All Forum Posts by: Josiah Cooper

@Gilbert Dominguez Thank you for your advice. We are new to rehabbing properties and making mistakes is how you learn. Lets hope its not an expensive one. However, do not think we are naive and thought this would be easy. I'll keep you updated on the outcome.

I keep it pretty dang simple when it comes to screening Multi's. When I'm looking, I like to know a rough estimate of what I'll be paying each month on the note (already have talked with bank and know int. rate along with down payment). I also know what the average rents are going in my market, so it is pretty easy to determine whether or not I will be making good CF. Once we are interested in a property, we use an app (purchased it in app store for $75 I think) called Property Evaluator and much more info is needed for this, but to keep it short, it spits out a ton of useful info such as Purchase analysis, buy and hold projections, and a property report. 

Another ratio used for Multi's is the Gross Rent Multiplier.

Good luck man, hope the info helps!

Gotcha, makes sense. Thanks again!

@Denise Evans, thank you very much for helping me better understand the appraisal process when it comes to foreclosures. I am assuming, after we renovate inside and out, the house will appraise closer to its Tax Assessment amount?

I agree @Sarah Miller in regards to correct representation. In our report, every comp they used was a foreclosure, and as I stated in my post, they used a comp that sold at $32K which drug the price down. I hope everything works out for you!

@Edward B.

@Edward B., thank you for the response. I am almost 100% sure the appraisal was "as is" so hopefully we will be in good shape. The property was foreclosed on earlier this year for $144K and the properties in neighborhood are in the $115-130K range. I'll check out the podcast that you mentioned. 

Thanks again for your replies

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Last 2 off of a online auction site.. $101K combined equity! 

Hello BP Community,

We purchased a foreclosure and the appraisal came back with the Tax Assessment at $129,500 and the appraisal price at $85,000. On the appraisal it looks like they used other foreclosures in the area for comp's (one comp sold at $32K). I talked with my real estate agent and he reassured me that it will sell in the $115k+. From what I know/read, the Tax Assessment price is usually a % of the FMV unless you live in CA, we're in Alabama. So I am just trying to see if there is anybody that has gone through a similar situation and what their end selling price was. This may be a common, but this is our first rehab so I feel like we are in unfamiliar territory. Thanks again for all of your comments.

Hello BP Community!

I wanted to get some opinions on creating a property management company for our rental properties. I have heard of people owning properties and then creating a PM company that "manages" their properties. I guess the question that I have is what are the pro's in doing that? The only thing I can come up with is that because your income properties are paying for a "PM" company, the NI will be lowered for tax purposes at the end of the year? We, like everybody else, are always trying to come up with ways to pay lower taxes and thought this might be an option. If anybody else has any insight into why this would be a good idea it would be greatly appreciated.

Thanks again.