All Forum Posts by: Preetham Gowda

It is the reserve you need to set aside every month per unit. If the calculator says $120 (and assuming thats the number you want to go with), then on a 10 unit property, you would set aside $1200 in a reserve account every month.

I have a good contact. But I dont think I can post phone numbers here. Send me a  direct message.

Originally posted by @Rylan Lacey:

Originally posted by @Preetham Gowda:

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

 I got the project funded with a hard money lender here in Arizona. My actual construction loan was $305,000 for the project plus $30,000 owed on the land, and then the lender allowed me to cash out refinance once the project was nearly complete with a total loan amount of $400,000. So cost per sq ft for underground/utilities, offsites, and buildings came to $102 per sq ft. Im able to get it cheap since im also a licensed GC. Due to increased costs due to covid however I’m right around $125 per sq ft for construction now on my other projects

 Great numbers. Thanks for explaining. 

You have mentioned that you will need a property management company to lease and manage. Even at 8% PPM and 15 day rent for leasing and 2 year turnover average, thats another $160 a month. You have not considered insurance, vacancy, opex and capex. Even with the tenants paying rent, this will be pretty tight to cashflow.  If you are ok being CF-Zero, but are in an appreciating market it may still work out. It all  comes down to your investment goals.

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

@Brian Thanks for the response. I will definitely consider that route, even if its just to look at where the numbers come up. 

I recently bought a 2-unit house in San Antonio TX with HM and am currently working on the rehab. I bought the house for $195k. Putting in $60k into it. Holding costs will be about $22k, bringing my cost basis to $277k. My HM Loan is $217k. The ARV is 310k. I know I can do a cash-out refi in about 6 -12 months. At 75% LTV minus closing, I am expecting about 227k back, which means I will only be able to claw back only about $10k, unless my ARV increases. Do you guys see any other options that I am overlooking? Thanks in advance for your help.

 @Zane McLaughlin Thanks for your response. But I am looking at a seller financing scenario where the seller will carry the first lien. How would carry-back work in this case.

Thanks.

I am a newbie getting started in REI. I am looking at a 4-plex building in WA, owner to carry.Terms are as follows:

$425,000  

20% downpayment (about $90,000)

3 year loan, then balloon payment. Either interest only payments @ 6% or payments amortized over 30 year @ 5.5% , same 3 year loan. 

Scheduled gross income of about $3800 per month including w/s/g. 

I am still researching Operating Expenses. From the above it looks like I will need to get the property at much under $425k. I do not have $90k in cash for downpayment. What options do I have to raise that money apart from private funding?

Thanks for your responses.

I would like this information as well. I moved out of Pittsburgh recently and rented my house out. I have a property manager. But his lack of transparency into maintenance costs are making me question his trust worthiness.