All Forum Posts by: Kimberly Ashkenazi

Hello! 

I am very interested in a small MF that has a fair amount of deferred maintenance (about $40K). How much should I offer?  I can think of two strategies:

1. Should I use the flip formula? ARV * X% - repairs? Not sure which % would be best to use, since this is a buy and hold.

2. Whatever max purchase price maintains the 2% rule - repairs.  Current gross rent is $2100, which could definitely be pushed to $2400 after repairs.  This leads us to a PP of $105K (based on $2100) - $40K repairs = $65K.

What do you think? Any other suggestions?

@Paul Garcia @Dashon Jones  Thank you to you both!  This very helpful. Wish me luck :)

Hello friends!

My husband and I are working hard to establish passive income from rental properties so we can gain financial freedom!  The plan is to purchase in cash (to hopefully push the price down) then do a cash out refi and repeat the process to continue purchasing properties.

To what extent is income considered for financing small 5+ unit multi-family properties? My husband and I are excited at the prospect of quitting our jobs, but we don't want to accidentally get our investors' money stuck in a property if we are turned down for a cash out refi. From what I've read, the primary factor is to how well the NOI covers the monthly debt payment.

Thanks in advance

@Jerry Padilla -- Yikes! Good to know.  We already  know there are cockroaches in one of the units.  I'm actually mistaken about having to "evict" the tenants.  They are on a month-to-month verbal lease, so we will need to terminate their tenancy.  We asked the current landlords to write up a letter describing the lease situation as an addendum to the contract.  Our local mentor advised that if we have to go to court, as long as they can't produce a current lease, we should be able to get them out in a worst case scenario...

Anyway, thanks for the advice about the infestations.  Bleah!

Thank you everyone for your comments and advice! 

@Martin Scherer Thanks for the advice.  We're having it inspected on Wednesday.

@Jerry Padilla  Have you ever required a seller to evict a tenant before settling a purchase?  This would definitely push the settlement date, but could be worth it.

@Aaron C. Great idea! Thanks

I just saw a triplex, that meets the 2% rule in an area where it's hard to do. It seems like a great deal, I have two questions. 1. I would want to evict two of the tenants. They are already on month-to-month leases, so legally this is not an issue. How hard is it to evict tenants? 2. I am hesitant about the triplex. I think reselling it would likely be challenging, since the buyer pool is very small. Should I care? Thank you! :)

Thank you, Deborah!  This is a huge help.  

What is 'rego'? "Rego often costs more than just having a seperate LLC in every state....."

A local real estate attorney said we could open a bank account with power of attorney that has been notarized (appostile, maybe?) in a US Embassy.  Do you have any experience with this?

Thanks again :)

Btw, I grew up in Dayton (well, Beavercreek)!  Are you investing there? I figured that would be a good buy and hold market.

Hi 

I have a few family members from out of country the would like to lend me money for my real estate venture .

They are not US citizen, they don't have a us bank account and not planing on coming here any time soon.

What is the best way to utilize their money? Transfer it to my LCC bank account? 

Is it possible to open a US bank account in their name with out them being here? 

Thanks in advance. Any tips are helpful