All Forum Posts by: Jesse S.

@Greg Dickerson Can you expand on "Velocity of Cash vs Cashflow"? 

First let me start by apologizing for not searching before posting.

I have a test tomorrow on Cloud engineering and didn’t have time to search... yet I am here posting.

My question is based on what it cost to buy multi families in dc (est. $1 million before renovations. Is it a better option to purchase renovate and rent of overhaul and offload individually.

From initial calculations condo conversions are about 25% more (please correct me if I am wrong I really have no clue). But does the higher initial investment pay off in the long run?

The long run being selling to make 500k and investing that into a 16 unit building.

I’m curious to your thoughts/rationale and I am also curious as to what you deal acceptable contracting cost in the dc (northeast area).

Before you say “it varies”, let’s break it down like this:

Section 8:

Mid level rental:

High end rental:

Condo conversion:

Any information will be much appreciated.

P.S. I promise I will send my convoluted spreadsheet out to those who asked right after I finish this exam. Please feel free to send it back to me with your comments or corrections.

Thanks folks! Love this community

Got it. So if I am coming in at 0... I am pretty much living for free. 

Thanks

P.S. If anyone is interested in reviewing my overly complicated spreadsheet for input please send me your email address. 

I am overthinking this way too much... but I have an amazing calculation sheet.

With that said I am curious as to if I should run the numbers with 3 occupants or 4 occupants if I plan to live in one of the units.

Having a little brain freeze.

I feel like it’s not “fair” to the property if I don’t use 4 (charge myself rent) because it doesn’t give a good idea of what the property will produce after I move out in a year.... I may have just answered my own question.

Thanks in advance for any help.

@Will Fraser How did you find your CPA and how much do they charge? Feel free to DM me. 

Thank you

@Kevin Owens Thank you for that information, every bit helps. 

@Julian Orsuto Can you send me pictures of the finished product? 

@Evan Polaski are there any benefits to take advantage of for having a score of 800 or better? Or does the 3.5% remain the same? 

@Kevin Owens if i decided to hack a home... say 7 units at $1.25m as my first purchase, are there any applicable incentives for first time home buyers? 

Initially, I begin looking for a 4 unit. However, DC has a very tight multifamily market. Luckily I may be able to find something worth while at a higher price point others can not qualify for. 

Ideally I would still like to put down as little money as possible to help assist with any unforeseen events, in addition to taking advantage of any programs or incentives.