All Forum Posts by: John Collins

Realtor accidentally listed one of my properties on the market instead of for rent (one I had put a lot of work into) and the offers were well above what I expected. Could have sold with a 60kish profit but it was a marquee location so would rather have tenants renting it out. 

Unless you have a blueprint where you can flip a minimum of 12 houses a year with a 40k+ margin on each, you're just working for money with no real long term income after buyer's sour or you no longer wish to work. Renting allows you to play the cash flow game, refinance, get out when you need to and eventually have a hefty income stream after 15 years where you only have to expand when you need to. 

Is there an MLS search to do this? Sort by the last week, the last 2 weeks, last month, etc?

REIPro and Propstream do not have it. Seems every software has something for recently sold, but not recently rented. 

What are everyone's thoughts on concrete overlay for swimming pool area's? The surrounding deck area and coping? Is it a worthy look that will stand the test of time or something that fades and looks cheap after a couple of years... the price is not that much cheaper than removing the existing tile and putting in new tile so I just want the best possible look. 

No, and it's not a war.

It's select targeting by drones with the US protecting their interests in Iraq, NOT Iran. Right now the missiles being fired by Iran are purely symbolic, they have been firing them at bases for over a year now. 

Loans for commercial (5+) compared to residental (4 or less) multifamily differ and even though you have agency loans and subsidies, a large downpayment is required and therefore you go into syndication or partnerships which are a bit of an unknown for many new to the game. 

To clarify, when you say cash on cash, you are only including the X amount you paid for the downpayment and your NOI is Annual Rent - Annual Expense including tax/maintenance, right?

Going through here I wonder if everyone has the same calculations for same terms.

For example

I pay $500,000 for a duplex, 20% down. 

Interest on $400k at 4% -- $16,000

Generate $2.4k/month rent per unit, $57,600 a year. Take away 1 month each for vacancy. $52,800

Operating expenses are $10k in tax, $3k in maintenance or fee's. $13k. 

NOI - $52800 - $13k - $16k = $23800

Cash paid = $100k

CoC = 23.8k/100k = 23.8%

Is this your general formula? 

Depends on the neighborhood, crime, schools, what do people who live there do for a living etc. 

If you know about developments and see growth coming to light ... along with appreciation and demand , can add value to it and raise rents, then at $425 it's worth doing more due diligence on. Even as is with stagnation, demand in the $600-$1200/a month rental market is always going to be strong. The good news is it's new so maintenance will likely be minimal, but why are owners selling so quickly? Investigate beyond the #'s!

 Do they refinance after having finished the deal? Or not finance at all? 

Off market, foreclosure, low bid. At market or turnkey isn't giving me the margins to be worth my while. Overdevelopment for the wrong class of renter has led to stagnation. 

If retired, I would meet with agents in different area's and ask them to keep their eyes open for you, as an all cash buyer you would be given preference in case of bidding wars or someone who is hesitant about selling. Can contact owners before auction but your margins can get to double digits that way. 

Otherwise midrange multifamily commercial (5+unit), whether your personal funds or syndication, is doing very well in all markets. 

I am. Struggling with high end rentals .. in the process of selling to go more mid range which are doing well. The market is like a thrift shop, you have to comb through a lot of junk to find a deal that works big picture and with the numbers. Looking at the south - texas, georgia, virginia. Cal is not worth it outside of flips or new dev unless you want to pool together for the multi families. Eventually there are going to have to be more options for middle class rent - will more multifamilies be licensed to go up over exisiting buildings? Which segment will rent caps disturb the most - landlords or tenants? 

As far as real estate vs stocks - with a certain percentage down (depending on your income) you'll get low enough interest to cash flow immediately. You also have an asset you won't be paying off after 10-15 years. I don't count on appreciation but I like to know I can generate income after 50 without having a job job. @Arthur P. I don't see the point of going all cash if you are using it as a rental?