All Forum Posts by: Diem Tran

Hi,

What is that word:  I have an actual current rent roll and would like to use this rent roll for the rest of the year to create an anticipated income statement.  What is this term called?  I can't think of it!  I don't think its a pro forma since I have two month's of actual income.  Please help.  Thanks

Hi, 

I tried to look for this answer before posting so I apologize if its been answered.  Besides Loopnet and Costar, what websites would you recommend for out of state multifamily buildings, just to browse and get a feel for the local market?  Loopnet free accounts views are quite limited and CoStar's fees are outrages for a lone investor.  Thanks in advance. Dee

@Johann Kleisch thank you! 

Thank you Roy! The washers and dryers are really old as well and will need replacing soon too. I will be replacing them probably next month so I could get the 40 gallon water heater, because I'm assuming the new washers will be more water efficient?!?!?  

Hi everyone!

I current have a 42 gallon water heater in the laundry room that contains 2 washers and 2 dryers. This water heater is really old and needs replacement.  At first, I planned is get a new one similar in size but a maintenance guy suggested I get a 80 gallon one "because it'll last longer".  At first, I agreed, but after he left, I noticed that a larger one might not fit. 

I cannot reach him by phone now and need the get the heater before I can talk to him again in the morning.  I don't want to go to Home Depot and buy an 80 gallon one only to have to return it later.  Should I play it safe an get a 40 gallon one? 

We have two washers and two dryers and take in about $500 per month in quarters. Would a 40 gallon water heater be enough? 

Any thoughts? Thank you in advance!

Best, 

D Tran 

From reading posts on BP, I'm getting the impression that commercial real estate, specifically retail and office space are in the recovery stage. So does this mean that we should expect CAP rates to compress in the near future, especially in markets like Miami, Dallas, Phoenix, etc? Thanks.

Hi Everyone!

Could you please tell me how I would value a business for a personal financial statement that I would be submitting to a bank for a commercial property loan? 

I own a photography studio.  I lease the space in a shopping strip plaza.  All the equipment in the business I own free and clear.  Common sense tells me to add up the value of the equipment.  But what figure should I use?  Purchase price, cost of replacement, or what its worth now - used? 

What about goodwill or the income or potential income in the years to come? 

This is my job full-time.  Not only do I get a w-2, I also get a K-1 at years end.

I would ask my CPA but I don't have one. And I doubt that I could find one to see me this weekend. (I'm submitting my financial statement on Monday).  

Please help.  Thank you in advance?

D 

@Bob E. You are so right!  Currently, I'm looking at two properties in Miami.  The first one, OM didn't even include maintenance expense.  When asked about it, agent told me to factor in $250 per unit per year, 26 unit building.  Are they kidding?!?!?!  I know i'm new to the game, but that figure was incredible, even to me.

Second property listed $1500 total for maintenance for the year with 20 units.  OMG!

Bob, I am using the 50% rule now.  But I'm beginning to feel that I might never find a property at 7% cap in Miami using this rule, and I don't want to "ignore" this advice and get into some serious trouble.  Do you think the 50% rule might be too conservative?  Because I'm coming up with strike prices that are 30% below asking price.  I feel like I'm insulting sellers if i were to offer on those prices.  

Diem

@Paul Timmins Thanks guys!

Hi Everyone,

I'm looking at a property that has 19 one bedroom, one baths & 3 Coefficients.  It is in a class c neighborhood, mostly working families.  I tried looking for a discussion similar to this, but when i type in "unit mix", mostly discussions about mixed properties pop up.  Anyways my hare brained question today is this:  

What are the pros/cons of one bedroom units?

I read that 2 bedrooms rent faster, but lets say that I'm in the middle of Miami where the vacancy rate is pretty low.  Am I wrong to assume that even if it takes a little longer to rent out a 1/1, it'll still be ok (assuming that it'll take a week or two longer) ?

I've heard that 2 bedrooms are more popular for families?  But why is it so important to rent to families?  Is it because they stay longer and thus turnover is lower? Wouldn't kids cause more havoc on a unit anyways?  

That's all I could think of now, could you give me your thoughts?  Also, if I should be aware of certain issues, please share!  Thank you BP community! You have been invaluable to this newbie.  

Diem