All Forum Posts by: Account Closed

Haha! On that note, I stopped contributing to my 401k last month to help save for REI.

Hey, that rentometer is a very useful tool. Thanks!

Question for all of you: How would they know the reason that you chose one applicant over another? How are these antidiscrimination laws enforced?

I am struggling to come up with definitive rent prices for multifamily properties I am looking at. How do you determine what a place would rent for when running your numbers. For some of these low cost buildings, a difference of 100 dollars per unit is the difference between 10% and 20% CoC return.

Originally posted by @Kelly Conrad:

@Account Closed It's going to be rented before I can get the license it seems...it looks like you have to complete the class before you can schedule the inspection, which sucks. I can't wait that long as it's completely unreasonable to do so :-\

In case anyone is curious, here is the info from the City of St. Paul: https://www.stpaul.gov/departments/safety-inspecti...

It also looks like there is a Crime-Free class which when completed, apparently if your tenants are causing problems an officer will come out and completely remove the tenant? It was required in Coon Rapids and they thought St. Paul required it too (not seeing that anywhere, maybe it's a chance coming soon?). It looked interesting either way, but definitely not major like this Fire certificate... https://www.stpaul.gov/departments/police/crime-fr...

That would kill me if I just bought my first rental and then had to sit on it empty because they only offer a necessary class every few months. I guess this means you DO YOUR HOMEWORK! I would call someone from the city and see what your options are.

Originally posted by @Kelly Conrad:

looks like before you can schedule the fire occupancy check you have to complete the Landlord 101 class, which isn’t super clear on their site...next class isn’t until January 2018 and so I’ll have to keep my eyes peeled for the next scheduled posting

 So in order to rent a property that you just bought, you have to complete a class that is only offered quarterly? Am I reading that right?

Originally posted by @Todd Dexheimer:

I would say cap Ex should be $150 minimum on a duplex and repairs/maintenance should be 12-15%. Also, what about water and trash? Management? City fees? Vacancy is really only 5% on a duplex? To me this looks like an ok deal, but closer to 10% cash on cash

Take a look at the second calculation I did. Then with $150 capx and vacancy at 10%, it is much closer to 10% CoC. Which isn't too bad, right? Would you offer less to get your CoC return up to around 12-15%? Do you own property in Duluth?

@Bob B. 

Lack of experience with this, I suppose. I am thinking that since the property would already be collateral for the main mortgage, that I couldn't secure multiple loans against the same property. Can I secure the personal loan from my grandpa with just that portion of equity in the property? In the event of a foreclosure, would he then be paid out by the bank?

One thing that I've changed about my calculator that wasn't factored in before is closing costs. That is going to hurt your CoC return a little bit. Did you roll it into the mortgage?

Closing costs brought me down almost another two full percentage points. 

My broker is telling me that if I get a loan from my grandfather for  a down payment, that it has to be secured against real collateral! I saw somebody on here saying that you wouldn't want to do that. What is the truth?