All Forum Posts by: Dave Arneson

Hi Guys, 

I am looking for more of a macro level model where I can put in the details of our current 11 properties and forecast the portfolio better.  So I am looking to see if anyone has one already built out so that I don't have to build one from scratch.  

Looking to model out a Hold portfolio. Thx! 
 

I would love to connect with any other folks who have actually invested in this company? 

I am an initial round investors with S2A Modular and I'm not super impressed with their results or there current round of antics to try to convert the initial LLCs (and their Members) to a dilatable class of shareholders. Meanwhile the two founders are claiming that they will remain 50% shareholders regardless of how much they dilute the investor base to raise more capital to fund the development of additional factories.

Their business model should be sound but their capital raising and approach to fund their growth and their treatment or lack of understanding of shareholders rights is snag for me. They could provide the Bigger Pockets hands on wealth building community massive value with apartment building solutions all of the way down to backyard ADU solutions.

The challenge remains the same; can you design something that you can get approved in your town for an all in price for site work and vertical building that is economical and that you are willing to pay?  In CA the contractors have gone nuts and are practically charging the going rates for the real estate sales price / square foot.  In Berkeley a contractor said that his last project was delivered at about $900 / sq ft so yes labor and bureaucracy are high but at $900 / ft what value is the guy really delivering, if any at all. 

If you are or know of any other investors I'd love to connect, please DM me.

Hi All, 

What is the best way to look at all of your portfolio?  I want to model out rental income, debt pay-down and asset values for 11 properties and 41 units. 

Best, Dave 

Hi Tausen, 

The things to understand here are that different property uses will drive different answers from lenders and different lenders might give you more grief depending upon what rules their company follows or puts into place. 

For your situation since you stated that you are just starting out and that you have amassed $100k (great job!) but your income is low for lending terms, so here are your options. 

You can go Owner Occupied (3.5%+ down) or Non-Owner Occupied (requires 25% down) in which case you'd be maxed out at $400,000. As you will quickly find $400k barely gets you are duplex in the Eugene, OR area so your best bet is to look at an owner occupied 4 plex. This way you have 3 more doors worth of rental income, docked by 25% goes towards your DTI and your Housing Ratio.

Illustration: 4 X 1,250 = $5,000 * 75% = 4,000 / month - 1 unit for you to live there = $3,000 in debt coverage.  So for a $550,000 purchase that would put you at $2,949/month with $88k down / .625% property taxes / $1,500 per year in insurance at an interest rate of 5.203%  

In Eugene you will have to hunt and it might be an older builder building with weird or smaller units but those are roughly the numbers that you'd want to start to factor for in more detail.  If you had more income or more down you would have more options but as of the limited info of $25k / year and $100k in cash you best bet would be to try to eliminate your housing costs and basically live for nearly free as an owner occupant.  Hope that helps you as you are getting started.  Dave 

I am looking to acquire 4-8 multi-family properties in the next 12 months and I am looking for a model to forecast out all of the factors as far as initial rent vs. market rate rents, equity, rehab costs, debt service, debt balances.  It seems complex but I'm sure that someone on here has already figured this out and might be willing to share their model?