All Forum Posts by: Katie Panzica

New investor here.  Hoping to get some opinions on where to factor in vacancy costs when you are analyzing a deal. I’ve seen several proforma from turn key companies include it in operating expenses as a variable expense but on the DealCheck website it has it subtract off the top of operating income. Doing it this second way shows properties cash flowing a lot less. I know at the end of the day, it should be factored in somewhere.  Just curious what best practices is? 

@Landon Bleau thanks for the recommendation.  I listen to that podcast but am not caught up.  I’ll check it out!  

HI BP Community - I'm a newbie investor and trying to strategize a few different ways to purchase my first few properties. I have some funds I can use as a down payment for a SFH but to get into a multi family or purchase multiple SFHs I was thinking of working with my dad to get additional cash for more down payments and potentially also co-sign with me on loans if needed. I've seen people mention that it's a good idea to create an LLC when you are in a partnership with someone on a property and wondering whether this would be a good idea or whether it would really be needed for a family partnership or if a partnership contract is sufficient. Pros/Cons? Any advice would be appreciated!

Hello BP community! I’m a new investor interested in purchasing a turn key property since both my husband and I work full time.  I’ve been researching a few different companies and am curious what people think about trying to stay with one provider who may work in multiple markets like Rent to Retirement or local companies like Memphis Invest who have lots of experience in a single market.  

@Justin Phillips no I haven’t even known to ask about asset depletion.  Can you provide a bit more background as to what it is?  It would be great to sound like I know what I’m talking about when approaching a lender.  Thanks!

Ooh, I’m in the same boat as you! Located in Southern California. I’ve also come across a few turn key companies as well and am looking forward to hearing some responses from the pro members. 

@David A Lisowski thanks so much fir the additional info. What does the acronym PITIA stand for?  I haven’t come across that yet.  

@Zachary Beach I haven’t looked into the details yet regarding loan based on stock assets as this is something my husband was researching.  It was my understanding that it was based on the value of the entire portfolio, not individual stocks but will make sure to look into that in more detail. I think he said it was 30% of the value of the portfolio. What is a margin call?

@Zachary Beach that last so much for the warning.  One portfolio through Charles Schwabe does charge a 6.8% rate but another at M1 Finance us only 2%. They only loan you a certain percentage of your stock value but I will look into paying back if stock values drops.  Good to know! Also good to know about the 401K as well. Thanks for the tips. 

@Saurin Pandya yes, we do actually want to invest out of state as CA is going to be too expensive for us just starting out. Good to know that lenders have some flexibility if it’s a good deal. 

@Ben Stoodley The DSCR product sounds exactly like what we would need! What are the factors/calculation to determine if you above 1.0? Our credit is great so no issue there. Is this product look at what the projected rental income would be as well?