All Forum Posts by: Ryan Clark

@John Pfeifer have you considered refinancing? Could turn your upside down cash flow right side up. If you’re concerned with strength of condo market long turn best to get out regardless.

@Joel Owens This is a three bay coin op near a large reservoir. Has one bay large enough for RVs. Active vs passive income is of concern to me. The time investment would run approximately two hours a day. I can finance the business due to the commercial lot it sits on through my usual local bank for 15% down. If I had to invest $100,000 out of pocket I would definitely not be considering the deal. However, even with the reduced out of pocket expense, I have decided that it’s not enough return to satisfy me.

@Joseph Cacciapaglia thanks for the link. I always enjoy research.

Three bay car wash in small rural town, pop. 2200, for sale. Land and car wash for $100,000. On the surface, does this sound of interest? I am considering purchase. What research I have done Gives me idea of-estimated $20,000 to $25,000 annual gross. Anyone on here with experience in this business?

@Nate Haskins I don't look at cash as a number, but rather as a percent. If I have my PITI at 50% or less of rental income then I expect to cash flow 15% after reserves. Notice this is not cash on cash return, but rather percentage of rental income. I set that 15% aside for future expansion.

@Faysal Alam. This duplex you are looking at. You will be accepting $1000 under market for your family to live in and still pay $750 towards the mortgage? That sounds like you just increased your family contribution to $1750 monthly. Have you considered that?

@Miles Stanley. I purchased a house built in mid seventies that was all ungrounded two prong wiring. Had 12 gauge wire with 20 amp breakers and 15 amp two prong outlets everywhere. Most rooms had at least one burnt and busted outlet. Your electrician is correct about being able to install a GFCI at the beginning of the daisy chain of outlets to protect the outlets in the room. I did this and installed three prong 20 amp receptacles with my 20 amp GFCI. In code for my area it stated that each receptacle was required to have statement on it about being ungrounded but protected by GFCI. We lived there for two years afterward before selling with no issues. I also installed GFCI breakers for major appliances and kitchen and bath areas. Spent less than $700 to do it myself.

@Matt P. At the very least, the inspector should have noticed the meter running with nothing on. That is a basic part of inspection. That is how you determine if there is an unknown leak somewhere.

@Samantha Smith. The last house I bought to live in and repair had a $300,000 rebuild estimate for insurance, but I only paid $72,000 for the property. My insurance company of 15 years refused to cover it. I suspect this is part of the problem you are having. There are several companies that handle what is considered higher risk policies. I settled on Auto Insurers. You may inquire about an agent in your area.

@Kevin Miller. When I am looking at small multi family units to assess value I look at average price per square foot on recent sales in area. For instance I was looking at a four unit where I live and researched to find out that $90 per square foot is about the going rate, however looking in a section of Little Rock I found that $75 per square foot is approximately the going rate. That may help you do rough estimate of ARV.