All Forum Posts by: Felix D Menendez Jr

@Pedro Chavarria

I'm a beginner investor going after my first rental (close 10/8/21) my end goal I'm sure alot of us can relate to is hands off passive income. So I'm my analysis includes 10% for pm. I reached out and found a pm that charges 10% of only rent collected for basic services. It's worth it for me not to have to answer calls, flip apartments, deal with service request ECT... For the time being I still work a full-time W2. I think when it's time for me to retire my W2 I may take on the pm role til my old age sets in. That's great because I'm already cash flowing from day 1 when we close and I don't have to do anything. So I believe it's all about what the end goal is. And yes the pm now days use the apps and if your going to NY if it was me I would want some boots on the ground doing checkups and taking care of the calls and turn oversand such. It's a small price to pay for freedom in my opinion. It's helps that my pm is a licensed general contractor so I give him a dollar amount and tell him not to bother me unless a repair is above this amount and if under even a dollar just get it done send me the bill.

Note: I have not owned a rental before this is only my plans after I close next month so I can't speak for anyone but my ambition.

Thank you! I was definitely more in my head about doing an off market deal than I should have been. I do have someone I reach out to with questions but everything have been smooth so far.

Found a property that looked like it wasn't being taken care of. I was able to locate the owner and reach out, we spoke about the property and my experience and goals as well as the owners expectations. I was able to meet the owner over labor day we walked the property we talked more I made an offer it was countered then I countered the counter and my offer accepted. This is my first rental and is being done off market, not bad for a first timer. I had not intended on purchasing an off market property so im learning this process as I go, currently awaiting seller P&S from attorney.

Asking Price $169,999

Purchase Price $160K

Seller to pay $7500 towards closing

2 units 3,050 sq ft 12 bed 3 bath 

$2400/mo income

Monthly Income:    Monthly Expenses:            Monthly Cash Flow: Pro Forma Cap Rate:
$2,350.00                 $1,728.77                         $621.23                            8.84%
NOI Total Cash Needed Cash on Cash ROI Purchase Cap Rate
$14,147.64               $44,900.00                            16.60%                              8.84%

Some of these number have changed for the better since I ran the calculator, 

like the seller paying $7500 towards closing and my numbers are ran with me paying closing. Cash flow $620 after all expenses using 50% rule.

@Lynnette E. Tenant 3 is paying is current on rent with proof has been there 3 years. Not related to owner and not a legal unit iTs just a bedroom And bathroom with seperate entrance. Unit 3 is on a handshake agreement and unit 1&2 are month to month leases. I found out landlord pays all utilities as there is 1 meter and 1 electric panel 😩 that hurts a little. I still see positive cash flow from the numbers they given me but now not by much until I rent out all 10 garages.

I'm interested in a property with some serious potential.

Sellers agent says there has been a couple offers in the last 60 contingent on the home being 100% vacant.

Seller knows I wanted the property 100% occupied. ( I know some of you are against this )

I found out there's an attached bedroom and bathroom only with seperate entrance being rented out on a handshake agreement on the second floor.

Unit 1&2 are month to month and half unit 3 on a handshake agreement.

The property comes on a pretty nice lot with 10 car detached garages included with the sale.

I've met the couple in unit 1 they seem like a nice couple that I wouldn't mind keeping. I didn't get to meet unit 2 or mystery unit 3 occupants because they were not home when I went by. I'm told I could come back in the evening to meet/see unit 2. All numbers run in the rental analysis work not counting the 10 car garage or mystery unit 3 as I did not know about it when I ran the numbers.

So even more of a return potentially.

I get a message saying the seller knows my concerns and if I have a number that will take those concerns away. Now it's no coincidence I got this message soon after the eviction announcement today I assume.

My agent says to add that bedroom and bath as part of unit 2 just knock down a wall.

If half unit 3 is not legally permitted to be there can I legally rent it as part of the house. Let me clearify I'm not 100% sure it's illegal but it's just a bed and full bath.

If I send an low offer and it gets accepted will a management company handle evictions if necessary?

What should I ask the seller specific to unit 3 (my only main concern).

Home is sold as is seller is a 75 year old elderly woman and has own the house for decades and doesn't want to go through the process to deliver the home vacant ( I'm ok with this to an extent).

Thanks in advance for any feedback I should add this will be my potential first rental property.

@Mel Hayes I'm in the process of my cash out refinance I close Friday @ 2.99%

I need an agent familiar with western mass market if that's you come connect with me.

After I close on the cash out refinance when can I ask for approval letter so I can go make an offer?

@Tom Wagner

I have about 5-6 printed. I look every day at deals my eyes hurt lol. My cash out refi just went into underwriting today. Close date is 7/30/2021 so I can't stop analyzing till close date hope to have an offer ready by close 🤷

 I really appreciate that. I will reach out...