All Forum Posts by: Scott Shimala

I’ve come across he formula for dealing with Gross Rent Multiplier, which is the selling price of the property/gross rent per year. 

The book I'm reading is using an example of a $200,000 house with an 8.5 GRM due to $1950/mo, or $23400/yr in rent (23400x8.5=200,070.

Just after, the book talks about improving the property so rent brings in more money per month/year, which increases Gross Rent Multiple. 

According to the formula, shouldn’t this decrease the Gross Rent Multiple? What am I missing?

I gotcha. Of course it will probably never be perfectly 50/50, but do you think that’s a low estimation or high estimation for extra expenses on a property?

In the Ultimate Beginner’s Guide, they talk about the 50% rule. Half of all expenses come from mortgage and you should budget the same amount for repairs, maintenance, taxes, etc. 

I have not bought my first property yet, so for those of you that have, how accurate is this rule of thumb? What do you do if it’s an overestimation? Pocket the money? Save it for a big repair bill? Interested to hear your experiences. 

Thanks! Landlord omg is definitely something I need to read up more on. I guess going in I just felt like there’s be more to read up on as far as the actual buying process goes, but it sounds like the real work comes in in finding a great deal and doing the actual landlording. 

Thanks again! I will start to call around and ask what I can qualify for soon. 

Just a quick background. I am 27 years old looking to buy my first property, a multi-family property, next year. I plan on living in one unit and renting out the other(s). 

I have started out reading the Ultimate Beginner’s Guide and have made my first draft of a business plan, but I don’t know where to go next. 

I've read a bit about FHA loans since I've seen they only require 3.5% down, but I really just feel like I'm looking at random topics to study. Is there somewhere I can look at to give me direction? A reading list of topics would be awesome. Thanks!