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All Forum Posts by: Leila Moussavi

Leila Moussavi has started 14 posts and replied 34 times.

Post: Private Investors Deal Structure

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

@Adri Jusczak

@Jonathan Styer

Hey Adri,

Thanks for the reply! I've heard the BRRRR method provides a great return for investors, granted that it's done successfully. Because this is my first deal and it's out of state, I'm looking for a property that only needs light cosmetic work because I don't quite have the experience to tackle a BRRRR yet. What are your thoughts on my strategy and providing a return for investors?

Post: Private Investors Deal Structure

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi there!

I'm a new real estate investor looking to invest OOS in MF for cash flow in KC, Indianapolis, and Columbus and Cleveland. My parents are willing to fund my deals and are able to pay all cash for properties. This opportunity is obviously a huge blessing, and but I'm at a loss on how to structure the deal so I can provide returns for them.

I personally don't need to the cash flow from the properties in the next few years, so was thinking of giving them 100% of the cash flow for the near future. However, this would mean taking a long time for them to receive returns on their money.

Any suggestions about how to structure deals with them to ensure a quick(er) return on their money?

Thanks for your insight!

Post: Private Investors Deal Structure

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi there!

I'm a new real estate investor looking to invest OOS in MF for cash flow in KC, Indianapolis, and Columbus and Cleveland. My parents are willing to fund my deals and are able to pay all cash for properties. This opportunity is obviously a huge blessing, and but I'm at a loss on how to structure the deal so I can provide returns for them.

I personally don't need to the cash flow from the properties in the next few years, so was thinking of giving them 100% of the cash flow for the near future. However, this would mean taking a long time for them to receive returns on their money.

Any suggestions about how to structure deals with them to ensure a quick(er) return on their money?

Thanks for your insight!

Post: Private Investors Deal Structure

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi there!

I'm a new real estate investor looking to invest OOS in MF for cash flow in KC, Indianapolis, and Columbus and Cleveland. My parents are willing to fund my deals and are able to pay all cash for properties. This opportunity is obviously a huge blessing, and but I'm at a loss on how to structure the deal so I can provide returns for them.

I personally don't need to the cash flow from the properties in the next few years, so was thinking of giving them 100% of the cash flow for the near future. However, this would mean taking a long time for them to receive returns on their money.

Any suggestions about how to structure deals with them to ensure a quick(er) return on their money?

Thanks for your insight!

Post: Help! First Out of State Rental

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi all!

I am checking out a lead on my first OOS investment. MFH duplex (2 bed 1 bath per unit) in KC, KS. I will be using investors (parents) to finance the property and they are willing and able to pay all cash. Property info as follows:

Price: 120,000 (expecting to pay more like 130,000 because a lot of shown interest in the property)

Condition: 1960. Doesn't look like it needs a whole lot of work. Exterior isn't the best but decent. Fully occupied with a M/M tenant of 4 years ($575/month) and a leasing tenant that began in 7/21 and ends in 6/23 ($650/month). Possible new roof running at 5/6k.

Rental income: $1225/month

Expenses:

Property taxes: $120/month

Insurance: $121/month (quoted)

Repairs: 10% ($122/month)

Vacancy: 10% ($122/month)

Cap ex: 10% ($122/month)

Management: 10% ($122/month)

I plan on tenants paying for everything else. It has separate meters.

If I'm doing the numbers right, it should cash flow $575 per month.

1. How do I incorporate a return for my investors from this cash flow? How would I structure a deal?

2. Am I missing anything? These numbers seem too good to be true!

Post: Help! First Out of State Rental

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi all!

I am checking out a lead on my first OOS investment. MFH duplex (2 bed 1 bath per unit) in KC, KS. I will be using investors (parents) to finance the property and they are willing and able to pay all cash. Property info as follows:

Price: 120,000 (expecting to pay more like 130,000 because a lot of shown interest in the property)

Condition: 1960. Doesn't look like it needs a whole lot of work. Exterior isn't the best but decent. Fully occupied with a M/M tenant of 4 years ($575/month) and a leasing tenant that began in 7/21 and ends in 6/23 ($650/month). Possible new roof running at 5/6k.

Rental income: $1225/month

Expenses:

Property taxes: $120/month

Insurance: $121/month (quoted)

Repairs: 10% ($122/month)

Vacancy: 10% ($122/month)

Cap ex: 10% ($122/month)

Management: 10% ($122/month)

I plan on tenants paying for everything else. It has separate meters.

If I'm doing the numbers right, it should cash flow $575 per month.

1. How do I incorporate a return for my investors from this cash flow? How would I structure a deal?

2. Am I missing anything? These numbers seem too good to be true!

Post: Help! First Out of State Rental

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

Hi all!

