All Forum Posts by: Irwin Haddox

I would start by looking at the after-repair rental rates for both 2 and 1 bed units, multiply that out by your 10 (2 bed) and 10 (1 bed) units to get a total monthly revenue.

Then, figure out the cost of repair per type of unit (~10-15K/unit depending on finishes and extent of repairs necessary)

Figure out the cost of repair for common areas (exterior, hallways, parking, main utilities, etc).

Use common metrics for operating costs (10% management fee, 10% repair, 10% vacancy etc, 10% capex, etc.)

Then figure out the NPV of the deal with both of the financing options to see what works better for you. It seems like they are essentially charging you 6% interest if you finance it... so if you would be doing a commercial loan, you would use that interest figure to compare against their rate.

10% for cap ex? your roof needs replacement in 10 years at 850/month rent your roof eats all the cap ex no room for appliances, floors, walls, paint, fixtures etc. i dont see the numbers working our in this case.

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Buy and hold in cheap real estate markets. DO NOT BUY PROPERTIES IN FULL!! Always take out mortgages for positive cash flow. With any luck you should be able to replace your current income and become financially independent/retired. Then after 30 years your income should more than double (or if you want you can just pay off one house at a time using the positive cash flow.)

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I think If you use a 401K to finance the property's you can't withdraw on the profit until you are retirement age or else you will be penalized. The government sees real estate just like any other investment its a good long term strategy to maximize retirement but not good for immediate passive income.

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If you look around you can probably find one online just add the extra terms into it and have it checked by a lawyer.

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All Forum Posts by: Irwin Haddox

Irwin Haddox has started 5 posts and replied 24 times.

Post: Help analyze a property.

Post: How to Invest $600,000

Post: Self directed solo i401K advice needed please

Post: Wholesale Contracts