All Forum Posts by: Jonathan Johnson

 $700 would be a competitive rate once updated

@Zach Quick

@Zach Quick, @Steve Vaughan, @Jacob Passmore, @Nicole A.

Thanks Nicole, that's really helpful.

The property needs a lot of work done, probably 50-90k in repairs and updating. Structurally it's sound and a lot of these repairs are not major. 

It was built in 1907.

Each unit is 1bd/1ba and pretty spacious. I don't know the sq footage.

Still working on a purchase price, but I'm aiming for 200k. I still have to walk through with a contractor.

@Nicole A.

I figured it would be about that much. I was guessing around $500/unit/year. 

What Insurance provider do you use and what do you cover, if you don't mind me asking.

Hello BP!

Looking at buying a 6-unit apartment and I'm guestimating expenses. If I get what's standard for a commercial property insurance, how much can I expect a year for insurance?

Thanks for asking, I'm interested in this too.

I think PDF downloads for property analysis would entice me to upgrade to pro. 

I noticed that the download limit is weird because most of the download documents only give you a document file name and no description of what you're downloading. I've wasted a few downloads on things I didn't quite need. I don't know if there's a way to require a description or offer a preview of what you're about to 

Also, I'm still exploring the vastness of BP, but perhaps a packet-creator to give to potential hard money lenders. Where you could fill in the blanks from a deal you found and it spits out a Cover Letter, Executive Summary, Properties details, Financing numbers, About me, ect. with graphs, ability to add pictures, and attach documents. Perhaps a scope of work page with prices of rehabbing. 

I love BP and all it is helping me to learn. Thanks for doing a great job at building a great community.

I'm interested in the difference between setting up a trust to handle rentals and setting up an LLC.

Be very careful with dealing with service animals. You could get sued for discrimination against handicapped people who need service animals.

As far as the ADD and whether a service animal is needed and the credibility of the doctor, I would email an attorney and ask for a brief consultation. If you get taken to court, judgement will always lean towards helping the tennant rather than the rich landlord. Regardless if you're rich or not, you're the rich landlord.

@Omar Merced That's awesome! I have to use all hampsters running to understand all that, but I think I got most of it.

Cap Rate = NOI/Price (your ARV)

So you got your ARV by NOI/Cap rate. What did you use for a cap rate? I can't remember, but I think i read that 8-12% is good?

Any way you could figure the "unknown margin" as a percentage? I'm building a due diligence worksheet for when I walk through an apartment.

Hello BP,

What are the financial numbers or considerations for Hard Money Loans?

What would it look like to offer 10% on a hard money loan for rehabing an apartment over 4 months?  Do I pay back in payments? How do I calculate that 10%, as I spend it, at the end of the 4 months, at the beginning?

I want to calculate the cost to know exactly how much money to ask for and what to explain to potential new Hard Money lenders who might not know what options there are.