All Forum Posts by: Nadia White

I'm considering to subscribe to Realeflow and was wondering if someone has experience with them. 

Welcome, @Russ Mortland. On BP and in the Carolinas! 

Greenville is a coll place to live. It's lively, but quiet enough to raise a family. 

If you need anything, please get in touch!

Nice, @Jordan T.. Depending on where you live, there are also a few sub-groups of that REIA meeting regularly.

First of all, you need to know what the property is worth. Do you know that already and what you are going to offer him?

Yes, @Jordan T.

I go to the Metro REIA meetings. Maybe we could meet there? It's always good to know people in person.

Perfect 3 bedroom / 1 bath rental in the Van Heights neighborhood of Monroe, NC. This neighborhood is a strong rental area and we have already received calls to rent the house. 

Median Rental: $700/mo. (RentOMeter)
Comps: $50,000

This is an estate property and has been vacant approximately 3 years. The city of Monroe has boarded it for security. Photo shown is from tax assessors office from before boarding and used for evaluation.

Repairs Estimate: $15,000

HVAC, Siding Repair, Kitchen repair, Sheetrock & Ceiling repair, overall painting & appliance package.

This is a 'ball park' evaluation, for accurate estimates, please consult a licensed general contractor.

Pictures at: 

http://www.sellpoint.com/propertyDetails.aspx?caseId=5355932 

Hi Ryan, here is a rule of thumb when you don't have all the numbers. 

Income: all the rents + other income = X

Vacancy rate: at least 10%, no matter what your seller tells you. Otherwise, use the higher number given by the seller.

Expenses: if bills paid by tenants ==> 45% of (X * vacancy rate)  /  if all bills paid ==> 55% of (X * vacancy rate). = Y

NOI: X - Y

In your case: 

Gross Scheduled Income: 5,816 *12 = 69,780

Vacancy (10% because the seller didn't give you anything else to work with): 69,780 * 10%= 6,978

Adjusted gross income: 62,802

Expenses (55%): 34,541.10

NOI: 28,260.90

My take on this is that the seller is asking you at least 2x too much.

Unless of course, the seller can prove you that there is no more vacancy, that there is no deferred maintenance, that the tenants are paying on time, etc. by providing you all the financials.

Good luck!

Typically >5 and class C with value play in them. I'm looking nationwide.

Welcome to Charlotte, @Jordan T.

 I hope you'll like it here. The market is very active and competitive. It makes it even more fun. At least we'll have stories to tell when we will be old enough to reminisce what we did in the "good old day"! LOL.

We are also active in the multi-family part of the business and I enjoy it tremendously, because it's all about numbers and analysis. It fits my introvert nature.

I would welcome the opportunity to bounce off ideas and help each other.

Please feel free to contact me any time.

Have a great weekend

Nadia

@Adrian Smude, first of all, congrats for your first deal. You have done the most difficult part, where nobody else could help you!

1. you need to establish an exit plan and therefore you need to know if the area in which the house is located is more of a rental area of a fix and flip area.

2. since you are a DIY landlord, you are fully capable of going through a house and list the things that need to be fixed/replaced. 

3. Make lots of pictures and take lots of notes. There is more memory in paper and a pencil that in our heads. 

4. you don't give her a price there on the spot. Ask her what she is hoping to get out of the house (and don't let that intimidate you). You tell her that you need to go to your office/home and run your numbers. But make sure that you get back to her within 24 hours. 

5. Based on your pics and your notes, find a local contractor/wholesaler who can help you estimate the costs. 

6. Run comps (sale and rental)

7. run your numbers like every wholesaler would. 

8. Depending on your market, pad it so that you can negotiate a little, but if you are in a sellers market beware of being too low. 

Good luck!! and congrats again!