All Forum Posts by: Debra Muth

Thanks to all for your comments, found out interesting things about the building digging in more. The building manager owns 2 buildings next to his and those buildings are full but the building that I am looking at buying is not.  When we calculated 3 years of expenses the actual rental rate is $ 9sq ft not even close to going rate in a class B building in our area and the cam charges are $7 sq ft yet there are individual electric meters for each suite. This will definitely have to change over time because the going rent for a building like this with triple net is $19-21 a sq ft. 

We also found some padded expenses over the 3 years. 

Certainly the building manager is going to go. He has not even put up a for lease sign on the building that is 1/2 empty and has been for 2 years. I am going to take advantage of this and try to get a good price for the building.

40% of the building is leased. One long term lease, one month-month lease. I would say the rent is at the higher end of normal for the area and property. The normal V/C is about 40% and for a 2 year time frame. If I go to the value where it cash flows immediately with the rental rate it would be like $321,000 that doesn't make any sense at all.

I am looking at purchasing a nice commercial building. It doesn't need repairs and I will occupy 50% of the building for my business. I am trying to calculate an asking price. The 50% that I will occupy has been vacant for 9 months. I would like to capitalize on that but my broker is advising against that. When I calculate the NOI I come up with $15,816 a year but with the way the building sits now it is loosing $4290.00 a month. Of course when I rent it we will cash flow instantly. They are asking $1,000,080.00. According to my calculations I should offer somewhere around $775,000-850,000. My broker is saying I shouldn't look at offering less than a 10% reduction in the asking price.

Can someone help me with this offer. I do know all the expenses as well. Other buildings in the area are going for around $800,000-1.4 million.  It is considered a class B rental property. Well cared for.

I found an investor looking to get rid of 5 properties. I have evaluated this and it seems like a good deal. My question is how does this work with financing when there are 5 separate properties, are they put together as one loan or separate loans? I remember reading that there is a portfolio that can be put together for these types of cases. 

I have read that if the bank will give you a payment amount they will count that if not they will calculate 2% of the total as your payment amount.

Does anyone know what the new change is that prevents you from getting an FHA loan when you have student loans?

I am looking for about 26,000-30,000 for  a single family home that needs rehab and will be converted into student housing. The house is in a great area in WI for student housing. It is a foreclosure with good potential. I would need the loan to be for 6-12months with a moderate interest rate 5-8%. No prepayment penalty.  

She definitely has not shopped around. I will have her look at this option. I hate to see her miss out on keeping this house as a rental property.

She currently only has the loan on the house, but this makes sense because the bank is only counting her income not her husbands because he doesn't have a credit history.

Thank you for this information. I will have her look into these options.

Thank you for this information, she doesn't qualify for any of the exceptions to the rule and doesn't qualify for a conventional loan. hmm....