All Forum Posts by: Ryan Esslinger

 8 House turned apts

1. They are still getting back to me on what they would want, personally I don't care what they want for the property if it doesn't fit my threshold of an acceptable deal, 

2. but realistically thinking of Cap rates and what could be done to increase the value of the property once bought. Say right now 10% cap rate could purchase the property for 50K. But then What? 

3. Make renters pay for water and electric? Increase value another 50K and or 

4. if paid for by cash take interest expense out? BTW how would one figure the increase in value based off Interest being taken off the table? I understand $/Cap rate but how does that factor VIA interest rates which can fluctuate from investor to investor? 

5. Honestly, they are losing money via debt service anyways, I think the only way to make this a deal is to take over the property and take it off there hands and Find out what they owe on the loan and see if they can cut there loses. 

Any advice or opinions are valued 

CASHFLOW Potential. Keep in mind Debt service needs to be filled in meaning based off my calculations they lose money every year. 

Actual Rents etc. 

I could not find how to upload excel sheet for this.... Please see attached PDF.

Here is the deal as they currently have their financial situation. This house is a converted house to separate apts and the financials look horrible, but is there hope? Please see the financials I've compiled and any advice or opinion is welcomed. 

P.S. they would not give me the mortgage service pmts so It's safe to say this property is in the hole for the past 5 years even if there payments were $500 a month. Also I don't think this property will qualify for anything but private loans given a physical condition. 

My interest and personality etc. has always been in real estate. Accounting is a great career path but I honestly don't think it is for me. I could excel at becoming an Accountant but really where my focus and desire would be in real estate. I would be typing away at spread sheets miserable. So I'm going to specialize into where I would like my life to be. 

I'm huge into personal growth and as I type I look at the master lists of life I have on my wall and my goals. Under long term it's always been invest in real estate. 

Ladies and Gentlemen, 

First and foremost I want to thank you dearly for your contribution to my post and ultimately valuable life advice.

I am taking the Real Estate exam in the next couple of weeks and will be pursue real estate full time. I know this must seem short sighted but, I have thought long and hard and to be honest I would be a miserable CPA. 

I've directed my life towards becoming a real estate investor and to dedicate the next 4 years to busy season and going to a profession I hate based on fear ( what if I fail at real estate investing better get my CPA ) would be a mistake. Unless someone has a sweet accounting gig in the commercial passenger airline industry, this is my choice for now.

I'll welcome more advice and recommendations as I always keep an open mind to possibilities. 

Thanks again,

Sincerely,

Ryan Esslinger 

Thanks guys for the advice, great points are being made here.

I should give more info as well as to why this is a more difficult decision : 

I have had a solid real estate mentor and good friend that flips about two to three houses a month in my area. I've networked and gotten to know both hard money investors that would like to do business in the future. Also, in a year or two max I will have access to private money that would be able to fund my real estate investing decisions. 

Thus making matters even harder to decide lol. 

@Michael Walton @Brandon Hall @Karim Baker @James Park

Thank you all for your replies. 

As I stated in the post above I have my B.A. in Accounting and Finance, CPA eligible, Took audit and got a 70.... twice. 

now the option is to become a real estate agent to become a better investor because I would be working in the field etc. 

or focus all my time and energy passing the exams and working with a CPA firm. 

The exams are brutal lol 

With the new information, please feel free for anyone to add more prospective. 

Thanks

I should have been more clear in my original post. 

I have graduated with my B.A. In Accounting and Finance.

I am looking at the next step in what to do with my degree and where I would like to focus my time etc. Currently I am studying for my CPA exams ( they are beyond brutal ). 

Looking at the two what is most difficult is to decide do I become a real estate agent and become an expert to make investing easier ( rich dad poor dad job ) or do I become a CPA to make a good income but not the best for learning and becoming an expert in real estate investing. ?