All Forum Posts by: Account Closed

Hard money lenders are different. Research this on BP. Lots of good articles that show you how to do it with little or no cash. These asset based lenders are going to be your best bet. Everyone on here has made good suggestions. Don't take this as "spam" It's constructive criticism. If you ask a question or ask about a deal on here..expect it.

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What's the cap rate on this? There's your answer.

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I'll make this very easy for you. Break up with her. Problem solved.

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Originally posted by Financexaminer:

Since you should never buy any property without an exit strategy, cash flow should never be the sole consideration. As Jon pointed out, I look first to cash flow covering the deal, only to the extent that it doesn'teat any hay, then to appreciation and financing by any qualified buyer (you can always seller finance a decent property). If it passes this RE acid test, then cash flow is considered further as a plus.

If you buy and hold for a few years, sell and move up, at the end you'll have equity in better properties that can be soldfor note income as opposed to being retired, yet working as a landlord!

After all, the ultimate goal is retirement! LOL

Can you explain passing the RE acid test? I remember from my lending days that the acid test was Cash plus Marketable Securities divided by Total Current Liabilities. Similar to the current ratio but taking out inventory, accounts receivable and other current assets.

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Prayers up.

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Originally posted by Jon Klaus:

An observation: $330 rent is very low per unit rent, and it looks like utilities are included in the rent. I suspect this would be a challenge to manage, given it's low end nature. With this type property I'd shoot for a buying price of < 33 times monthly rent, or an offer of <$137,280.

I see about $36K in expenses and that's without vacancy or management costs. With gross income of about $50K, this looks like a loser.

Where do you get the <33 times number from? That is an interesting calculation.

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This looks like a good one. As stated above just make sure you do proper due diligence when inspecting the property. How many comps did you pull? Are they recent sales? or just asking prices? Recent sales are ideal.

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Are there any other benefits to a 1031 exchange other than tax?

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All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 110 times.

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Post: What Other Benefits to a 1031 Besides Tax?