All Forum Posts by: Ryan Moore

@Diego Romero  You will want to speak with @Dick Rosen.  He's managed my 4-plex for 2+ years since the day I closed on it.  He runs a very professional operation which is great at appreciating your rents, finding quality tenants, and keeping your investment running as smoothly as possible.  

 Thanks.  Yeah I would feel odd not having those operational expenses off the books for the first year, making things lopsided going forward.  Unless I hear differently, I will remove that cost out of my closing amount, and ultimately have them reflected in my first year's cash flow figures

For calculating ROI on a rental property, I assume my closing cost to be part of my initial investment number. On my closing costs, I paid 1 year's insurance, 1/2 year taxes, and some HOA. Normally those are part of the operating expenses, thus impacting the cash flow numbers.

So do I not include those in my cash flow numbers for the first year of operations since they were paid upfront?  

For that year, I ended up booking those expenses on their respective line items in my P&L.... should I have not done that and left them off operating expenses all together since they were paid at closing?

Thanks

While I don't know the market in downtown area, it's not exactly in a great area.  This new build kind of sticks out like a sore thumb compared to the homes around it.  Google the address and see the area surrounding it (google still has it as a vacant lot).  Also they seem very happy that with 2 weeks to go until completion and they have 50% of the building pre-leased... maybe that is a good thing, but that really is only 3 units, I read that as they couldn't get another 3 tenants to rent in that area for that price point.  

 The 9 cap rating is a joke since there isn't anything listed for expenses accept insurance (which seems low) and taxes (will taxes go up now that it's not a vacant lot? I'm not sure how that works).  Seems too pricey, especially for that area.

I have the book in my audible cart right now waiting on that monthly credit to show up.  

I would love to know what the 'Miracle Morning' solution is to being woken up almost nightly in the middle of the night for either bottle feedings, or nebulizer treatments.  I think I set a goal twice this week to try and wake up early and start to organize my morning routine going forward, yet the numerous wake ups and having to stay up for 30 minutes to an hour at a time is killing my mojo.  I'll be interested to hear if they address those who have "issues" during the night that make waking up early so hard.

Thanks @Ashish Acharya.  I thought there was something about being able to claim distributions and keep the safety of the entity intact.  I have definitely had to contribute personal money into that account when I first purchased my property due to lack of cash with some unexpected upfront cost.  Thank you for clearing that up.  

I have my rental's reserves sitting in my business account earning nothing. I have my personal finance reserves over at Ally earning 1.65%. Nothing crazy, but still it's something. I cannot open an account under my LLC there. Would it be breaking some legal structure /protection of my LLC by storing the rentals reserves in an account under my personal name? If so, any idea of strategies/banks where I can earn a little bit more back while keeping the finances within the LLC?

@Roy N. Thanks, I like that idea of a 3 month concession.  Based off my experience w/ my property, having a 3 month buffer would have been an appropriate amount of time to get the unit fixed up and rented.  Being able to have 3 months of all vacated units also would have allowed me to fix up both units at the same time... I had to actually only do one at a time due to $ restraints in my situation.

My initials thoughts were to be able to either back out of the deal or renegotiate, but having that set amount already in the contract, sounds like it'll be less headache.

For buy-n-holds, if you take a portion of your collected monthly rent to place into reserve accounts for items like future vacancy, repairs, cap ex, etc., do you NOT include that money in your final earned cash flow number?  It's technically earmarked for a future expense, so I would assume it is not included?

My multifamily has a solid NOI as of late, but since I set aside such reserves, the cash flow figures aren't as awesome. Am I making the correct assumptions?

My property's HOA covers "landscaping" (aka watering the rocks), and water to my units. Electricity to my building is my responsibility, which ultimately is metered out to the tenants. I obviously pay electricity on vacant units during turnovers.