All Forum Posts by: Christopher Pride

Quote from @Moshe Marciano:

Hi everyone,

I wanted to share my current situation and seek some advice. ...

You're in the realm of an attorney. If he's unresponsive you will need someone to force a response then file suit if need be.  Worst case you will need to seek a judgement if the situation can't be resolved otherwise. 

Quote from @Account Closed:

The deal looks interesting...

Wow thank you! That sheet is excellent. I went to the property and some other red flags came up. Namely due to location but there was significant industrial close by that really turned me off. 

From a numbers perspective it works but once we start adding what I estimate to be crunching 80k in repairs, coupled with a soft market for high-end homes especially next to heavy industry...

I decided on a soft pass. I threw out a lower number and they balked.  It's located 9.5 hours of a rough mountain drive so work would be difficult until spring.  

Thanks again for the workup!

For me, in the LTR game, it's tenants.  One bad one can wipe out a whole year's profit.

Quote from @Karolina Powell:

What will property taxes be when you purchase it at the new sale price?

Ok it took me a bit to reply  I went and took a look.  9.5 hrs both ways! There is definitely more work than I thought. 

That said...the taxes remain the same after the sale.  Apparently Idaho is a "non-disclosure" state.  Buyers receive a letter requesting the information from the sale but they are under no obligation to respond.

We have been living on a sailboat with 2 dogs, then a baby so I can definitely relate. Enjoy life. It's short and nobody I know regrets minimalizing, exploring and living a life free of regret.

Quote from @Matt Giordano:

Any B&B investors out there? 

Looking to purchase one and struggling with the right calculators to determine the real metrics.

As I understand it (recently looked at buying a former bnb) you need to treat it like any other STR with your extra costs such as food, etc  baked in to the expenses. Getting a good handle on those are hard if you have no experience.

Think of it like any other rental but calculate out what your food, linen, housekeeping, front desk, upkeep costs are just like any other expense.

Quote from @Gino Barbaro:

@Christopher Pride

What is the median income of the area, so you figure where rents can go. What are you looking to do with the deal? Buy and hold long term or flip? 

What is the unit mix and size of units? Are they separately metered for utilities, or can you bill back to residents?

I think expenses may be a bit light, especially 10k for initial improvements. Banks gonna want you to plug in a management fee. 

Median income is 51,500. Worthy noting it's close to light industrial and downtown commercial, albeit a small town.

We will likely buy and hold until I can do a refi and add to the portfolio.

Its the main house large 3br, 2, 2br and 9 1br. No separate meters so there's a fee added to the rent for all utilities.

Improvements are minor to have it rent ready. Mainly some paint and floor refinish. I intend on doing a cosmetic remodel prior to selling down the road but it's not ready for that. I can rent it with some lipstick improvements.

You're right about the mgmt fee. I will be managing it but I still should pay myself something.

Quote from @Jay Hinrichs:

I have given her a referral to a Portland based HML that is a direct lender and can do this if everything checks out.. also I was not referring in any way to you in the above LOL

 I would love that lender's info, too if possible.

Multifamily with a house and 11 rentals.  House is VERY old but well built.  Would need some cosmetic (paint, refinish floors, minor repairs/upgrades completed by me). It has been on the market for over 100 days.  Realtor says another deal fell through because it didn't fit their needs for an event location.

We'd be coming in with 20% and look at about $10k in initial improvements.  This would obviously be contingent on a thorough inspection.

Asking price: 1075000

Annual Rent: 139k

Vacancy reported: 5%

Insurance: 5900

Maintenance: 10k

Taxes: 4k

Utilities: 15,600

_____________________________

Total Expense: 35500

working on financing this week but I understand I'd be at around 6.5%

My biggest concern is DOM and major repairs needed. Rents can be increased. CAP from my calculation is +10% so naturally I am going to scrutinize. It almost seems...well...too good to be true hence the ask "does this make sense"

Any thoughts or your take on the deal would be so awesome.  You guys rock!

IMO you're asking for trouble and there isn't enough of a potential loss to warrant a response.  Move on.