All Forum Posts by: Daniel J.

@Alexander Felice Right, I guess I’m just trying to figure out what is worth my pursuing or not. I am currently looking at a property that is quite nice, and very close to my home and work. It’s effectively a 4 plex, but I would probably be looking at cash flow of 300-350, but I’m putting in zero money, and the equity would all go to me.

@Alexander Felice I guess I’m a big confused with what you are saying. Though I do understand your point about just because you have more cash flow if you paid cash, it might be the same actual return on your money. 

Here is an example. Say you ideally like $100 per door in cash flow. If you were using none of your money might you be willing to consider getting $80 or $90 a door because you don’t have your money involved?

If you are using none of your money, are you willing to take smaller cash flow margins? For your profit, not paying back your investors. I realize that if you put no money down, and you make even $1 you are technically making unlimited COC returns. However, you can't take percentages to the bank. I would love to know your thoughts.

Thanks,

Daniel 

If you are using none of your money, are you willing to take smaller cash flow margins? For your profit, not paying back your investors. I realize that if you put no money down, and you make even $1 you are technically making unlimited COC returns. However, you can't take percentages to the bank. I would love to know your thoughts.

Thanks,

Daniel 

@Caleb Heimsoth They do not, these lenders are effectively portfolio lenders using their own funds to lend with. You pay more for them though. Typically you are looking at a point or 2 higher on interest, and possibly points up front as well.

@Ed Matteson Good to know, thanks! Lima looks overall attractive as a lender, but from what I’ve seen they seem to flake out at the end or take a horrendously long time to close.

@Andrew Postell The property I was looking at was possibly going to run into some appraisal issues so I was looking for alternatives to traditional financing. I was also just looking into options other than traditional or commercial financing.

@Sam Shueh I will try and post some photos. It has overall been updated, except for a bit of facia replacement needed and exterior paint. It was built in 65, but as I said recently remodeled in the last couple years.

Sorry if I was not clear. The 7k includes propane, lawn care, internet and cable, and electric. It is on a well, so no cost for water other than a bit of electric. The tank is a rental, so all maintenance on that is done by Amerigas. 

@Jack P. 20k if the septic is replaced on only 2 lots, should be around half that with all 3. I’m contemplating getting the roof replaced up front.

@Sam Shueh I was planning on doing that. They do have their grey water set up to run out separately so I think that’s part of the difference for them. I use 11% because that seemed fairly standard from what people have said. I will be self managing though.

They do not, there is only a master meter, and one propane tank. My plan in future for new tenets would be to rent for 1200 and 1100 for the other units with either a spilt bill back or a flat $100 or something to help recover that.

What do you think my CapEx and repairs should be at?