All Forum Posts by: Chukwudi Motanya

Hey all,

Just purchased my 4th property and I am almost ready to put it out for rent. However the oven is not working and I want to get that up and running before I get a tenant. Does anyone have any recommendations on people I could contact in the area that could help me get this fixed? I don't think its an extensive issue but I want to get it taken care of.

Please let me know if you have any referrals!

Best,

Chudi

Hey Mike,

What did you end up doing for this one? I am facing the same question myself?

Hi BP,

Is there a major difference between LLC and S Corp? I just heard advice that If I am a solo investor, I would need to be registered as a S Corp instead of an LLC. Does this advice have merit? I am a Buy and Hold Investor as well if that also plays a part.

Thanks for the advice in advance, disclaimer, I understand I will need to talk to a Tax professional for the best advice so do not worry, I will take heed to this as I am looking at the responses.

Best,

Chudi

Thanks @Nick B. and @Zach Quick. I think you guys are right. I've adjusted my approach to this to take what you guys said into account. From what you guys are saying, even if this is still just for practice, I should be trying to get the most accurate numbers I can find. I found another property and this time I was able to find the CIM for the property that has the past figures. I will use that to analyze. 

@Alexander Price Makes sense. Thanks Alexander. And when you said minimum 10% for the capex/maintenance, do you mean 10% each for both?

@Emanuel Papadakis and @Alexander Price. I think that is the main hurdle I am trying to jump across. So the numbers I gave you there are exactly the numbers that I was given from the brochure. How do you guys go about doing a preliminary analysis on opportunities when obviously you will not get the total breakdown on historical expenses upfront?

Hi BP, hope everyone is well. Posting another analysis to help myself practice. Please see below for my analysis:

Purchase Price: $399,000

Price Per Unit: $100,000

Occupancy: 100%

Seller Cap Rate: Not listed, but from my calculations I am getting about 7%

21th attempt at crunching multi family numbers. 79 more to go. Cap rate is not given, but from the model I am using, the cap rate ends up being around 7%

Purchase price is 399,000. Cap rate that I calculated is 7.0%. Although from a per unit basis this is a little low for us, and the cap rate for this one is a little on the lower side, this one right now from my assumptions would cash flow. I think the big factor for this one is the fact that it is coming turnkey. I would be interested in seeing the age of the roof, and the AC and HVAC of each unit, but if turnkey and if these are ok, then our major expenses should be taken care of. On $399,000, and assuming that expenses only take up about 39% of Gross income because its turnkey, then we could potentially have a net income of $27,816. Debt Service would be $21,803 and our cash flow would be $6,000 a month roughly

This deal I believe would make sense, but my expense assumptions may be a little on the light side, so I will need to confirm those numbers

Thanks All

Chudi

Bumping this one up. Thanks all again for your support! @Marcus W.

@Marcus W.

12 unit property