All Forum Posts by: Dave Schimmels

Hey Jaycee Greene,

I Got the info on the cash refi.

Thanks again

 No I haven't,  how does that work? And thanks for reaching out!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Piffard.

Purchase price: $85,000
Cash invested: $33,000

Cash flow is after all expenses including vacancy, maintenance, and capx deductions. Trying to keep my COC above 10%.

What made you interested in investing in this type of deal?

Cash flow

If i were to purchase a 6 unit apartment for $280K, which fully occupied is roughly $5,050 a month. I went high on the expenses, which came to roughly over $20K. assuming 1 unit to be vacant per year (83.3% occupancy). NOI is roughly $32.7K-$38.7K (Full occupancy for the higher number). Debt service at roughly $20K. Cashflow A bit over $11K. My COC return will vary depending on my out of pocket cash.

My Question is if i have a private investor loan me $70K for 5-7 years (his terms) at 12-15% (not compounded). Lower interest rate at 12% is $8,400 year ($42K for 5 years) plus his initial investment of $70K equals $112K. Assuming rents go up 3% a year and interest rates are hovering 5% and i refinance from 8% to 5%. Now this property is in a class C neighborhood with a calculated 11% cap rate estimated. Would the numbers make sense to repay the investor in 5 years? Also, how easy will it be to refinance in a class C neighborhood. I ran the numbers and it seems i would after some value add to the property, but I'm more worried about the financing. Maybe someone has some advise? I currently own a duplex that is cashflowing at 14% COC for 2 years and i figure the more doors the better. Any help would be much appreciated.

What is a good way to get accurate rent comps with existing tenants based on the area? I have a duplex in cleveland with a combined 2,336 sq. ft. Are the comps from the Bigger Pockets per unit figures? Each unit is $725. I feel I'm on the low end, but my COC return a year later is roughly 14%. I've been updating things that need it and lucky enough, I can do the work myself to keep cost down for now, only because it be my first rental.

any advise would be much appreciated. 

Thanks

Dave's Drywall and Home Repair, LLC

Schimms Construction, LLC

GIVE US A CALL AT 440-477-9074

ask for Dave.

Thanks

Thanks, I've heard both ways.

Should We stick the security deposit in a business savings for the property or a trust? Tia

Question: If I asked a family member for a $25K  down payment on a $100k purchase and offered a 15% on his investment, but were to hold the property for 3-5 years. Would you compound the 15% yoy? I think obviously the value should be definitely higher and refinance if applicable to pay back his 15%. I hope this makes sense for someone to answer. I'm a new investor trying to gage  in another purchase in the future. 

Thanks