All Forum Posts by: Francis Dayamba

I am planning on buying a small multi-unit property in NE or SE DC by "house-hacking" to make the purchase. My friend (future business partner) and I are looking to raise the funds together and then we plan to transfer the property over to a LLC.

1. What are my personal tax implications before and after the transfer to the LLC?
2. Can my business partner also receive some tax benefits if the house is purchased in my name?
2a. How do we do the deal so my business partner can benefit from depreciation write-off or other tax benefits?

Francis
 

I am considering house hacking a multi-unit apartment or a Single Family home (with basement) in DC. When conducting tours of the perspective places, I am not sure how to estimate repairs for major items. I have heard on podcasts that you can ask for prices from Home Depot or similar stores. But I want to be able to generally estimate cost of repairs on the spot. I have also read the biggerpockets articles about estimating repairs.

What are reasonable ESTIMATED costs (material+installation costs) for repair and the general lifetime of the following items:

Tar Roof-Cost per SF 
Shingled Roof-Cost per SF
Water Heater sized for 1 bedroom units
Foundation
Furnace
HVAC
Kitchen
-Granite Counter Tops
-New Cabinets
-Sink
-Refrigerator
Bathroom
-Toilet
-Sink
-Tile floor
-Shower or Bathtub

Major Electrical Issues
Major Plumbing Issues

Thanks Jon,

I will definitely reach out to you. I graduated from Iowa State with my Masters in Civil Engineering 3 years ago. Throughout my time at Iowa State, enrollment at ISU increased significantly to the point where my friends were struggling to find housing. I have kept in contact with some friends and a number of them said rent has significantly increased in the area.

So to answer your question, I am looking at buying property in Ames because it is more affordable than DC, the market seems to be on the rise and I am familiar with the Ames.

Francis

I am partnering with a friend of mine to buy a property. We will both be providing Cash (either a 40/60 or 50/50 split) but I will responsible for managing the property and he is more of an investor. I will be the sole person on the deed. 

What are the types of topics that need to be laid out in a formal document that we sign that outlines are business partner relationship? 

I am considering buying a Single Family residence in Ames, Iowa and I have a few questions:

1. What rate would you charge for a Property Manager?
2. What services would you ask them to provide?
3. As an owner that is not on the ground, what sort of things should I take care of myself?

Sounds good!

I am considering buying a condo in the Arlington area as an investment property. Just because I am familiar with the area and I know what rent goes for.

I actually live in Rockville though, so I keep an eye out for deals in that Rockville/North Bethesda area.

It seems like my generations values proximity to metro, grocery store and decent appliances.

Good Point Russell!

In this area, what percentages for vacancy, cap ex and maintenance do you typically use when analyzing a deal?

Also, what percentage do you look for as ROI on your down payment?

Francis 

Thanks Brandon for your response. I definitely value your feedback.

If you use percentages of 10% for Vacancy, Capex and Maintenance, an apartment that rents for $2000/month (600$/month) would require putting aside $720/year more than an apartment that rents for 1,800 ($540/month) .

That is a significant amount. Do you think that is accurate if the only difference between the condos is location?

Why do you feel that vacancy costs are tied directly to rent?

When I analyze condos for deals I am looking for a 10% return on investment. If I assume 10% for vacancy, Cap Ex, and maintenance it would be tough to be able to achieve that number. What percent return on your money are you looking for when buying condos?

I am looking to buy my first investment property and for this area (Surrounding DC area and Northern Virginia) the only thing I can afford is a 2bed/1ba condo or smaller. I am having issues estimating how much to put aside yearly for Vacancies and Cap Ex repairs.

Should I put a percentage of my rental income aside or should I pick a set amount? The reason I am having trouble with this is because when comparing condos, chances are they will have the same Cap Ex and Vacancy numbers even if one is more expensive than the other. If I use percentages, than that would change based on the selling price of the apartment.

I am currently working Part-Time as a Leasing Agent and I have just passed my VA Salesperson license so I will have access to the MLS within the next month. I am looking to work with an experienced Real Estate Investor to help increase their sales.

The Skills that I bring to the table are:

1. Very good knowledge of what apartments rent for in the DMV area (I work with a company that owns and rents apartments in the DMV. I show on average, 4 apartments a week for the last 5 months form Arlington, VA all the way up to Gaithersburg, MD)

2. Within the next month, I will have access to the MLS. A lot of investors complain about real estate agents being lazy but I will focus on being a real estate agent suitable for investors. I will run comps whenever needed, in a timely manner.

3. I studied construction management in school, so I would be able to coordinate the management of contractors when performing work.

4. Good Knowledge of the up and coming areas in DC.

If anyone needs help growing their business in the DC Metropolitan area, please give me a shout out. 

Francis