All Forum Posts by: Mauricio Ramos

@Alvin Sylvain thanks for your response, and that is precisely my question. I think i made the question a bit confusing. 

Ill clarify that i am not referring to regular maintenance and repairs as capex.

In your opinion, the capex should be an expense so it should be taken from "above the line" and affecting the NOI. I have heard from other "gurus" that the capex should be taken out after debt service, ie, from the cashflow, not considering it an expense. This way it doesnt affect your NOI, giving you a more valuable asset.

So my question was, which way do you do it, and you answered my question.

thanks everyone for your input!

Hello BP Family!

Kind of running in circles on this dilemma and would love to get your opinion on this.

When using @Michael Blank 's calculator (which is a state of the art weapon) i see the "deposit to replacement reserve" line item in the EXPENSES box, but there is no CAPEX line item. So if you use this line item as your capex, this would lower your NOI, hence your property value goes down. So i would typically add an extra line after debt service to account for CAPEX without affecting my NOI.

I have heard some of the other big guys in MF to never account your CAPEX as your expense.

What is your opinion on this? How do you account for CAPEX using this calculator?

Thank you!

Mauricio

Hello BP Family,

When buying small apt complexes (8-32 units), do you use any "rule of thumb" to calculate the cost of insurance? Considering is an "average" area, ie, not flood zones, not on the coast, and not in crazy expensive markets. 

Thank you,

Mauricio

@Jamie Garcia MB's podcasts are great and his calculator is the best ive seen out there! There might be a few others but for sure he is among the top5 MF guys available for coaching.

Good Luck,

Mauricio

@Anthony Palmiotto i agree with @Shawn Lowery, a local bank should be able to roll in the rehab costs into the loan which would help with you CoC issue.

I have to agree that typically you just raise those funds upfront.

Good Luck,

Mauricio

OFF MARKET 12-Unit Apt Complex For Sale in the Rio Grande Valley TEXAS

This property is located in 130 Gil Dr San Benito Texas. Property is off of Hwy 77. The property is at a walking distance from city parks, groceries stores like HEB, Walmart, banks and retail stores. 

This complex features 12 units and 1 potential efficiency. All units are currently occupied.

8 EA units are 2b/1b

4 EA units are 1b/1b

1 EA efficiency (currently non-operating)

Gross rental income: $59,520

NOI: $32,316

Cap at purchase: 8.10%

Purchase Price $399,000

Price per door: $33,250

This property is a GREAT Value-Add opportunity, as the rents are below market.

Projected Gross rental income: $72,600

For more info, please DM me, or comment below with your email address and we will email you more info about this property.

Thank you,

Mauricio Ramos

Duplex for Sale - Rio Grande Valley TEXAS

This duplex was built in 1999 with a solid structure, concrete slab, stucco exterior, shingle pitched roof.

The property is centrally located with k-12 schools within walking distance, as well as major groceries and retail stores. 

This property is a short drive away from University of Texas at Rio Grande Valley.

Total of 1,632 sqft of livable space. 

Current Rents are below market. This area support rents of at least $625 conservatively. Leases will up for renewal in December 2018 and January 2019 respectively.

Asking price: $114,900

For more info, DM Mauricio Ramos or comment with your email address.

20-Unit Apt Complex for Sale - Rio Grande Valley TEXAS

Excellent Value-Add apt complex for sale in Pharr Texas. The property is located in the business districts of Pharr and McAllen Texas in the Rio Grande Valley (South Texas). Major businesses established and some being  established currently in the area, due to large development and gentrification plan which started in past few  years. Definitely an up and coming area in the Rio Grande Valley.

The complex is located within walking distance of the only TopGolf being built in the Rio Grande Valley.

Details:

20 Units

Purchase price $799,000

Current Gross Income: $132,000

Current NOI: $64,237

Projected NOI after reposition: $76,597

Cap at purchase : 8.03%

Estimated annual cashflow after debt service after reposition, year 1: $22,744

For more info, please DM Mauricio Ramos or comment with your email address.

Hello BP family,

Quick question, i am looking into educating myself on private money (how to talk to investors, etc). Any suggestions on either a Live Event or an online program for this purpose?  Particularly I invest in multi family, so a program focused on MF would be preferable.

I have heard about Jay Conner's program (seems a bit pricey) and also found Private Money Mastery. 

Thanks for the input!

Stay profitable

Mauricio