All Forum Posts by: Danielle Fattizzi

@Eric Rosiello Great job on your detailed analysis but I'm with @Willie Mandrell on this one. Typically we look for about $100 cash flow per door and this one isn't quite hitting the mark! With your analysis skills, keep looking for investments that cash flow and are a better use of your time. Good luck!

@Nick Calabro Welcome! Have you decided what your focus will be in REI?

@Brandon Bellino This is how I was taught to calculate my seller financing offers when I send an LOI:

I always offer 3 options - two with seller financing and one cash option. 

Formula: ARV=NOI using actual rent amounts/market cap

This gets me the retail value of the property if it were all fixed up and occupied and this number also equals my Option 2. 

Option 1 is 100% seller financing at 5% interest. It is typically a 3% to 6% higher offer than option 2 (this is based on ensuring that the property will support the payment). This is always an appealing number since you're giving the seller the interest over time and they sometimes end up making more than their original asking price. 

Option 2 is the formula I worked out above. I offer 15% down and 85% seller financing at 5% interest for this option. 

Option 3 is all cash to the seller through traditional 3rd party financing and 25% down. This option is roughly 17% less than option 2.

Just make sure that no matter what the offer is that the property can support the payment. 

Good luck!

Welcome @Robert Smith! Love that you are focusing on the area around Wake Forest - it should make for a great investment area as I'm sure occupancy rates are very high there due to the students & alumni who find jobs after graduation. Good luck!

Welcome @Anthony Black! I am located in NW Florida so let me know if you need anything!

Sounds like you are very skilled, @Aaron Perkins and that you have a lot of paths you can take in REI! Good Luck! Stay active!

In addition to all the great points above, purchasing a Buy and Hold near a university is also an excellent idea because universities drive economies! And you want to have your investments in areas that are growing -- having all of the students around creates job growth and many times alumni get internships or long term jobs in the same cities they went to school in. 

Apartment properties around universities usually have high occupancy because the on-campus housing can be limiting and out-dated (unappealing to students) or in such high demand that some students just can't get in, so they turn to the next best option. I would check www.stateuniveristy.com - you will be able to look at the university enrollment stats and see which ones are actively increasing enrollment or turning students down. The schools that are allowing more students coupled with market trends indicating job growth are the areas to invest in. 

Welcome to Bigger Pockets, Bobby! I am new to the site myself. Focusing on Multi-Family properties. Stay engaged!