All Forum Posts by: Nader Hachem

@Alexander Krasuski I haven’t yet! We can set something up to chat.

@Marian Smith Do you still include PM percentage in your analysis? This way you could see what your true cash flow will be when you scale so large that you can’t manage them all.

Also, I’ve thought of self managing for my first property. How do you find tenants? Anyone have any Recommendations on how to learn things rather than going in blind as a manager

Hey guys! I’m beginning look to buy my first property for a buy and hold. I wanted to see if anyone had experience in these areas and if they’re good areas to rent in. (Property wise and tenant wise)

Redford twp, Mi

Taylor, Mi

Dearborn Heights, Mi

Melvindale, Mi

What things would you look for in these areas? What are some good and bad things about these areas, if any

@Adam Zach Electrical Engineer in Detroit, MI here. Beginner in real estate looking for first investment property. It’s all a numbers game

@Nicholas Sheridan, Jr. congrats!! One of the biggest steps. What are some of those mistakes you would like a newbie like me to avoid? What tips do you have to figuring out whether it’s a good deal (and your numbers are real) or you’re just in analysis paralysis?

@Drew Sygit will do. I’ve called a couple property managers but I am looking to definitely step that number up. 10x it as Grant Cardone says!

@Jeffrey Edwards there's separate line items in the property in the BP calculator. I'm using the MLS so I'm able to get the tax numbers off that. For the insurance, I call up an insurance company and got an estimate for one property i was looking at. The rest are similar in location and type to that property to i added some cash into the number they gave me as a buffer

@Nicole Heasley I knew I forgot about one in my text. I used 10%! Might be a bit high. Usually go with 7% on that too.

https://www.biggerpockets.com/...

This is a property that was sent to me. I ran the numbers and this is what i came up with.

I use 7% Maintenance, 7% Vacancy and 10% Prop Management. 

The property is currently tenant occupied and the tenant is paying $900 a month in rent which is super low. Comps in the area for 3br 2 baths is around $1200-1300 so conservatively, i ran mine at $1125. From the pictures i saw, repairs needed will probably be replacing carpet that is stained and old. It's currently listed at 82K but i believe we could get it for lower knowing that it has been on the market for a while.

Also, thoughts on increasing rent on tenants who you take over? Will this upset the tenant? and how much is an acceptable amount to raise if it is well below the current market price. 

@Evan Polaski that’s a great situation to fall into as a new investor. I’m trying to expand and network on BP as much as possible in order to help me in the same way. I run my analysis with 7% repairs 7% capex 7% vacancy 10% prop management.

These will adjust accordingly as I speak with agents familiar with the areas.

Is the leasing expense you refer to as (4-8%) what the prop manager will be taking out for every tenant turnover? This is something I don’t really account for in my analysis.. thanks for bringing that up!