All Forum Posts by: Sarah Brown

Commercial value is frequently (but not always) calculated by income.  BP has calculators to help you determine cap rates and values.  I definitely recommend using them.  When mathing this out on the spreadsheet I made, that seems fairly in line with the data that is given.  However, there is data not given that needs to be taken into consideration.  For example, has all maintenance been upkept? How old is the property?  Will or does it need any capital improvements such as a roof?  Are all tenants in good standing on the rent.  Do they keep their units up? 

Welcome to the group!  Happy investing! 

I would consider this an urgent matter, though maybe not an emergency per say.  We only use approved vendors, so if the tenant called in someone else, it would be on them, especially if it wasn't communicated to me.  Obviously if there are extenuating circumstances we might have a different conversation.  I also make sure the tenant is aware that I got their communication, where I am in the process of getting fixed, and when they can expect it to be fixed. 

What kind of fish tank?  Are you taking a 100 gal, or a 5 gal?   I would probably put a cap on the size of the tank.  I'm a pet person.  Many people are pet people.  I find it easier to work with people and let them know the boundaries they have to operate in with their pets than to simply say no. 

This depends on you, the tenant, and your market.  Each landlord/property manager is different.  Their goals and upcoming upcoming purchases may come into play.  How good the tenant is, how much flexibility both want.  It is not uncommon to start with a longer lease (like one year), and then let it fall to month to month after.  It's also not uncommon for some PM"s to upcharge tenants who want to be on m2m vs a long lease.  The state you are in may have something to say about this situation also. 

I also own a bookkeeping business.  I would be happy to look at what you have and let you know if we can do it for $200. If not, what the cost would be.  We help a lot of investors. 

Congrats on your first purchase!  I'm sorry that the lessons are starting already!  You could simply sell it, or have you considered doing a mid term or short term rental?  It will be more money out of pocket to furnish it, but if your area supports it, might be a good way to keep from losing money until you can long term it.  I'm personally a fan of the mid-term. 

Buy and hold is the first obvious answer, but have you considered being the bank yourself?  Perhaps you could lend to other investors.  Many investors need money short term and are willing to pay a decent rate to get it.  This helps them close quickly on properties and fund projects. 

Congratulations on your first investment purchase! There is a lot of variability in this answer and, like all things in real estate, it simply depends. For your first investment, it may not be worth the administrative headache to have an LLC. As you buy more, that will change. I work an asset company to help me determine my risk tolerance. I have decided on a value that each LLC has before starting the next LLC and some of this depends on the location. For example, I would never have 2 properties in 2 different states in the same LLC. I recommend learning your states laws and limitations around LLC's and working with some professionals in your area to help you determine your risk tolerance

Turn her into the housing authority.