All Forum Posts by: Nicholas Ball

Thanks for all of the information everyone. I suppose it isn't really a good strategy to rely solely on age as a factor, but I do like the idea of a life cycle analysis for big CapEx repairs. @Adrian Chu I hadn't considered condos that have HOAs, but that makes sense that they would take care of a lot of external repairs. Actually sounds like a more favorable option for easing into buying rental properties.

Hi,

I'm looking to properly estimate expenses in my model when searching for deals. I'd like to be able to get a general idea of the expenses before doing further research into the property to determine specifics (like determining the age of appliances). I'm primarily looking for single family homes/condos/townhouses/apartments in the Seattle area - at least to start with.

In the model, I already have 2% of the purchase price set aside for maintenance, but I'm curious how much more I need to budget into this category based on the age of the unit. Does it make sense to increase the maintenance or reserve budget for a property that is 30 years old compared to one that is 5? Is there a rule of thumb that can be used to accomplish this? Or does it really depend on the specific age of the unit's components (water heater, appliances..), which would require me to do further research anyway?

Additionally, should I change what I budget for maintenance and/or replacement reserves for an apartment vs a house, considering that with an apartment there would be no concerns about the roof, yards, or any outside features? 

Thanks guys!

Thanks for the offer Trevor. I would like to send you a message, but since I am not a pro member I believe that I need to send you a colleague request. Would you mind that? 

I'm curious about properly adjusting the value of comparison properties to determine the After Repair Value for our subject properties. Additionally I have concerns about how much our company can expect to take from our net cash flow versus what should be returned to the investors.

 Hi Paul,

Thanks for the articles, always looking for more good research.

And I hadn't thought about targeting student housing in particular, although it makes sense considering that the demand near colleges.

Hey Jeff,

A real estate investment startup is just a small company that invests in real estate, usually through either buying properties and leasing them (apartment complexes, single-family homes, multi-family homes), flipping them (renovating and selling for a profit), or holding them (buying and waiting until the value goes up to sell it).

I just started this with a friend, and I think it's a great way to get into real estate. This friend knows a fair amount about real estate because he took classes to get his real estate license. You might want to look into getting one as well just to have some background knowledge before going in.

As I understand it, there is quite an initial investment required to buy any properties that would be profitable, and that is roughly were our company is at this moment.

Good luck!

Hello everyone,

I am a third-year college student at UC Irvine and I major in business administration and finance. At the moment I am working for a small real estate startup in the San Francisco Bay Area. It currently does not hold any properties, but we are looking through websites like Zillow and evaluating different single-family homes. We eventually hope to buy one and lease it out.

If anyone has any experience with single-family homes, or even real estate tips in general, then I would love to hear from you. We have some concerns with considering expenses in our model, specifically with replacement reserves in comparison to general maintenance, how much to set aside for reserves, etc.

Thank you!

Nicholas Ball

Hello everyone,

I am a third-year college student at UC Irvine and I major in business administration and finance. At the moment I am working for a small real estate startup in the San Francisco Bay Area. It currently does not hold any properties, but we are looking through websites like Zillow and evaluating different single-family homes. We eventually hope to buy one and lease it out.

If anyone has any experience with single-family homes, or even real estate tips in general, then I would love to hear from you. We have some concerns with considering expenses in our model, specifically with replacement reserves in comparison to general maintenance, how much to set aside for reserves, etc.

Thank you!

Nicholas Ball