All Forum Posts by: Sean Moen

Yes the rent can be raised.  I've verified with a few established PM's the various rents and the realtor on the deal even said they rents are depressed because the owner doesn't want to deal with vacancies.

I'm glad to mentioned the loan @Account Closed because that is an area where I simply plugged some assumptions.  My goal is to analyze the cash-flow under a 0% scenario and see how it calculates out.  I have no desire to "buy" cash flow so the down payment is irrelevant to my decision.

However, the amortization would make a difference and I'm not sure how to play the conservative card there.  I plan on utilizing private money - as I have contacts in place for that already - and would hope to get that type of amortization schedule with a balloon payment built in to refinance down the road.  What do you think?

No idea why my @mentions isn't working.  Names wouldn't pop up when typing them out.  If someone could mention those folks and maybe explain how to mention in a new post; that'd be awesome!

Hey gang,

Just looking for some feedback on a deal I'm looking at:

8 Units w/ Listing price @ $500,000 however, here's what I'm calculating out to:

7 Units occupied @ $595/month - 1 unit purposely left empty for showings (by current owner)

Here's my purchase price calculation:

As you can see, I'm offer $150k less than listed and have a minor negative cashflow upon purchasing.

Here's the value add calculation:

For the record, with $0 down, the monthly cash flow calculates out to $500

As promised, I said I would mention @Ben Leybovich & @Bram Spiero.

Credit for the calculator goes to @Wendell De Guzman

Thanks for the feedback!

@Ben Leybovich 

I believe @Bram Spiero  was just providing an example.  Those aren't my numbers.  I should probably stop hijacking Mark's thread and post my own analysis and start the feedback process.  Look for a mention when I post it up Mr. Spiero & Mr. Leybovich.  Thank you for the refinement.

@Ben Leybovich @Bram Spiero 

The understanding of appropriate offer price is a point of contention for me now.  I believe I've identified a solid 8 unit that hits on all cylinders (under market rents, good area, big metro, value add opportunity on turn over) and I believe the cash flow is there to the point of being able to understand and justify what the offer price should be.

Given it's 8 units, offer price should be based on income generated so is it a 2-part calculation? Cash Flow analysis coupled with an offer price calculation? (My Calculated NOI * Cap Rate)?

Welcome Andy and thank you for your service!  Always nice to add another local to the mix.

Let me get your opinion on something - what was that "trigger" that got you started down this path?  Was it during your service or after?

Reason for asking is my brother in law is in the Reserves for the Marines and I've been actively planting the REI seed since he got back 3 years ago. He's a young kid (23-24 I think) and with the VA programs he has available; he could be killing it from the start!

Oh this is going to be fantastic!  Great work!

Goose bumps Mr. Dorkin...good ol' fashion goose bumps.

Site preview looks amazing but, more than that, the video hits a very strong chord that will resonate with anyone that watches it.

Thank you Josh for your passion.

Welcome Jeff and glad to see another local guy on (and in extremely local at that, I live in RC as well!). Sacramento's got a great group of investors (as you can see) and some great meet ups. Sadly I was busy on Tuesday but, from the looks of it, the unofficial BP meetup was a great success.

Keyword alerts have helped me a ton to keep track of the local events without being too distracted!

See you around man!

Thanks for the reply @Franklin Romine . I am simply looking for a bank with a good reputation working with RE Investors. Portfolio would be nice but the long-term plan would simply to create a solid relationship that can flourish for both parties.

Do you work with Tri-Counties personal?