All Forum Posts by: Jeff Costa

Thanks for the feedback everyone! For two small duplexes, it seems the juice is not worth the squeeze.

Black Friday is almost here! Did you find a deep discount on a TV for your STR? Or a smart thermostat for your LTR duplex? Or a cookware set for your MTR? Post it here, and help your fellow BP community members save money!

I'll start: 

Handheld FLIR TG267 thermal camera for detecting water leaks is 20% off at Amazon. Its almost never on sale.

I am talking with my accountant about the mechanics of a cost segregation study on two duplexes purchased in 2022. He has asked for fair market values for items that will be included in the study (ex: roof, water heaters, HVAC, cabinets, appliances). This data will be used to prorate the purchase price based on the relative fair market value of each of the components. I know the age of some items, but not all (ex: kitchen cabinets, sink, carpet) items. Two questions:
1) Do you simply estimate the age of unknown items?
2) Where can I source fair market value data of components? Ebay?
3) Is it common for owners to provide the fair market value data?

Note that the accountant is not located in the same city as the duplexes, which may be the problem here. I would appreciate guidance from anyone who has done a cost seg study. Thanks in advance!

The only loan that matters is what you can get today, which is roughly 6.65% + 50 basis points. Its OK to find a bad deal, and determine its not for you. Sometimes not doing the deal is the best deal!

Keep analyzing properties and learning. When you find one that positively cash flows (even with conservative variables), you will see it.

A few things that stand out to me:

* Where are you getting the low 6% interest rate? That seems artificially low.
* Why is the loan term 25 years instead of 30?
* Do you have a written statement from your property manager that their fees are 8%
* Are you paying electricity and gas for tenants? That is not typically done.

It feels like you are trying to make a negative cashflow property become a positive cashflow property by adjusting the numbers, but I don't think you are going to get there based on this calculation.

Wells Fargo business account have Zelle already integrated.

@Sean McKee Would you mind sharing that spreadsheet? Pretty please, with sugar on top? (smile)

You can use Homewyse to get "T-shirt sizing" estimates before making an offer. Then pay the contractor on your team $100 to walk the property with you, creating an itemized list with more accurate numbers.

@Paul Moore Great to have you in the forums answering questions. I just bought a copy of your book, and looking forward to reading it. 

SIDEBAR: Does anyone have a pro-forma template for an existing mom-and-pop property? I cannot seem to find one.

@Alecia Downing You should be able to find vacancy information about your specific market on the Web. Don't just use an arbitrary number.