All Forum Posts by: Will G.

Good move talking to p.m. co. 

is your prospect really wood framed? is there any extra steps needed for termite control? 

I have heard some florida cities mandating periodic "safety" inspections on structures of a certain age.

anything like that there?

taxes, insurance,repairs and maint, management,vacancy, bad debt, evictions, utilities, snow removal, landscaping, pest control, capitol expenditures, licencing, any municipality required inspections, corporate entity expenses and annual reports, and thats all i can think of.

Maybe don't think of this like a bond because you are purchasing risk as well as an asset, and should not be taken lightly! Another expense... 3 million dollar umbrella to mitigate some risk!

20% expenses would be a dream if real! Any multi appraisals i have had done include a management expense typically 8%, they also include a reserves line, sometimes .10 cents to .30 cents per sq ft or a percent of gross, 2- 6 %. On a building that old I would want to plug in 4% reserves at a minimum. 

What you need is the solds cap rate, take the gross, subtract out 35%(probably more reasonable expense) and divide noi by cap rate, so hypothetical $77k of noi @ 7 cap is around 1.1m if 7 is your cap rate?

Loopnet does post some solds and you can see list price cap rates for your area. If 7 is close offer $1020

I would suggest to stay away from memphis as it is the eviction capitol, and generally has a terrible reputation on this side of the state. Look at the realtor.com article just came out on small cities poised to be big, Knoxville,(i am in suburb of knox) made the list so it must have some merit:)

https://www.realtor.com/news/trends/small-cities-could-become-next-powerhouses/

look on airdna for rental data, just be aware the explosion of hosts has created a glut, and low prices in some cities, so it is a very competitive environment.  The angry replies might be from hosts who have seen bookings fall lately 

op ex seem so low, not sure why mgmt is subtracted from expenses?

Don't see a reserves line, or pest control, any landscaping to tend to or sewer fees?

What is sold comps cap rate?

the bond bubble created by fed purchases,(quantitative easing) popping, the 65% higher corporate bankruptcies this year, rising interest rates causing 15% of us corporations to not even be able to afford their debt, more debt now than in 08, swiss central banks purchase of 80 billion in us stocks with freshly printed money, bank of japan's printing $4.5 trillion, the artificially low interest rates of the last 10 years and the mal-investment it has caused, auto loan, student loan, credit card debt records

The illusion of unlimited paper money can go on forever, as long as nobody panics and try to run for the exits. So relax and have a nice day.

entire u shape kitchen, with pre assembled cabs from h.d. $2300, installed myself

@James Clifford What market are you in? How are the mod prices per sq ft compared to site built? I have found prices are the same as site built, or maybe a little higher. Still waiting for an appraiser to chime in on long term values with the modular, and if they are looked at any differently (value wise) down the road.

dang, $168 to show up! Were they licenced plumbers, electricians and legel Secretary all in one? Whta was the name?