All Forum Posts by: Nicholas Junker

Thank you Greg

What about that equation I was talking about. Is it accurate? 

I invest in Bozeman Montana.

I've been in negotiation 4 times now in the past month with off market sellers I've found through direct mail and I cannot make the numbers work even with historically high rental rates!

These are all multifamily properties. One was a small duplex 2000sqft lot very small, one large 6 plex old single family converted, another duplex that is a single family conversion, and now a old single fam converted into a duplex that is in an awesome historic district with great rental history (sorry not supplying numbers I can if need be).

In my analysis I have one key equation that is "Offer price based on "X" cap rate." Bozeman's Cap rate is 7.5% (based on numbers from multiple mortgage and real estate brokers).

This equation is my NOI for the property divided by the cap rate. The number is always about $100k less than what the seller is asking.

Is this cap rate equation relevant for my size properties/market? I know it is used in commercial lending and analysis does it just not work for duplex's to six plex's? Does this just mean the market is so high right now that I just need to wait for a market correction? I can't believe the prices these sellers are asking! 

Please enlighten me.

Hi!

Im a local investor here in Bozeman MT and I am looking for legal and accounting advice and representation. I would hope there are CPA's and Lawyers who also invest in the area; if there are please reveal yourself! Would love to connect and work with you going forward. If not, does anyone have any recommendations for CPA's or lawyers that deal with REI and investors in the area?

Thanks!

Hey Jessica

Just want to let you know that there are two investment groups here in Bozeman. One is on Meetup.com search Bozeman Investor Club. And then we just started a Cashflow Game night meetup on Meetup.com as well. Hope to see you at both! Contact me directly if you have any questions.

Gino, question for you. 

When you analyze seller financing options are you basing the interest rate on a 30 yr note? So in your first deal, the 10% seller financing is based on a 30 yr note or is it a 5 yr balloon?

What is the general rule I can use when analyzing seller finance deals? Is it based off of the comparison of going to a bank correct?

I have a seller finance option right now. I want to make sure I will still cashflow at different interest rates that the seller will be happy with. Let me know your thoughts.

Reece

Im in the exact same position.

I have a decent credit score, $20k+ for down but very low income for the past year and can't qualify for ANYTHING!

Just chatted with an investment broker yesterday thinking that THIS IS IT, but my main problem is debt to income ratio.

I don't hold any auto payments, cc debt, college loans but when looking at the expenses of a property (mortgage, hoa, taxes, insurance) plus personal expenses (mainly rent from primary residence) all that debt adds up to quite a lot more than my income.

For an investment loan you need your income to be 2-2.5x the debt of the property your investing in. Basically, I need to cosign with someone to add to total income thus making the process more complicated but maybe if your area is a bit more affordable than mine, you would not need a cosigner. 

A mortgage broker in my area recommend an investment loan broker for me to talk to and the meeting was helpful so maybe look into that option.

some examples on properties in my area:

$240-280k 2bd/2bth 1980's condo's with rooms renting from $700-1000 depending on location and condition

$330k+ 3bd/2bth condo's/homes with same rent

$400k+ 1940's single family homes that need A LOT of work but again rent could be as high as $1200 p/room

Hi @David Friedman,

I'm a new investor from Avon CO, looking to move to and invest in Montana. I'd like to learn more about foreclosures--but don't know the best place to start. Any suggestions? A book (or several) that you found particularly helpful as you started out?  

Thank you! 
Nick

I currently own a 2bed/2bth condo in Avon, Colorado which is located directly across from an awesome world class ski resort known as Beaver Creek Resort (it is Vail Mountain's sister resort just a short 5 miles down i70 to the west). Acquired this condo with my father for $205K in September 2013 and am currently breaking even on my monthly expenses renting the apartment out to some friends in the area. Other condos in this complex are currently being listed for $230-260 depending on remodels and these same condos were listed from $140-180K in 2012. The rental market is VERY strong up here in the mountains as housing shortages are very high forcing seasonal and full-time employees to find housing down valley up to 40 miles away from Vail in which many jobs are located.

My dilemma is this. I can't decide whether to continue to try and invest a buy and hold strategy in this market as housing prices have risen and are continuing to rise so dramatically that 2-3bed/2bth condos are impossible to afford and cashflow. Foreclosures are also non existent as well as duplex/fourplex units.

The future of this valley are huge multimillion dollar vacation homes taking over neighbourhoods and continuing to push affordable housing down valley to the west, farther and farther from free bus routes and easy access to skiing and recreational activities. 

Do I need to find a new area to invest? Is this market becoming over saturated and unaffordable? Am I missing creative opportunities to finance? Am i not looking at all the possible angles? (i still have a primary home buyers power in finding a loan) If i need to look into a new market, how do I begin?

Thanks!