All Forum Posts by: Devang S.

Thanks Ned for sharing the 50% rule that's vetted by you and other experienced landlords, it does make sense. Waiting to see responses on both SFH and MFH from other folks.

Fellow BP colleagues,

So I've question on analyzing properties. I understand the answer may be it all depends, and that's okay, but wanted to understand the reasoning behind some of the unknown expenses, how you go about it. 

Specifically my question is related to the expenses related to repair, supplies, capex and vacancy. How do you go about them when analyzing the deals? Do you assume certain % of rent or some absolute numbers for initial pass? 

Of course, it depends on the property condition, market cycle, neighborhood, location etc. but assume there is some conservative guidelines that you may be using for the preliminary go/no-go analysis. Sure, some people would say this is backward, meaning you have to zero in on the area and understand as much about it as you can first, before even looking around to buy anything, but believe at some point they also need to come up with some rough numbers for these unknown expenses. Interested in your thoughts!

Thanks Stan.

Just sent PM to you. Appreciate it!

I'm looking for a good mortgage broker (specialized/understanding of RE investing) in Atlanta area. Any recommendations?

I'm looking for a good mortgage broker (specialized/understanding in RE investing) in Atlanta area. Any recommendations?

Thanks  Vaughn and Caleb, my other concern is Closing cost that seems to be close to 5% of the PP. Not sure whether that's inline with the typical market.

BP colleagues, I'm trying to finance a property via one of the lender I work with. 

Rough numbers are as here: Purchase price : $155k, Interest rate: 6%, Down : 25%, Closing Cost: about 7k (including 2k of prepaid and escrow), also Closing costs can't be rolled into the loan. Does this seem out of line or simply outrageous compared to the size of the loan?

@Noel Volin - very good question. I have done little backwards analysis, but heard there is something coming up in Miwaukee area that would create an additional 10,000 jobs. It's all hearsay, so will ask other area experts to jump in and validate such claims.

@Marcus Auerbach - Solid advice. Thanks for your detailed explanation, specifically financial modeling. It does make sense, still learning:)

Thanks Mike. Very helpful comments. I'll take up your offer once things get firmed up:)