All Forum Posts by: Troy Marschall

Step 1: Get educated 

Step 2: Build a plan

Step 3: Execute

I hope this helps. Through the education process @Levi Borunda you will start to understand all of your options and if flipping the one you actually want to pursue. There may be another route that suits you better. When you figure out your investment strategy through education, you will then build a plan that again fits your vision for investing (everyone is different). Now that you are educated on the topic of choice, and you have a plan in place, you will know exactly what to do with your 100K.

V/R - Troy

J.J. Thomasson, Newnan, GA - 75 Jackson properties - http://www.75jackson.com/

If you are going to develop 3 units, I personally like the townhome style. It will also align with you being able to sell them off, if you would like.

Multi-unit properties, correct? I would contract it out, and then work the price back into the rent when new leases are formed. If these are townhome style apartments with a driveway in front of the garage, then yes, I would agree that in new leases you could say the tenants are responsible.

@Tyson Lee Debt Service per year. Sometimes when I am evaluating, I break it down by month. It is a personal habit.

Hope this helps!

What market are you in? Under the 'Annual Growth Assumptions' each category is 4%. Also, you may have inputed something incorrectly, the loan balance isn't decreasing on the 'Analysis over time'. Also, a 5% management fee is low for a SFR, should be closer to 10%.

@Yury James,

You said it yourself, neither plan is ideal. I would recommend moving on and start looking at other properties. Another option is to find another lender that, hopefully will not mislead you.

V/R, - Troy

I would force appreciation if are able to add value, raise rents, decrease expenses and refinance asap to pull the free money out. By not putting 20-25% down it is causing you to run extremely tight margins, which in turn could put you in the red when faced with a multiple unit issue.

@Aliz Raksi,

I usually calculate cost of turnover and vacancy separate. Cost of turnover can vary from each door, depending on the previous tenant, and most of the time the cost can be offset by the security deposit. Vacancy directly impacts the scheduled income for the property. For most of my analysis, I use 10%, but I also do a macro analysis of the market to see what the vacancy rate is currently at. I also do not like the 1 months rent to fill a unit, that sounds like it can be very expensive.

V/R