All Forum Posts by: Jennifer Baldassari

Thank you, @Josh Shaughnessy!  As a visual learner, this is very helpful!!!  

@Dan H. I see what you're saying.  That makes good sense.  Thank you for the education on this and I'll reconsider my numbers.

Thank you, @Josh Shaughnessy.  

A venue is a great idea!  

@Dan H. thank you for the feedback!

Using the BP calculator we budgeted 7% for both capex and 7% maintenance.  Your budget for cap ex/maintenance expense is 3x that?

Hello All!

We are about to close on a multi-use portfolio and have received the insurance quotes. 

The Premium price was discounted around 11% if paid in full. The monthly, quarterly, and bi-annual options came with no discount...obvious for monthly, but the question is, Is there any room to negotiate the quarterly or bi-annual with them?

Thank You

@John McKee -  thank you so much for the feedback and words of encouragment!

$2,157/mo or $25,884/annual is our cash flow after all expenses, 7% back for CapEx, 7% for maintenance, and 3% for vacancy.

It's a great area for growth -  the town is on a highway between two larger more expensive cities.  We aren't talking NYC... these are smaller midwestern university "cities" ..haha... population 100K-300K on either side of this small town.

I'm so glad you brought up the triple net leases.  For one, I have no idea how to go about utilizing them but I will learn.  Familiar, just haven't executed.  And, they are not currently in place --- so that very well may make the deal more lucrative with tenants sharing costs.  Is that how it works?

I didn't realize big cities are trying to get back to mixed use!  That's good to know.  The current owner rarely has residential vacancy (and there are 10 apartments out of 13 doors).  This downtown could easily convert back to horse, wagon and gunslingers in a heartbeat....and speaking of reverting back to the 1800's ... my husband and I are full-time taking action on pivoting to 100% self-sufficiency (large gardens, animals, harvesting rainwater, etc..) to take care of ourselves, family, and neighbors.  Well, one of the commercial spaces is vacant behind the restaurant so we were thinking of turning it into a farmers market (right on "main st") during the summer and selling our garden leftovers! :)  

What's your idea for an old fire station?  :)

Thank you @Henry Clark!!  Good information.  I appreciate it.  Have you owned older buildings? If so, would you again?

@Henry Clark thank you for the list!  We have covered some of it (mostly through our inspector) however I didn't think of the National Registry.  Is the concern there that modification to the building or restrictions or ordinances might be in place if it is registered?

@Bjorn Ahlblad great advice and you are correct.  The building is in 'good' shape for what it is but definitely has lots of room to improve.  

I guess one of my big questions is... how much cash flow makes sense for 10+ tenants? That's a much easier question to answer (for me, at least) on smaller units or SFH but this feels like a big project to take on for $2K in my pocket... or perhaps this is right on the money and a great opportunity!

What do you guys look for in cash flow on bigger places?  TKS!