I am checking out a lead on my first OOS investment. MFH duplex (2 bed 1 bath per unit) in KC, KS. I will be using investors (parents) to finance the property and they are willing and able to pay all cash. Property info as follows:

Price: 120,000 (expecting to pay more like 130,000 because a lot of shown interest in the property)

Condition: 1960. Doesn't look like it needs a whole lot of work. Exterior isn't the best but decent. Fully occupied with a M/M tenant of 4 years ($575/month) and a leasing tenant that began in 7/21 and ends in 6/23 ($650/month). Possible new roof running at 5/6k.

Rental income: $1225/month

Expenses: 

Property taxes: $120/month

Insurance: $121/month (quoted)

Repairs: 10% ($122/month)

Vacancy: 10% ($122/month)

Cap ex: 10% ($122/month)

Management: 10% ($122/month)

I plan on tenants paying for everything else. It has separate meters.

If I'm doing the numbers right, it should cash flow $575 per month.

1. How do I incorporate a return for my investors from this cash flow? How would I structure a deal?

2. Am I missing anything? These numbers seem too good to be true!

Post: Property Evaluation Criteria

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12

@Joshua Janus

Understood. Thanks for the fast reply! Super helpful.

Post: Property Evaluation Criteria

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12
Quote from @Taylor Dasch:

Wow! You have a great plan and if you keep learning and stick to it, you will be financially free long before your goal date. Id stay in college so long as you love what your going to school for and get a job doing that, then get an FHA loan for a househack. I really wish I would have learned that before purchasing my first property.

Neighborhood-I like B and C class neighborhoods, some would classify my properties as being in a C+ class neighborhood but in my market it really is street/block dependent. Which is also why it helps to have a great realtor who knows the area. 

Size- Im with you, 3/2s typically work best for rentals- better tenants, less turnover, Higher ARV.

MFH- 2/1s are fine just be sure you use a higher vacancy rate when running the numbers. Ideally 3/2 but I wouldnt pass up a multi family property because it was a 2/1 on each side. 

Lot sizes dont really matter too much IMO unless it is a really small lot or really big. 

Property Condition- This is where your research and market knowledge really come in to play-another reason to have a good realtor. Ideally starting out you should get something with light cosmetic updates so that you have less risk if you go over budget or if it does not rent out for what you expected. But IMO if you are looking to build a decently sized portfolio, You could get a pretty run down property that needs full updating, BRRRR it, rinse and repeat. This is a lot harder than it sounds however. This is why you start small. If you have no idea what any of this work costs, what the property needs, or what the ARV and rental value is then you will be taking a massive amount of risk.

Cap rate-is mainly for large multifamily IMO, I analyze my deals by using COC return, and my goal is 15% AFTER BRRRR-which is easy, but I still would like a decent return in monthly cash flow as well so wont refinance to the full value of the property unless it still cash flows 500/month after expenses. ( on my current project).

I base my investments on what I like to do and my personality. I wouldnt like to call my tenants asking for their rent ( I would if I have to) I prefer a tenant who is low maintenance and pays on time every month. Not saying that all MFH tenants are like this but statistically there is a higher probability of a late payment when compared to SFH. You are correct though, multifamily is good for scaling. At the end of the day it is all about knowing your market very well, and then taking directed action to acquiring properties that meet or exceed your criteria in your market.

Once you are super confident in analyzing deals and ARV and cost to rehab/hold the property, and you find a good enough deal, financing will be the last of your worries. However IMO a job is crucial to being able to get loans on properties at least in the beginning. Keep learning, read as many books as you can, and start grinding, your young enough that if you start investing now, you will be lightyears ahead of 95% of people your age!

@Taylor Dasch

What a wonderful reply. Thank you so much for your insight. About the ARV - I'm not very comfortable analyzing this and haven't learned at all how to, partly because I don't see myself doing a lot of rehab on my first few properties. Ideally it would be light cosmetic work. How would I go about learning how to analyze ARV, and is it crucial that I learn how to right now, if I'm not going to be heavily repairing a property?

Thanks so much!

Post: Property Evaluation Criteria

Leila MoussaviPosted
  • New to Real Estate
  • Riverside, CA
  • Posts 34
  • Votes 12
Quote from @Joshua Janus:

Is a house hack a goal of yours in the future? Study the requirements for an FHA loan like a book and make sure to set yourself up for success. Examples would be building up your credit, getting the most recent tax returns for the last 2 years in the same field, building up capital for the down payment, closing costs and 6 months in reserves so you can use as much of the rental income from the other units as your own income when you getting qualified. These are some barriers I had to make sure to be able to climb over. Let me know what questions you have.

@Joshua Janus

After college, I might be interested in house hacking, yes! How long would you say it would take to meet all the requirements for an FHA loan, assuming I don't have a credit card/W2? I'm not sure how many years it would take to build up an adequate amount of credit and collect a steady income to qualify for this loan.