All Forum Posts by: Frank Wei

Hi all, stumbled upon this thread but found it pretty interesting. 

Was curious if anybody on this forum has invested in both student housing and non-student housing and how they compare in terms of return and level of work. 

Student housing seems like it would be great for cash flow as it's rented by room and it seems less likely that students would not pay their monthly payments but there would be new leases every year and potentially higher cost every time there is a new tenant? When I was a college student, I definitely did not have the maturity to care about keeping my apartment nice/clean/etc...

Thanks,

Frank

 Concur with @Khushleen Jaggi. At least in the interim is it possible to keep both tools until the updated tool is fully rolled out?

Frank

Hi @Drew Sygit, thanks for the advice about over improving and choosing repair before replace to maximize return. There definitely seems like there needs to be a good balance of replacing only absolutely what's necessary and important to the tenant (especially taking into account of the type of neighborhood/property) but then also making sure not to forget about critical expenses so that there are unpleasant discoveries later.

Frank

Hi @Jaycee Greene, thanks for the input. Definitely agree that insurances and taxes should be accounted for but this seems more definable by talking to insurance providers and looking up previous property taxes.

Also for my understanding, when you say after-vacancy rent, does this typically mean month to month take home subtracting out mortgage, property tax, insurance? And typical operating expenses could be 30-40% of that #?

Typically, when in the process can I ask for the T12 from the owner?

Thanks,

Frank

@Jaycee Greene, thanks a lot for the info. Yea you are right that potentially rehab would be categorized as "light" or "medium". I was actually curious of ongoing maintenance and cap-ex budgets for after the initial work. 

Most of my analysis has been centered around 3 Br, 1 Ba SFR or Duplex that are 1-2 BR, 1-2 BA, each unit.

Yes, 1820 W Holmes Road is the very similar to the type of properties I have been analyzing. It has a low HOA which is less desirable but since it's so low, not a deal breaker.

Frank

@Jeremy Taggart, thanks a lot for the info. Do you mind help sharing for your estimate for the 5-10% vacancy rate, what are the factors that you consider in the neighborhood or property that may skew it to the lower range or higher range for my learning?

Frank

Hi BP Community,

I was curious how people were projecting their Repairs/Vacancy/CapEx in their deal analysis before they make an offer to see if the deal is worth considering deeper.

I understand this has a big variation depending on location, age/condition of property, type of neighborhood, etc... and there are ranges given in the help section but I have found that the range is so huge, it can make a deal look terrible or fantastic.

I also understand that potentially a more accurate representation of this might not come until after the inspection report but from my rookie lens of looking at things, this level of detail only comes after a submission of an offer.

Maybe some factors that helps to narrow down the feedback. I'm looking primarily at properties that are simple value-add or near turnkey condition, B/C class neighborhoods. Some markets I've looked at the deals are

Columbus / Memphis / OKC / Pittsburgh / Phoenix with a purchase price of 150-350k.

Hi Mason, am mainly looking for cash flow up front but understand this may be more challenging given the current interest rates. It would be great if there is appreciation at some point but that is less the focus as of now.

Hi all,

Am new to real estate investing, friend mentioned it to me in Sept 2024 and they have achieved financial freedom at the ripe old age of 35. I'm currently working in Tech located in California and am looking to connect with people who invest out of state or have experience with out of state investing.

Since I have a fairly demanding 9-5, am thinking maybe to get started with newere builds for SFR or small multi-families. Excited to meet everyone.