All Forum Posts by: Peter Bui

Hey all,

I am trying to get into commercial real estate and wanted to practice some analysis before I start syndications and offering on properties. With that being said, here is my analysis for a deal in Hunington Beach. I would very much appreciate any feedback and I will take them constructively!

Address: 8177 Garfield Ave Hunington Beach, CA 92646

IF i were to buy this for 2,300,000

Cap rate: 4.56

Bed/ Bath: 1/1 x 8 Units

Rent: 2000 x 8 

Expenses: 

Property Management Fees - 1000

Repairs/ Maintenance - 319.14

Real Estate Taxes - 2875

Rental Property Insurance - 766.67

Vacancy Costs - 1333.33

Capital Expenditures - 960

Total monthly expenses: 7254.44

Financing: 

Down Payment: 20% - 460000

Loan Amount: 1,840000 @ 5% interest rate

Closing costs: 69,000

PI/Mortgage: 9877.52

Cash invested: 529000

Total Monthly Cashflow: -1311 = 16,000-7254-9877.52

ROI: -2.57%

The point of this excersise is for me to recognize bad deals. And if i can recognize bad deals, I can recognize that something isn't a bad deal and I can start negoitating from there. Anything will help! (rent too high/low, not enough capex set a side, ROI doesn't make sense, the whole deal doesn't make sense, taxes, insurance, interest rates incorrect, etc....)

Thanks in advance!

Peter 

Chris T. Brian Garrett Haha My mind was just stuck on buy and hold, didn’t know why I didn’t think of flipping. Thanks for the advice! If I end up selling it, maybe I’ll sell it to one of you guys cheap for helping me out. Thanks again

Michael Seeker thanks Mike! Exactly what I was looking for. I appreciate the detailed response

Thinking of obtaining a property through seller financing, since they are giving me such a low interest rate and low price in Phoenix, Arizona. 

So my question is, where do the taxes go? or is that something I have to pay at the end of the year and not a monthly payment? 

Anything else I should consider or take out of the "expenses" when dealing with seller financing? 

Thanks in advance 

Peter 

Hey all, 

City: Villa Park, California 

My uncle wants to sell my a property for 800,000 through seller financing and no interest. Market price is approx. 1.2 million - 1.6 million. Estimated rent: 4000-5000

Neighborhood property ranges from: 1 million - 2.5 million 

So my question is, is it worth it to buy this property in this Class A neighborhood. I know the rent is approx. 4000-5000, but will i be able to rent it out for that much? If the tenants have that much money, wouldn't they be able to just buy the property themselves? 

Or should I buy then maybe do some quick rehab and flip it? 

Any advice/thoughts? 

Thanks in advance

@Lane Kawaoka sure! feel free to send me a copy

@Russell Holmes Thank you so much for the info! I'll contact the title company and attorney. He agreed to a 3% interest rate so fingers crossed everything goes well!

Thanks

Peter 

Hey @Russell Holmes perfect! thank you so much! I was actually thinking about purchasing a home through a coworker and he has agreed to sell to me through seller financing and a low interest rate. Do you by any chance know where I can get a "seller finance" clause or contract that I can put in escrow? 

Would that be free of cost through a title company? 

Thanks in advance 

Peter 

Looking for your best recommendation for syndications/apartment rental. Feel free to post your favorite book even if its already said in the comments. The more it comes up, the more I'll know its a good book. 

Looking to know every single detail about syndications and apartment rentals. 

Thanks in advance!!

@Sean mind sharing this info? I had the exact same question ? Thanks in advanced!