All Forum Posts by: Steven Denio

Thanks! @Manny Cirino

Hey all, 

Looking for a good book on Negotiating. Any recommendations would be greatly appreciated!

Thanks,  

I’m curious if it’s possible to build a restaurant space and refi out of the building renovation after its all completed? Any knowledge in this area will be much appreciated. Thanks.

Hello BP friends and colleagues,  

I am on the hunt for an Architect and Engineer in Portland, Oregon, to turn a single family home into a triplex. I would love any recommendations you may have. 

Please PM me if you have any info. 

Thanks, 

Thanks, @Chris Youssi and @Corby Goade

I really appreciate you taking the time to comment. 

My assessment of 24% cash returns is after accounting for property management cost. I am investing out of state so I believe that a PM is critical so I can pay attention to other endeavors. 

You hit on another concern of mine. I feel that I will need to either A) negotiate the price down or B) find a lender who will do better than 80% LTV on the property once I refi out to a conventional investment loan. With the property being vacant I will not be able add any value to the product so when an appraisal comes in I may not have the equity needed to make this a viable starting investment. On the other end, it is a property that has been managed by the company I am looking to use for over a decade and has renters that have never been late on a payment.

@Corby Goade, You hit on my question perfectly in reference to cap rates and really helped me understand where to factor it in. Thank you for that. I will also start factoring 10% for capex. Thank you again.  

I will add that in using the BP rental calculator I found my mistake, I added taxes into the equation twice. My monthly cap rate ended up being closer to 3%. 

Thank you all!

Thank you, JD.

I am looking into buying my first out of state rental property, I am looking to buy it in cash through a LOC that I have on another property of mine then use the delayed financing exemption to refinance into a conventional loan.

The purchase price of the house is 89,000 and it looks to worth about 105,000. The house is currently rented for 875 and has great tenants that just renewed the lease and I expect my mortgage, taxes and insurance to be around 590 in total if not less. I believe the house can rent for more after the tenants leave too. Looks like rental comps are around $995-ish for the area. I have a team in the area that will manage and maintain the property but I don't have a lot of experience with unexpected maintenance costs ( I think its 20% of net income?). I must not be using the bigger pockets rental calculator correctly because its telling me that my cap rate is 1.3% but The general % of income I'm showing that will cash flow looks to be around 24% before unexpected costs, such as maintenance and repairs. 

This is not my primary source of income (Yet :-), I am looking to start building a rental portfolio so this will be the first of many rental properties that I am looking to purchase. I have a plan to pay down the debt associated with getting into the properties but I'm concerned that the numbers are too tight here for this house to cash flow.  Any insight would be greatly appreciated. 

Thank you, 

JD Martin I am just now getting to this part of my build. Would you mind elaborating a little on how to relocate a chain link fence? I am fairly certain that the metal poles are all set in cement under the dirt, I pulled one of out and it was braced in with cement so I am guessing that the rest are as well. It could be a decent size project for a fence that will most likely be torn down once the split off lots starts being developed. I am mostly concerned about a visually respectable way to show the division in the two lots. Do you think construction fencing will scare away buyers at all? Thanks,

He does have if it handled actually just not certain about cost. I guess my question should have been more toward fees. That said, Is there a general idea of costs I can expect for permits and drawings. Also, will it be possible to build a duplex on a R5 zoned property? Thank you all again!

Hello, 

I purchased a home with a build-able lot next to it. I have went through the steps to split and the confirm the lot in two and have just finished renovating the home. Now I am partnering with a general contractor and would like to build a duplex on the vacant lot but I have zero experience in building a home from scratch. 

That said, I would like to look at bringing on a consultant to help move the process along. I have no experience with the permitting process and the fees associated with it and I have never had to have plans drawn up from scratch for a home build. 

Please let me know if you have experience and would like to take on this project with me. I have access to singe family build on this lot that has been pre-approved for the city but a multifamily home will work best for a buy and hold on this property. 

Looking forward to hearing some feed back!

Best,