All Forum Posts by: Karl Sannicks

@Ned Carey 

Thank you Ned!

Ok, sorry for the Three Dog Night reference. I am looking for someone to help me zero in on a strategy to restart/kick start my REI business for long term sustainability. Keeping it simple for now. I am glad to fill in the detail. Thank you in advance!

Thank you all for the replies to my posting.  I used the BP rental property analysis tool.

Here are the particulars on the deal: 10 SFR properties, asking is 599,900 with purchase offer at 575,000 after initial negotiation. Originally offered 509,000. If all homes sold for last purchase price, portfolio would go for 587,791. 5 SFRs are 3bd, 2ba. 5 others are 2bd 2ba. All remodeled in last 2 years. All are rented and there is room for rental increase. I attributed a vacancy rate of 15 percent in my analysis being ultra conservative to protect myself. Utilities paid by renters.

Total Rental Income/mo = 8724

Vacancy = 1308

Property Taxes/mo = 625

Repairs = 872

Management = 698

Insurance = 643

NOI = 54,925

Monthly Cash Flow = 4577

Cash on Cash ROI = 9.51%

Cap Rate = 9.55%

@Andy Mirza - I am used to LOI's as well, especially for MF purchases, the option to purchase is very similar and gains the same result.

Again, thank you all for your comments and feedback.  Hope this helps and I thank you for helping me.  Let me know if you need more information.  Thanks!

I have a deal that I have analyzed with a 9.55 cap rate.  All the properties within this portfolio are rented.  I am just starting back up and need to know if I should proceed or "due" more diligence.  I am going to start with an option to purchase that allows that opportunity, but I don't want to lock myself into an unreasonable offer price until I am confident in the right number to offer or walk away.  Any help?  Suggestions?  What do you need from me?  Thanks in advance for the help.