All Forum Posts by: Sean Ploskina

@Adam Wimmer

Welcome to site and the area for investing!  If you haven't yet check out the BP rental calculator, I have 5 properties and their calculator has been the best I have found for remembering all the little expenses.

@J Scott

LT Caplan is known for working with investors. He is part of the local REIA and has done several presentations for them.

http://www.caplanlegal.com/

Welcome to BP @karen plyler!

Charlottesville is a great area, my wife and I love coming to vacation there!

Check out the Bigger Pockets beginner's guide and their Podcast.  There is thousands of dollars in information on there.

@kyle H.  Glad to hear the numbers are based on comps.

Are all the numbers based on real life or just what he has said?  If possible a copy of his taxes for the property will give you a real idea of expenses and income for the property.  He may not be lying but sellers get fuzzy about expenses.  They never do with the IRS.  

How old is the building?  Things like replacing plumbing, cabinets, electrical.  How much work does each unit need?  You mentioned not having a lot of cash; do you have enough to cover the rehab costs for a couple units?  Just stuff I didn't ask myself on properties.  

Will you manage or have someone else do it?  That is another 5-10%

Not too bad a place for 120K. But I think you math is off on the 1000/month cash flow. That would be 12000 per year which if we take your NOI means 3680 for the mortgage. You P&I will certainly be more than that. Talk with the credit union and get some better numbers on the P&I and run it again. It might still work but not as great as you think right now.

The 50% increase is based on comparables? Why are the rents so low now? What is the state of the other boilers? If you don't have the 20% down do you have enough to cover if those break? I would add a budget for Capex also on this property. The roof and 2 boilers are new but still at least 5% to be safe.

@Andrew martel

Where in VA did you buy? 33k is super cheap nice work

I would put in a 5% or so bonus for work down early or under budget.  Or say I will pay X, if your expenses are less than X the rest is yours.  

@Meg K.  I would show it as well.  I waited when i had the change to show a recent rehab and I missed out on several chances to get it filled.  

My only caution is to wait until you are 75% done and have samples of what the floors and paint will look like so the potential tenant can visualize what it will look like in a week or two.

@dean klein

  You can add a contingency of having the tenants evicted prior to your purchase.  However if they are compliant with their current lease they will be harder to get out.  Its a good bet they are on a month to month lease, if so getting them out will require a 30 day notice and probably eviction after that.  

You can also try and reduce the purchase price or other aspects of the deal to take on these tenants and the headache.  Trash is easy to deal with.  Until they start damaging the place its not a big deal.

http://norfolkair.norfolk.gov/norfolkair/

This is the link that will get you everything