All Forum Posts by: Sabi Const

Short sales take a very long time. One that I purchase took 6 months after grueling calls to the bank and time wasted dealing with people who could've cared less about moving the property.

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The $$$ depends on the market you in.

$10k savings for a $100k house is very different from $50,000 on $1,000,000.

Time is the unit I would use based on the operating costs.

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@Stephanie Medellin which lenders are offering this?

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IMO, business deals go bad when the owner is extended.

As much as I would love to say to jump in a deal, use hard money, just go do it... The reality is that vacancies, unforeseen economic conditions, repairs can easily force one to become a motivated seller.

I would have at least 1 year's worth of reserves in the bank.

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I am factoring to put down 20-25% of total cost

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One you are borrowing historically cheap money. Two the properties cash flow well. Three use the money that you have extra to buy more deals. I see no reason to pay off unless there is absolutely nothing else better to do.

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@Robbie Reutzel I have not factored putting money away for repairs, would do so out of the rental income. I consider that usable money.

@Andy Schornack Glad to hear that the management fees are overshot a bit. Just trying to be conservative on that amount. I was surprised as well to factor around $55/sq ft. What do you think is a reasonable construction cost for units that are 1100-1300 square feet using granite, decent equipment, fixtures?

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Originally posted by @Jason Hirko: Yes, cash flow is king, but for $20k / door, what type of tenant problems are expected, litigation, eviction, etc. People who are concerned about their credit aren't most likely living in these types of places. The main concern I have beyond the investment being cash flow positive, is to not be tied up with unnecessary headaches of having to evict people or units being trashed.

Even though the cash flow might be better on a lower end "dumpy" property, I just do not have the time nor the inclination to deal with the potential headaches. Does that make sense? What can't someone be a developer as 1 company and a landlord as the 2nd? Seems to me like the perfect scenario to build cheaper than buying from a developer and creating passive income by renting newer, quality units.

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All Forum Posts by: Sabi Const

Sabi Const has started 8 posts and replied 44 times.

Post: Now or Later? 2 vs. 4

Post: Short Sale & I didn't know it

Post: How Much Did You Have Saved When You Started?

Post: Funding for multi family in Los Angeles

Post: How Much Did You Have Saved When You Started?

Post: New construction multifamily 12-15 units considerations

Post: Should you pay off real estate?

Post: New construction multifamily 12-15 units considerations

Post: Multifamily considerations for new build

Post: Multifamily considerations for new build