Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jon Campbell

Jon Campbell has started 2 posts and replied 5 times.

Post: BOOK KEEPING! Best Practice!

Jon CampbellPosted
  • Rental Property Investor
  • Jacksonville, IL
  • Posts 5
  • Votes 2

I am in the process of testing Rentastic. I really wanted Stessa to work, but the platform they use to link bank accounts did not work with my main business bank. So, I would manually export and import into Stessa, which is kind of a hassle. Rentastic linked right away and so far I am really liking it. I had used REI Hub and one other platform too, and I think Rentastic is going to be the winner.

Post: How much equity do you leave in when you refinance?

Jon CampbellPosted
  • Rental Property Investor
  • Jacksonville, IL
  • Posts 5
  • Votes 2

@Joe Splitrock, the other way to look at it is the other scenario and my original question of how much equity to leave in when refinancing. The general rule of thumb, or at least B. Turners metric is $200/door when it comes to SFH. Do I go for a higher cashflow or pull out the initial cash invested, or split the difference somewhere. Thank you for your question and time considering my question.

Post: How much equity do you leave in when you refinance?

Jon CampbellPosted
  • Rental Property Investor
  • Jacksonville, IL
  • Posts 5
  • Votes 2

I bought a SFH for $56.5k, used my HELOC for the purchase and then paid $40k towards the draw so I have a balance of $15,781 on my HELOC at 3.25%.

Right now my cashflow is $299/mo and an 8.4% CoC.

When I refi in 6 mo, after an ARV of $82.5k, I can leave in 30% equity, cash out $40.2k and leave $2.7k invested. That would only cashflow $96/mo

Or

I could leave in 50% equity, cash out $23.7k, leave $19.2k invested and cashflow $165/mo

What’s the best way to look at this?

Thanks!

Post: Trying to evaluate a Multi Family with a 50% vacancy

Jon CampbellPosted
  • Rental Property Investor
  • Jacksonville, IL
  • Posts 5
  • Votes 2

Thanks everyone, I appreciate all of the good advice. I live in the town of the unit and plan to do the landscaping and managing of the property. We don’t have a property management company in our town. The rents are low, and the $1,400 is what the current owners income has been at full capacity. But, there are only 2 units rented right now (for $325 & $250)/mo. Unit 1 ($450)has a tenant being evicted and unit 2 ($350)is vacant and in a rehab phase. My contractor can finish unit 2 and have it rent ready in a month for $2500. Once the tenant is out of #1, I can rehab it for about $5500. I was goin to up the rents for unit 1 & 2. Unit 1 from $450 to $525 and Unit 2 from $350 to $425. I will have spent about $8k on paint, flooring and labor for the two units. The two upstairs tenants can stay in their apt at their current rate. Once they move out we can rehab each one for about $5000, which covers windows, flooring in the small kitchen and bathroom upgrades. I just put my offer in, so wish me luck! Thanks again for the words of wisdom!

Post: Trying to evaluate a Multi Family with a 50% vacancy

Jon CampbellPosted
  • Rental Property Investor
  • Jacksonville, IL
  • Posts 5
  • Votes 2

Hi everyone! New member and first time poster here! I recently bought my 1st SFH, rented it out and have jumped right into looking at a multi family 4-plex.

I am in a relatively small-mid sized area in central Illinois of about 20k population. The property I am looking at is listed at $60k. 2 units (#3 & #4) are currently rented at $325 and $250 ($575/mo). Unit #1, the tenants are moving out, and unit #2 is in the process of being renovated. 

As it stands, my monthly cashflow would be -$168/mo with a -10.27% CoC ROI.

If fully occupied (with an average rental of $350 per unit/mo x 4 Units) we are looking at $1400 a month, cashflow at $517/mo and a 31% CoC ROI.

My question is, how do you all factor in vacancy at time of purchase? How do you use vacancy in your equation for writing an offer? 

I have a rehab budget of $5k as the property itself is in pretty good shape, needing mostly cosmetic stuff (to the best of my knowledge). 

Even in the fully rented spreadsheet, with a 25% vacancy and an increased repair and maintenance and CapX amounts, the property still cashflows at $167/mo with a 10% CoC ROI. I know that comes in under the $100/door metric, but...

Do you like the deal? 

Seems like a good multi-family to get me in the game, but I am a stone cold rookie. I read BRRRR, did a flip, made $15k profit with a partner ($7.5k/ea), bought a SFH that is cash flowing $200/mo with a 7% CoC ROI (pre-refinance), listened to 15 of the bigger pockets podcast while I work my 12 hr shift in a frozen -10 degree warehouse, and am looking to hopefully make an offer on my 1st multi-family. This has all happened in about a month!

Am I moving too fast? Am I forgetting to factor other aspects into the multi family formula? 

Any help or opinions will be appreciated! 

Thanks! 

Jon