All Forum Posts by: Account Closed

@Andrew Johnson Thank you for the advice.

@Jeff B. Thank you for your help. If you don't mind, I have a scenario to run by you. Lets say a triplex is listed for $480,000. I plan on getting an FHA loan and owner-occupying one of the units, so the first year's GSI and NOI will only be based off rent from two of the units. at $1300/month a piece...thats a $31,200 GSI...*.50 is 15,600. After the first year, when i move out, the GSI will increase to $42,600...*50 is 21,300. How would you go about making an offer? I know you arent well versed on my market and cant pull a GRM out of thin air, but would you multiply one of the NOI by a GRM with checking sched-Es and rent rolls as contingencies?

I ran a DCF, increased NOI by 2%/ year, forced an 8% return, assumed id sell in 10 years at a 7% cap rate and came to something like $440,000. My DCF assumptions could very well be horrible, just getting practice in.

@Jeff B. I'd agree. My reason for the DCF is to determine a viable purchase price. How do you personally go about doing that? Experiment with a P&L for the current year?

@Arpan Patel Interesting perspective. How do you go about determining a reasonable purchasing price? Do you just experiment with a P&L for the current year?

Hi guys,

Determining NOI is not problem, but how would you suggest forecasting future NOI for the the next 5-10 years when running a DCF or trying to calculate net present value?

Thank you. 

Hi guys, 

Determining NOI is not problem, but how would you suggest forecasting future NOI for the the next 5-10 years when running a DCF or trying to calculate net present value?

Thank you. 

@Kevin Siedlecki Haha don't worry. You did an awesome job of breaking down the three scenarios. You were right, I was combining the three and confusing the hell out of myself. You've definitely helped me. I really appreciate you taking the time to write that!

@Brett Weaver Thanks, Brett. You definitely cleared things up for me. 

Hi Guys, 

Sometimes its the simplest concepts that I overthink, but I am having a bit of trouble comprehending a refinance. Lets assume I take out a mortgage for X amount amortized over 30 years at 6%. When I refinance, does the balance stay the same (effectively making me start the payment process all over again)? Or do I only apply for the amount that I owe since I will have built some equity in the property. Also, I don't understand how a new down payment would be needed when refinancing. Am I meant to to bring 20-30% of the appraised value?

Simple concept that I am almost sure I am over-analyzing, but I would appreciate your guys' help.

Thanks. 

@Dante Pirouz Thank you very much. I appreciate the advice!