All Forum Posts by: Robert Adkins

Hello everyone,

I am curious what percentage profit everyone looks at when they are buying a deal.


I currently have 5 properties(1.3M equity) that gross $5700 a month then after expenses I’m left with $2636.

Is this a good profit margin or should when I look at buying another property look for better margins? Also what’s the best way to calculate this?

Good Afternoon all,

I have recently purchased a property from an individual that used it as rental property. The tenants that lived there moved out 4-5 months ago but there belongs and lots of other junk still remains. They owe around 8k in rent currently and when I reached out to asked them to remove their belongings they refused. Again they currently do not live there at all, only have items there.


What is the best way to move forward so I can have all the junk removed and house cleaned so I can have it remodeled to be rented? 

Also is there anyway for me to obtain that rent that’s currently owed to go towards the cleaning fee for the property? The estimate cost to do the full clean is around 6k.

Thanks for the help!

Thank you for the reply !

Hello everyone,

I have some questions regarding a business and a trust owning property together.

I currently own a LLC that I use to "own my properties" and do all the financial transactions. My grandmother passed away recently and has three properties in her trust that I am wanting to add to my business in order to gain equity and show more income. Currently my mother is the beneficiary of these properties but would like me to take them over to ensure they are taken care of and they have renters in them. The problem is she doesn't feel comfortable handing the properties over to my business allowing her to have no say at all over them anymore. So with this being said is there away my business and the trust could own the properties together so I can benefit from the equity/income and she can ensure she still has part ownership in the properties? I thought about adding her to my business but that is not an option since I own way more properties than these that I solely want to be the one responsible for them. Any suggestions would be greatly appreciated!!

 This was through a commercial lender, that’s why I was confused on this response as well.

 Check below

This was what I got. "We don't do much look at a borrowers ROI for rental property, we mostly are concerned with debt service coverage, which is how net cash flow you have compared to debt payments.
If we have actual rental history we will use actual expenses compared to current rents. But we will take net income, add back any depreciation, amortization and interest expense to get net cash flow. Then we divide that number by the total annual debt payments and want the cash flow to cover debt payments by 1.25x.
If we don’t have actual expenses we take 35% off gross rents to get net cash flow. The 35% includes potential vacancies, insurance, taxes, repairs, etc.
If a management company is used we take that at in addition to the 35%.
Also limited to 80% of the purchase price or appraised value.”

So I have a property I recently bought as an off market deal for 145k. It has a brick house that's a 3/1 and a small house/apartment built behind that is a 2/1. I currently rent them both out for 1900$ and month which is cash flowing 1200$ a month and has potential for more with more rehab. I've talked to my lender about refinancing and getting equity back but the bank says I'm unable. I owe around 100k and the property comps strong at 250k. Should I keep the rental or flip to get into something else that I can actually BRRR? Wanting to keep adding properties to my portfolio as quick as possible.