All Forum Posts by: Scott Skinger

Sounds good. Let me know if you need any help or feedback on anything.

Also, for buildings that size I would be looking for higher than 7 caps. First and foremost, make sure that you have solid cash flow and accounting for high expenses. Your per unit cost should be around the $50K/unit range. You should be able to find cap rates in the 8-9% range. If you go a little further west you will find buildings with a little more hair on them but a lot cheaper.

Generally speaking, Jackson Park Highlands or South Shore East of Stony Island down to 75th street. Further South is street by street, building by building. East of Exchange close to lake has some bad areas and there has been a couple of shooting/homicides in this area in the last 2 weeks.

@Christopher Adrian 8-12% cap rates on the south side but NOT in the South Shore neighborhood. @Calvin LipscombSouth Shore is very neighborhood and street specific. Cap rates can be in the 7's for larger buildings in good shape and in good locations. Average is probably 7.5-8%. You can find higher cap rates the further West you go but you start to get in sketchier neighborhoods and buildings.

What size buildings are you talking about?

@Nick B. pretty much nailed it. Additionally, I will add:

-I don't think 38% expense ratio is being conservative, being at 50% is conservative and some buildings exceed this

-bank won't even lend on a deal with a DSCR that low, you need to underwrite to at least a 1.25 or the deal won't get done

-figure out what financing vehicle you're using, agency debt (Freddie) is possible at a lower LTV and interest rate but comes with requirements, community bank is tougher to get 30 year am on

-I see nothing about exit assumptions, you might have to refi/sell after 5 years with higher interest rates and a softer market...then what? You need to model in a conservative (higher) cap rate at disposition so you are purchasing at the right price to deliver CoC and IRR

That's it for now.

@Dan Handford One thing that I will add is that "the squeaky wheel gets the grease". You are hiring them and get to set the terms or at least expectations up front. You obviously want quick turns. If a PM told me that they take 2 weeks to turn an unit without much detail as to why that long, I wouldn't hire them...because it will probably take them 3-4 weeks.

So, another way of looking at this is, "what fits your business model or personal requirements"? For example, maybe you  want units turned and ready within a week. If a unit is going to take longer (i.e. holiday, extensive work) then the PM needs to let you know ahead of time. No exceptions. Hold the PM accountable and make them make you a priority, of course, without being a jerk about it.

Good luck.

This post, https://blog.capterra.com/the-top-5-most-popular-vacation-rental-software-compared/, is over a year old but probably still relevant as well. Good luck!

Have you looked at Cozy? https://cozy.co/

@Caleb Heimsoth I was about to give you a smart *** answer about using Google or your web browser. ;) But, it looks like they changed things up and it is not clear. I paid $1000 for the online course and "lifetime" access to their mastermind group which includes the weekly calls, etc. It looks like they changed things up a bit and you're "applying" to be part of their mastermind group. The best person to answer is @Gino Barbaro himself. Gino, do you mind providing some feedback?

+1 on @Hadar Orkibi's feedback. I'm a member. Their framework is solid, the content is solid and they genuinely care about your success. If you're on the fence, check out their podcast and all of the free content on their site...lots of good stuff. Or buy their book and see if it resonates with you.

Gino has personally helped me out on the phone, via email or through the weekly call on three different occasions. Very generous with his time and all around solid guy. And BTW, they have a conference in Nashville, October I believe. Another chance to network and learn for a low cost of entry.