All Forum Posts by: Ernie Sturzinger

Hey everyone, 

I'm looking to create a budget for my 3-plex property starting in January so I can better actively manage the property manager and the property itself. Does anyone have a proforma budget that I can use for 2022 and has multiple years after that as well as way to manage over the life of the property? If so, would you mind sharing? Didn't want to re-create the wheel if I didn't have to. Thanks!

Hey Chris,  no cash is tough.  

I will make my  $10,000 for my reserve account in 11 months by doing my 5% hold backs for vacancy cap X and maintenance. After  I hit my $10,000 mark I planned to put the 15% towards another account for cash flow.  No cash flow is based off of one vacant unit if I am able to fill that unit I will cash flow $400 per month. The 1st year will be tight financially but then it should open up a decent amount. The big question is it worth it to get into the 12 unit building for the long term play of holding for retirement passive income or not pursue it and and try something else that may or may not work out. The only reason I am even considering this is because I have no money out of my pocket into the entire transaction.  I do have some personal funds that I could utilize in the 1st year if needed. 

I'm looking for some constructive feedback on whether this makes any sense or not. I am looking to purchase a 12 unit apartment building in Ohio and I am putting no money down out of my pocket. I have done the analysis and after setting aside 5% for vacancies 5% for repairs 5% for cap X and paid all of the expenses and loan payback money on a monthly basis from my from my investment account that I am leveraging for my down payment loan, I will have no cash flow technically. I am leveraging my investment account with a loan from my investment company for my entire down payment so technically I have no cash going out of my pocket. Does this make sense to still go through with even though I will have no cash flow initially and I will still be able to add a 12 unit apartment property to my portfolio that is presently consisting of one triplex? I obviously want to maximize my cash flow and return but I'm having difficulty finding a highly cash flow oriented property that is within my price range of 300000 to $400000. So this seemed like a reasonable option. Would appreciate any thoughts and feedback here. Thank you,

Hey everyone,

Really appreciate everyone feedback here. Lots of links with general and very specific location specific content. Love it! 

Can always count on awesome people here! Thanks so much!

Hey all, thanks for the feedback. I checked back with my realtor and turns out he left the line in there. We have changed the verbiage so that it reads X amount for escrow to be due X days after signed purchase agreement. Appreciate the prompt feedback. You guys are awesome!

Hey team! I am doing LOI for 12-unit commercial property. They want escrow money at 2% of asking to submit a LOI. Is this normal? FYI. This is my first commercial property I am pursuing. We didn't do a LOI with my other 3-unit property, just the written offer. I feel like LOI shouldn't require any money up front, but not sure on this. Quick background, the reason we are doing a LOI is because seller agent said to get more information about the property we needed to do this. Any feedback is appreciated. Thanks,

Hey Vessi, 

Thanks so much for the advice. Have added these sites to my list of checks for due diligence. 

Appreciate the assist! Have a great week!

Hey everyone, I am investing in a multi family properties out of state and I'm curious what website people use to look at quality of neighborhoods, crime rate, etc, when unable to be there to walk the property initially. Any insight is appreciated. Thank you,

Thanks Michael. It is on market with some basic info about it, but it does seem weird he isn't sending us rent roll and formal documents. 

Looking at 11-unit apartment building and want to get info about rent roll, leases, vacancies, etc. Seller agent is vauge and not giving us this info when we asked directly for it. We have not made an offer yet as we need this information to make an informed decision whether to make an offer or not. However, is there a specific sequence of events we should be working through for this to be easier? I wanted to find out this information before making an offer, but wondering if need to make offer first and then go through all of this information gathering after offer accepted? Any insights here? Not sure if I am expecting too much here from seller agent or not? Seems like basic information gathering on my part here, so confused. Thanks!