All Forum Posts by: Judy C.

@Chris Torbert. Did you ever have any luck finding a small multifamily property?

Thank you Kevin & Christopher for your votes of confidence. Clients like you are the reason we love what we do!  I have enjoyed working with you both and am looking forward to continuing the journey with you!  

Wow Ben! I agree that you made a great buy on that one! I would estimate a higher cap rate for that area but there is still great potential. To figure value based on cap rate, you basically just look at the estimated property income less operating expenses (taxes, insurance maintenance, management, and any others) to determine the estimated net operating income. Then you assign a capitilization rate. This is basically is the % of Net Operating Income that an investor would expect as an annual return for that property and would entice them to purchase it. On older properties with deferred maintenance, they would want a higher return. On a nicer, newer property they would be willing to buy with a lower expected return. You learn the going cap rates from comparing similar sales in the market. You could estimate $1700 x 12 less 10% vacancy so $18,360 projected income. Expenses of Taxes-$3431, Insurance $1,800, Estimated maintenance $3,000 Mgmt 5% $918 for a total of $9,149. That would make your NOI $9,211. If you assign an 8% cap rate it would indicate a value of $115,138. 7% would be $164,482. The amount you rent it for is very important if you plan to refinance or sell because it is an indication of value to lenders or other investors. I would always figure in management fee even if you plan to self-manage because there is a cost to it to hire someone else or to invest your own time that could be spent elsewhere.

I am sorry I dropped the ball Miranda.  Sometimes in a small business everything starts growing quickly and you find yourself unprepared!  It ebbs and flows for sure.  I apologize that I couldn't keep up with everything and let the possibility of us possibly working together slip through the cracks.  Hope you are doing well with your venture.

Congrats Ben!  It is really impressive to see someone still in college getting started with investing!  I wish I had started when I was your age!  If you want, I will take a look and just give you my thoughts.  If you want me to, just send me the address and I will take a quick look. In Abilene, Texas commercial investing, usually the most challenging part is to keep it leased.  The market is good, but there are still a lot of vacant commercial buildings available.  Sounds like a good buy though!

I agree with all of the advice posted so far!  I couldn’t agree more with jumping in and taking risks and putting money on the line.  I definitely don’t like losing hard earned money and find it very motivational to risk losing it.  Experience is definitely the best teacher.  Bad decisions are very educational and lessons that you don’t soon forget!  These are really all great answers pointing out key strategies for real estate investing.

@Stephen Benson I would be careful, there is some misinformation in the post.  If a professional attests that the tenant requires an emotional support animal, there is no training or certification required of the animal. 

In ADA which applies to all businesses, only service animals are allowed but in housing (FHAA) and airlines (ACAA), the right is also extended to disabled persons that need animals that only provide emotional support. 

The landlord does not have the right to choose the professional who writes the letter verifying that the tenant requires a service animal (including an esa).  They can’t disregard it based on where the tenant found them- such as online.  The tenant does not have to disclose prior to application approval that they require a service animal in order to prevent discrimination.

If it would cause a hardship and your insurance may get cancelled, HUD expects you to look elsewhere for insurance. If you can prove that you did without success, you may have a stance. Keep in mind that Hud has filed discrimination lawsuits on other landlords who have refused to take pit bull emotional support animals. Actually, there have been many lawsuits filed with different outcomes. I hope we have more reasonable solutions and clarity soon. The landlord cannot require that the service animal be neutered. I don't know if it is legal to require insurance but I would get legal advice first.

  With all of that being said, we have seen so many people lie about a disability in an attempt to use this as a loophole to get landlords to take vicious breed dogs. Not only is this dangerous since many of these dog breeds have the highest fatality rates in attacks on people,  but it is also extremely unfair to disabled individuals who are truly in need of service animals.

I am sorry to have to post this.  It is extremely frustrating for landlords and is hard to swallow but this is my understanding from extensive research.

There are two different authorities on this matter.  

1.  The Americans with Disabilities Act which applies to all businesses. ADA does not recognize emotional support animals-only service animals.  This means that Emotional Support Animals aren’t required to be allowed in restaurants, movie theaters and other businesses but it is required that an animal that provides a service be allowed.  For example, a seeing eye dog is a service dog.  Business owners are not allowed to ask questions if the disability is obvious.

2. HUD applies to housing providers and airlines. HUD allows all service animals and also includes emotional support animals. In the case of housing providers, the landlord is allowed to gather more information. This usually involves a letter from a professional stating that the tenant has a disability that requires a service animal which may be an emotional support animal. If it does not cause an undue hardship, the landlord is required to make a reasonable accommodation such as allow the service animal even if they normally do not allow pets or this type of pet.

There are more details to consider, but this is a good overview.

If you have already experienced success in investing in real estate, what do you attribute it to?  What piece of advice would you give to someone who is just starting to invest in real estate?  Any tricks or tips to share in finding deals, knowing that they are the right deals or acquiring them?  How about making them work or disposing or them?  I want to hear your secrets!😋

@Okeoma M. I hope you are happy with your Abilene investment.  I realized that you are one of my clients but I haven’t had the pleasure of meeting you!  I know you have worked with Courtney.  She is my right hand woman!  It is true that small multi-family properties are very hard to find but if you are still looking I will keep any of you guys posted as they come up if you will let me know if you still have an active interest.