All Forum Posts by: Sam C.

Size matters!😁

I still think 2-4 units where you live in one is the best entry for a new investor or a couple looking to build equity to morph into a SFH is the best strategy. I just did one (2 unit. Not in Pa) where I live in a unit and after all expenses net about 3-4%. Caveats: all cash, I wanted to live in one, and at the time safer than leaving the money in a bank). Now if you are looking for a net cash on cash return then you need to see at least 4.5%. You can get that for CD's 3 months to 1 year. If you need a place to live, then 2-4 units is still the best bet when you calculate rent you would have to pay. A decent 2 BR in the LV will cost at least $1200-1500 and from what I hear that's is a low estimate. Where are you looking?


 

 Apologize for the delay in seeing your post. I never think in terms of MTR (or short and long term to be honest). I have 2 categories: vacation rental unit or permanent rental unit.

That is a big spread between your two Comps. How did you come up with a ARV of 479? Commercial properties usually have a value based on the gross rent (10X for the better properties). But it sounds like a residential with commercial usage (in-home business?) But if the numbers make sense and will positive cash flow, maybe you can structure the deal that gives you time to find a tenant (highest and best use) before you settle will go a ling way in getting bank money if you are financing. Really be careful with assumptions and how you evaluate the market pool for the property.

You may not like this but leases are worthless when someone has no money and/or leaves and especially leaves the state. He is moving and there is a 95% probability that he is not giving you any more money. Now you have to ask yourself, how much good money do you want to throw at this?  How important is it for you to get the place back as quickly as possible and as ready as possible to re-rent? So IMHO, get him to put a disconnect request in for the electric (I assume it's in his name) and keep the deposit. Send him a itemized move-out report that includes ALL expenses to re-rent, loss income and credit foe the deposit. Certified is best. And put all your effort into re-renting within a couple of months. 

Either take your winnings and leave the table or stay all-in. Now about RE. Your post is a little confusing. Are you looking to buy to move in or as an investor? Are you currently living with your parents? 

Mortgage apps down, homes sitting unsold, more leveraged investors "making deals". This is a controlled demolition of the economy. If the fed really wanted to do something about inflation, interest rates would have to go minimum 15%. That will never happen and they will actually go back to printing more dollars when the time comes. Will they go up? Possibly a little more this year.  But at close to 7%, the damage has already been done. Cash is king again (while the dollar still reigns) and will get the deals. But they are buy and hold unless you got a big spread and priced for any group(s) still able to buy. 

Not going to happen. Even when there were a number of trades available, none of them liked playing against each other except for maybe some of the bigger projects. If you find a eve one or two good people in each of the trades, treat them well. Good ones were always hard to find and keep busy enough to create some loyalty. Now in this economic rebalance, they are the doctors and lawyers. The relationship you create will save your *** when you need it most. 

Negotiable. Furnished, which if any utilities included, etc. Usually on my short term rentals (up to 3 months) usually half a month/flat fee. Those STR's are paying vacationing prices anyway. Longing term (1 year) minimum 1 month.

You are basing your decisions on reality and not fantasy (you would be surprised on how many people do not). Find a market where you can net c-o-c minimum 10% (down to 7% if you will not need to put any real time into it's upkeep or mgt.) or walk away. Calculating IRR is becoming much more important as we get closer to 5% Cd's and solid Blue Chip dividends while returns on investment real estate fall. Real estate will offer some great opportunities later this year as the leveraged group needs to pay off paper and sellers realize there is no selling at list in 24 hours anymore.