All Forum Posts by: Tom Saysithideth

Where does Propstream get equity percentage on a property? 

@Greg Scott, thank you for walking me through that process.

@Michael Plante, I took your advice. @Tarik Turner actually reached out and provided a quote for another property I was looking at underwriting.

@Ken Naim, spot on about the prepayment penalty, this is not something I normally need to worry about with conventional financing.

@Kathy Utiss, I appreciate the straightforward answer. It seems that commercial lending is not as limited as conventional mortgages. So, the answer is usually, "it depends". Thank you for giving your logic on how you would evaluate the deal.

@Timothy Hero, that is the big question. Listing states that it needs work.

 Thank you for the reply Greg. How do you know what is a good deal before consulting a lender? Is the logic to consult a lender first, then with that information determine what properties fit your numbers?

Hello BP Family,

How do you all determine numbers for a commercial mortgage when estimating if a property if worth purchasing? Below are numbers I have (50% rule), the main concern is how to get accurate estimates (that sounded like an oxymoron) for the commercial mortgage. Is 30% down a standard down payment for commercial properties.

Listing Price: $395,000

Type: 6-Unit Multi-family

Location: Tennessee

Gross Monthly Rents: $600/unit

Annual NOI: $21,600

Down Payment: $118,500

Rehab: $50,000

Closing Costs: $10,000

Total Cash Investment: $178,500 

Hi AJ,

It is 4 units. Yes I am working with someone local to the area that can evaluate the property.

Thank you for the feedback.

Tom

Hello BP Family,

I am looking for help evaluating a multi family in Tennessee. Here are some numbers In estimated based on current information gathered.

Property price: $300000

Total gross monthly rent: $3400

Annual property tax: $800

Home Insurance: $1200

Vacancy: 5%

Repairs: 5%

CapEx: 5%

Property Mgt: 10%

Mortgage: $1514

Down payment: 25%

Concerns:

- this property sold for a fraction of the current price 4 years ago, the jump in price is worrisome

- the gross rent for the property almost hit the 3% rule 4 years ago, which might indicate a rough area

- what are some tried and true methods to run comps for multi family units?

Summary: the primary goal is cash flow on this unit, but the exponential growth in price is unsettling and the rate of growth does not consistent with past growth 3 years and older.

Any words of advice are appreciated.

Thank you,

Tom

@Adrienne Green, thank you!

@Lorin Mones, that is the next step if I am not able to find events. Most of the ones I find are primarily trying to sell some type of product. 

Hello BP Family,

I am looking for local real estate investing virtual meetups or webinars. Local to the Virginia, Maryland, DC area. A place where the primary focus is to connect and share knowledge about investing in this area. I understand selling syndication, or investing software is a component of the content. However, I am looking for a place where that is not the primary driver of the meetup.

I am a new member looking to find out more about how investors are finding success in the DMV area. Hailing from the northern Virginia area. I hear about how hard it is to find margin for success in the DMV, but I search for the strategy people are employing to be profitable.

Cheers,

Tom

@Ozzy Sirimsi

The area is Reservoir Hills. It does not meet the 1% of property value rule. Thank you for the feedback Ozzy.