some small multi-families, and believe I've found a great deal near a research university. I'm nervous about renting to students this close to summer. If I close on the property in June, that means I only have July to to rehab it and get it listed and rented in time for a September semester (is that when school starts? I've been out for 10 years and can't remember, haha). 

Am I cutting it too close? What would you all do? Thank you!

Christian

@Sean Lauber Hey Sean, that's an awesome story very cool for sure! Curious about the water / waste payments.. is that $150 TOTAL for the water, and $160 total for trash? Thanks so much. Would it be Ok if I had any future Troy questions? Looking to pick up a multi myself pretty soon hopefully.

Hey @Brent Coombs that makes total sense on all accounts, and based on my numbers the property WOULD still cashflow paying the HELOC interest. My primary concern is after the 10 years of interest only payments the principal then comes into play. I guess my question is, is it better to find a way to pay off the HELOC at all costs and avoid those bigger payments, or just plan for having the HELOC for its entire lifespan?

Thank you SO much for your help. Really appreciate it Brent!

@John Powell I know this thread's a little old but John I wanted to ask you a quick question regarding HELOC's for downpayment. I'm looking to do the same thing.. so the only way to get your money back to repay the HELOC is if you refinance AND the property has gained enough value, correct? Otherwise, what happens if I'm stuck paying interest on my HELOC, has that ever happened to you? Wondering if anyone might mind sharing some not-so-perfect endings using this method.

Thank you all!

Got it thanks for clarifying. I was hoping there was some way I could use private money to cover JUST the downpayment for the property, and then do what you do with a cash out refi to get their initial investment back after 6-12 months. 

Hey @Michael Gansberg just to be sure, can you message me privately which listing you’re looking at?

@Jonathan Taylor Smith are you using a commercial loan in order to be able to use a PML's money for downpayment? How does that work? Thanks!

Hi @Account Closed What I've done in the past is buy the property under my personal name, and then later transfer ownership to an LLC. Thanks for the input as well about the vacancy rate, I will up that a little bit.

@Chris Seveney I only kept CapEx as so large in year one because of my plan to just spend all that money on repairs and upgrades when tenants move out. Afterward, I have 5% dedicated to maintenance repairs, and 5% dedicated to CapEx. Should I up those figures a little?

Looking at a property in upstate New York, it's a 3-family building just outside of Albany in a pretty good up-and-coming part of town. The 3 units do need a little love, some new paint, removing carpets, cleaning, drop ceiling touch ups, new vanities in bathroom, etc. This is why the CapEx budget is so big for this first year.

**All units are currently rented. Once updates, repairs, and cleaning is done, aiming to rent annually at $34,000 - 36,000.

Here's the numbers:

Purchase Price: $160k (putting 25% down)

ANNUAL Rental Income: $28,500

Expenses

Taxes $5,264

Insurance $2,100

Vacancy $1,710

Cap EX (25%) $7,125

Snow Removal $500

Debt Service $7,730

Total Annual Expenses: $24,429

Year One Cashflow $4,071

**Once work is complete, and new tenants found, annual cashflow estimate is $12,000 - 14,000.

This is pretty good in this market right? I'm a little hesitant about keeping the current tenants and using their rent to save for CapEx VERSUS starting fresh and just spending everything up front (I would have to take on another loan). Are these the kinds of numbers I should be getting with a 3-family unit... anything I'm missing?

Thank you!!