All Forum Posts by: Tim Herman

@Simon Sanchez Your variable expenses might be high. Hard to estimate without more info. SFH or multi. Size of the property. You would need to run capex and repair budgets to get a more accurate number. Insurance seems low.

@Willie Brown Your priority should be getting the tenant out. Find the best eviction lawyer in the area and start the eviction. I don't know what the timeline is for eviction in MI, but you will be able to find a new PM before the end of the eviction.

@Rashid Khalil No it is for primary residences. You could get a second home loan for 10% down. Usually the requirements are 14 days of use or 10% of days rented, no property management and I believe 50 miles from primary residence. I don't think they do multifamily homes.

@Cirilo Villar only if you move to Texas or where ever you buy. FHA is for owner occupied. If you don't move then you can be prosecuted for mortgage fraud and could get accommodations at the nearest fed pen for up to 30 years and you have to pay for it also with a fine of up to $1,000,000.00.

@Jason Chubbuck Where are you getting your numbers. When I run a repair budget it usually comes out at least $50 per unit. My minimum capex is $100. Banks will underwrite vacancy at 5%. I use 8%. Unless the fire station is next to your duplex your insurance will be higher. $10 per unit will not even cover liability. feds are planning on raising the prime rate 3/4 to 1.25% higher than now. Your mortgage should increase by that much to be on the safe side. If you look further in the report the 50% rule shows a positive cash flow of $49 per month. You might bring back a little more than that. 

@Mauricio Quintana No problem Have a great day

@Mauricio Quintana Look at who has the most listings on Crexi and Loopnet. They will be the most active agents and have built rapport with the sellers in the area.

@Yehoshua S. where is their a management company that manages for 4%. With rent up fees and such it will be closer to 10-12%. Not enough information on whether your capex and repair budgets make sense. Is this a sfh or multi. Size of the units. Unlikely $26 for capex is enough. My bare minimum is $100.  

@Chad Robertson if you want more information you have to tag people. Use the @ sign and type their name or use the quote. Then they are notified. I don't know what the HOA covers. I don't know the size of the rental units, makes a difference on capex and repair budgets. A 200 sf studio will have a different number than a 1500sf 3/2. Insurance looks low for 4 units. $25 per month per unit. Have you got a quote for a 6% mortgage.

@Alec DeAngelo use the network tab and input Chicago. If none of those meet your expectation then go to meetup.com, input real estate, zip and miles willing to travel.