All Forum Posts by: John Stewart

I will try to make it!!

look forward to meeting everyone

@Daniel Beaulieu Thanks for the great advice. I plan on doIng a BRRRR actually, but my analysis Is causing to freeze. I’d love to meet up actually, my number is 6158403860

@Jeffrey Holst Thanks for the tip, I have started calling around. Do you have any lenders you’d recommend?

@David Grabiner Can I find these loan products from mortgage brokers, banks, Fannie Mae? I have not been able to find those type of financing structures around here

@Brian Garrett Yes that did help, but I have also talked to a few lenders who would only do 20 on this type of property

@Michael Garofalo Thank you for the reply, it definitely helped me look more accurately at what I have

@Quinyana Mosley It was for me! For the cost of lunch and a couple drinks I got about two hours of time with a multi millionaire who walked me through his deals. Still haven’t close one but it gave me some good ideas about a subject I didn’t know much about.

@Quinyana Mosley I’m in the same boat as you, actually posted something very similar to you a few days ago. One thing that I don’t think anyone specifically covered here yet was to network with someone who syndicates deals. I took a local syndicator to lunch a few weeks ago. Learned more that I had from any other single source (besides BP of course).

Originally posted by @Oscar Beteta:

@Michael Garofalo

I'm curious, where did you get your % from for the operating expenses?  Are you including maintenance/repair expenses in with your 12% capex expense?

I'm in a similar boat as you John.  I am just starting out and am starting to analyze similar properties in the Philly suburbs.  In more cases when estimating operating costs, I'm getting between 45 to 55% of the rental income.  In a few cases, I've gone up to 60%.  Are you using your own excel spreadsheet or the BP calculators?

 I am using my own spread sheets, I’m pretty good with excel and have made one that does all the functions of BP.

Often owners will provide a years worth of p&l from which I pull the expenses. I’m just using their numbers with their asking price and trying to see what would make it a good deal. 

Hello guys,

I've never pulled the trigger on a deal before, in part because I don't have all the capital lined up just quite yet but mostly because I am not confident in my ability to analyze a potential deal.  

When looking at a property initially I use the 1% rule to weed out the fluff (in my market, Chattanooga TN, there are plenty of properties trading about 1% or higher).  Then I subtract half of the gross monthly, per the 50% rule, to see what is left to cover the mortgage.  I've pretty much used 15 year term as base starting with 0% down (just to see) and gone up to determine what amount down makes it a good deal.  Every property I've looked at requires a massive downpayment, like 30% or more, in order to meet the $100 cash flow per unit requirement AND cover the monthly payment + 50% monthly expenses allowance.  

I understand deals are scarce, but am I missing something? It feels like maybe I've mixed it up somehow.

Every property I've looked at has been a residential multifamily property, 2-4 units.   

Would love input from people who have done deals and gone through this.