All Forum Posts by: David Hildebrandt

@David J Lepard its about negotiation at the end of the day. Based on the proposals, identify the contractor you want to work with (price not being a factor) i.e. if you feel the highest priced guy will do the best work, go after him. That helps ensure that the work will actually get completed and will be of quality. Then employ what you read in "Never Split the Difference" by Chris Voss to get them to the best price possible. Remember that with you they have the opportunity to do business more regularly than they do with a homeowner's one off project. Use that leverage to your advantage. Remember they paid Thumbtack to bid your job, they want work, which is exactly what you have to offer.

Do you belong to your local REIA? Willing to bet they have a list of GC and other contractors that are recommended by fellow investors in your town

Get a bridge loan for a few years. Until there is enough tax data to qualify????? Here is such a product from lima one capital

Good point, just assumed that was his net cash flow.

Friend of a friend built a million sq ft of warehouse on spec (no tenant lined up) two exits down from the airport/amazon. They leased it all! It has certainly been a boon to that area, helping to stoke a market that is already on fire.

I think you are a victim of a rounding error.

14533/34686 = .418 or 41.8% not 4.18%

But if you put 22K in repairs into it then your total cash invested is 56686 so

14533/56686 = .256 or 25.6%

@Brad Rondeau

Is this in Fairfield? West Chester? You said it was near Amazon.

I agree but your justification for spending the $340 was that it covered those things. My point was that dollar amount is 25% of your gross rents, which is way too much....thus no justification at all. If you did the same deal on a single family, were able to avoid the $340 (permanent fixed cost), you would budget like $180- $200 for maintenance cap ex and vacancy (only a cost if those expenses arise).

At $1200 rents, budgeting $340 a month for CAP EX, repairs is like a 25% factor.

I don't mean to be patronizing, surely you have investigated these options, but will any of these work???

@Jim Walters @Joseph Platyan At that low of a purchase price to start with, not sure dropping his offer will have enough an effect on his monthly.

If a lease is not signed and she vacated then that is the process for moving her out. Regardless of a verbal agreement that was on again off again.