All Forum Posts by: Ken Hicks

I located a rental from the mls. 7 units. 2 commercial, and 5 residential with 2 bedroom and bath. the building is a total of around 12,000 sq ft not sure how big the commercial spaces are. Here is the problem that i'm coming with is that there are only 3 residential units filled and it has 2 commercial units vacant and 2 residential units vacant. the residential units rent for $350 each plus utilies the commercial units go for $500 a month plus utilities. when i talked to the realtor he acted like i'm stupid when i asked what would the owner of the building pay. He told me nothing except halway lighting. I know that is not 100% right because there is a 15 car or so parking lot. they have the all brick unit listed for $225,000 only for 4 weeks on the mls. to me the numbers won't work and with the vacancies and the way the realtor was talking like i was stupid and saying a real investor will make a cash flow. I think the unit is only worth $140,000 with all the vacancies, I think in that area the residential units could rent for $450 plus utilities. I haven't looked at the unit yet. He told me the investor is selling because he is in real estate big time and doesn't have time for the unit, and thats why its vacant. Its not adding up, he owned it for 10 years. what do you guys think of this property.

If you go to member list and do a sort by location a bunch of names will come up but it doesn't show anything in the location box. That would be nice if it did show were everyone is located at. Anyway i can't help i'm from cambria county PA. I can tell you texas is warm.

I'm new and I have my little secrects, but i'm sure my little secrects are no match for others secrects. I think the big problem is the compitition. Lets say i have a flyer that give me a 25% return in the pittsburgh area. then i post it on this site and Ron Dataker takes my flyer and post it in the pittsburgh area and now is getting half of my 25%. I wish everyone could be open to each other. I don't know everything but i can learn alot. There is a group called nextstar networking. Its for contractors such as electricians, hvac, ect. what they do is you have a county you work in or counties, and you buy into the network and only you control those counties but if the counties are a certian size like near pittsburgh you can have as much as 3 guys in your network but if it the size of my county I have only me. and what that company does is estiblish a network a forum for everyone to post ideas, problems, situations ect. and not have to worry about some guy down the street stealing your ideas. you know who your helping and you will know if that guy knows what he is talking about. Just my thoughts. Is there a way to set somthing like that up? maybe $50 per county population limit is 300 people then you can have 2 investors buy into that county. Man I think i'm onto somthing. What are your thoughts? Oh and as for pictures I would love to see before rehab, and after pictures with the prices and a breif description on what was done. I personally am on my first rehab.

Depends on your area. Personaly i stick with $60,000 to $150,000 ARV. I don't think you can touch a property in DC under $250,000 and with interest rate climbing it might stay on the market longer and you have to be prepared to pay the mortgage for a few months which if you have a $3,000 a month mortgage payment that will eat your profit up in know time. But if you buy right and do your homwork you shouldn't have a problem. I think a LO or a Option might work better for the high end markets. anyone else have ideas?

I have a excel spread sheet if anyone is interested to check it out on how much to purchase a property. it's a very simple sheet. It will give you a number like $29,750 I think that looks alittle better than $30,000 It shows the home owners you've done your home work. I offer around 60% of ARV.

Not in DC. :) Just Kidding. I think the DC area would dofine if you can find a motivated seller. the cost of homes are high there and they are putting building restrictions on counties around them. So buy right, put in good curb apeal and you should do fine.

Buy right and you can't lose. I'm looking to make $30,000-$70,000 on my current rehab project. LOL yeah big gap. just depends how much time i want to put into it. I think alot of scenes are staged on that show like the time they moved the big green dumpster and it so happened to roll down the hill and hit a piece of junk car and destroyed it. either way its entertaining its not a learning show forsure. I also like whatching the other show on TLC "flip this house" and DIY has good shows for "DO It Yourselfers" I just purchased a training program from larry goins. he buys 10-15 homes a month and wholesales them for $5,500 each times that by 15 WOW.

I was told there was only one big key to sucess.NEVER NEVER NEVER give up.

well some properties are on the boarder of the war zone. I think some are just wishing they could sell their property for such a high price. I'm just trying to get a handle of what the cap rate all mean when purchasing a property.

I was wondering if anyone can give some input on Capitalization Rates. how do you determine your area rate. I'm finding that one block might be 6% and another block could be 12% can any one tell me their thoughts on what capitalization rates mean to them while investing in a multi unit property around 5 units.