All Forum Posts by: Jonathan Wildy

I’m being quoted 145k / unit in Kansas City to build a b grade apartment building. This seems beyond crazy and like they are taking me for a ride on a 30 unit building. What is normal at this point?

I’m buying a 4-plex... maybe. It’s Friday and the seller now says the person not paying utilities is ‘supposed to be out Monday’ as they don’t pay rent, no deposit or other. They have said two were leaving ever since I tied up the 4-plex but now I learn this person may not leave?! The property appraisal is 95k and I’m buying at 92k. In my thought process, I won’t close until they are out and locks changed. With my manager present. The rental manager threw tenant in the building at cheap or no rent last minute and I have no idea why someone would be so stupid on a residential property that has no bearing on rented or un-rented units. In Kansas, I hear it can be 3-6 months to get the sherif to evict and courts to backup. I also said the owner can give a $6k credit at closing if they want to make it my problem & id take $2k to the tenant and ask them to sign a notice of immediate vacancy and they leave. Otherwise would anyone close on this kind of “deal”

It is an S-Corp.. first in series is me but second will be partnership.  All separated banking.  

Am I really supposed to buy 16 versions of fresh books or quicken to get some system for taking care of my rentals? I feel like I'm reinventing the wheel with spreadsheets and having to have 16 files for each different llc and bank account. It is just starting to add up. I have 8 SFR's, laundromat, commercial, close on a 4 Plex this week, and looking at a few more places in the coming weeks. I need something better. Does anyone have a spreadsheet system they would share? Is there a program that will help manage like cozy but allow all the different bank accounts, EINs, Business names. The last thing I want is horrific accounting and tax issues because this process isn't working but then even cozy requires multiple steps of log-ins and passwords if I do the process through them. PLEASE HELP!

@Katie Miller I wanted to get 2 more units this year as I have 8. I’m now under contract on a 4-plex. Doubled my goal in month 1. Best part is no money down plus I’ve $200/unit in cash flow.

It looks like I could do another couple single families homes using my current leverage. Afraid to grow too quickly though.

Calling all smart people! I have 8 free and clear properties but have a lack of $$ to continue and talked to a bank I have used in the past. We are doing a hypothecation agreement using two properties I own as collateral and mortgaging the 4plex on a 10yr business loan Amortization. The benefit is I can leverage 80% of the ltv indefinitely at the same rates. They’ll also give me an opening Line if credit should an issue arise. So zero down deal, nothing invested on any side. 5% loan. 1900monthly rent and payment over ten years is $800-1000 with ins and taxes and no pmi. The two properties I am offering as collateral I have in one llc and I’m using a new llc for the 4-plex. What am I missing? I know capex and a few repairs I’ll have to do early but is hypothecation normal or done often? I have enough cash flow with multiple paid properties but just want to ensure I’m not really doing something strange.

@Nathan G. Right if they have a voucher to cover a $600 place the govt says they can’t afford a place bigger... why would I say ok come live for free because my expectation is they aren’t going to pay anything and then wait for me to evict them and even worse... if I say they aren’t paying then said voucher goes away and I get zero. I also get no help I. Evicting a bad tenant and the govt doesn’t pay a deposit. I think it’s the worst program out there. Thankfully most of my properties are very old and do not qualify for one reason or another.

@Jordan Berry I do but it’s in such a small town I won’t turn a profit until the equipment and buildout loans are paid. I’m supplementing the utilities and insurance as it stands. I built the right size for the town but it’s still not the best investment I’ve made. 4 years to profit :). I have a loft above in the building which will help make the building turn a small profit when we are able to get it fully rehabbed in the next year. Everything in time. I keep thinking after 4 years I should be enjoying the fruits of labor but real estate and business are a slow build for me.

When you are doing your profit and loss do you do all individual properties and the group as a whole? I have all my single families in one llc. I’m hoping that at some time I’m able to leverage this or sell and 1031 into larger units for less single families. Does anyone have a sample of your end of year statements? I’m having trouble developing something from scratch.

I see more and more tenant friendly or landlord horrible state laws. I have had to take two ESAs non-disclosed at time of lease signing this year. How do I make a set of criteria that seems so crazy no one lives up to it but I pick the most qualified? Or, do I have to have someone qualify based on the criteria? Kansas City is now trying to pass a rule that a landlord must accept HUD and other vouchers for rent.... I don't see how if the voucher is $600/month but the rent is $1500 for that place? To me it's a no brained that the person can't afford to live and pay the bills? I'm not in KC yet but I think this new development will keep me out. So, I'm looking for a standard set of criteria and then is it possible to overlook a criteria at discretion or does that negate all criteria?