All Forum Posts by: Michael Galesky

Va you should be able to get a 4plex.  See what you can do to make that happen, much more substance in your investing and a lot more padding if a tenant leaves.

Am I getting the cap rate correct at 22% for a cash deal?  Yes I know I didn't take out the expenses like tax, insurance etc.  But just testing my math.

Are you certain you can rent in the community?

Clicked on the link to see the pics but the site seems down, perhaps it is part of the unfinished rehab?

My real estate lawyer was telling me that the market for old apartments is a bit tight for making a profit so there are a bunch of builders that are just building and selling apartment building for that profit.  Giving landlords options in the market.

 Are you willing to hold the note?

 I'm reading the ABC's of Real Estate Investing and am learning a ton.  You might want to start there.

Looks like after expenses it is around $380 per door, not at all bad if you own it outright but with a 5% loan you are at -$163 per door.  Not that this matters much because the banker will not lend you the money knowing this information.  You need to find out what the comps are for those buildings and see if there is any dealing to be done with the seller.  For a turn around on rents, supposing they are not month to month, will be in the range of 2 years and raising rents by $163 per unit will only find you at the break even point with no reserves for capex.  you would have to raise rents by $263 per door just to get $100 per door profit. Don't fall in love with the deal before the numbers tell the truth.

Another option is a secondary water meter that can be monitored via the internet.  EKM push communications has a system that can be installed after the city water meter.  You never know if the fix it guy is going to forget about that when he has a ton of tenants asking for this or that throughout the day.

Thanks Tim.