All Forum Posts by: Daniel J.

@Jeremy Pakalka I'll look into them. I do have an agent I work with some. I should have been more clear, I am specifically speaking to in the beginning stages when I'm looking for a basic price range before getting super in depth and spending someone else's time. I appreciate the offer!

@Kevin Wood ok, thanks! I have had very poor results with CL around here. It's so flooded with "we'll buy your house for cash" ads that's it's hard to find anything useful otherwise.

@Tristan S. Thanks!

@Michael Medinger Thanks!

@Jordan Sand I have essential my tried that. It is hard to tell sometimes though because so many rentals remain on there for quite awhile and it's hard to tell why.

Is there a particular place I should be looking for rent comps, outside getting them from an agent? I don't remember who exactly but someone on one of the podcasts did mention rentometer. I do realize with something like that you don't know the exact level of those rentals so you do have to take them with a grain of salt.

Thanks!

Daniel

@Ben Leybovich ok, thank you so much for the info!

@Ben Leybovich Sorry for the tardy reply, we were at a family event. That does make sense. So would you generally recommend simply looking at the property and noting potential issues/weak spots and getting quotes and extrapolating from there? 

I also figured out this weekend that I was way off on my roofing numbers, so I basically cut my CapEx numbers in half.

@Ben Leybovich That does make complete sense. How do you typically calculate your maintenance costs then?

Also, if I don't really intend to part with a property (as far as I know heh) how does one plan the exit time/price for IRR? Do I choose a guess of a time period (10 years, 20 years), and then make a semi educated guess at appreciation and price it accordingly? At this point any properties I acquire I have no intention of selling off. Granted I realize that might if I wanted to trade up, or simply shed my less profitable properties and only keep the really good ones.

@Chuck Webb They are theoretically working on changing that. They had a public hearing about it recently with some senators. We'll see what happens though.

@Ben Leybovich

Thanks Ben! I have a colleague at work who does have a rental already and isn't really planning any expenses above the here and now. I've tried to gently prod him to consider what may come up, but alas he does not quite get it. I have tried to point him here as well several times, hopefully he makes it one day!

That is totally correct on %. As we say in the restaurant industry you can't take a percentage to the bank! Do you leave your CapEx at a Dollar amount the whole life of the property or do you figure out what it needs to be and then convert it to a % to keep up with inflation etc? That is one reason I was looking at a % was so that it would grow over time as prices increase. I am also trying to figure out the IRR for it, which I know you love so much, my math is still a bit fuzzy on that though.

@Brent Coombs Sorry I didn't give enough background! Thanks for trying to draw out my thought process.

@Salvatore Lentini Somehow that never crossed my mind... That brings me to about $300 per month, depending on exact costs. I have a fairly good idea on most of the costs since we just remodeled our home at the beginning on the year. I also included a bit extra fluff for foundation issues as those are pretty standard around here.

@Shawn Ackerman Well I do like to be careful haha! So in the case $100 a month is probably enough for basic maintenance as well? We do also have wonderfully high property taxes here which is a bit sad. On the other hand at least we don't have an income tax.

@David Faulkner I have thought about the immediate need CapEx projects. I don't quite know for sure yet on this property the exact age of everything, but I know that does need to factor in. I am waiting for their agent to get back with me. Certainly rules of thumb can be dangerous, I have found in the restaurant industry they can be a helpful place to start so long as they are not your foundation though.

@Brandon Sturgill That makes tota sense. I certainly don't want to under estimate and get bitten, I also want to make an accurate estimate of my cash flow, so I don't miss a good deal or tie up too much cash. I partially choose $200 per door because I've seen a lot of people mention $200-$250 for large Multifamily and I've seen people in my area use $200 per single family. From what I understand the property is in decent shape. It has been somewhat rehabbed, but not brand spanking new either. 

@Max T. It would indeed add up quickly! That does make me wonder if I am aiming a bit too high on it. I am not planning on taking any cash out of the cash flow to "pay" myself at this point. It would be used solely for pouring back into the business. So if something big came up before my CapEx reserves were high enough I could pull money out if need be.

@Brent Coombs No sir, they are currently at 2,000 a month.