All Forum Posts by: Tony SanFilippo

Would love to hear what happened in your meeting.  As well as what you have decided.

thanks

Go check out Loopnet.com and see what cap rate you can buy other comparable commercial property in the area.  Cap rate seems low to me for not much upside in appreciation.

In Any state, I feel it is important to have financial wherewithal to be able to take take responsibility for the past owner who's responsibilities you are taking on.  Ask yourself, are you able to take the owner out of the deal if anything goes wrong.  For example, if title changes hands the mortgage company calls the note due.  If that happens, I think you should have the financial ability to pay off the mortgage.  Or, if you rent the house out and the tenant stops paying rent, do you have cash reserves to ensure the mortgage will be paid as agreed?  When an owner gives/sells you the deed to their property subject to the existing mortgage being paid by you, make sure you can cover it!  I have heard many guru's talk about Subject to, but not the responsibility that it brings to the investor to ensure the past owner is not hurt by the deal!  It needs to be a win win!

Now those are the numbers we should all require!  too many investors settle for less.

Nice Job!

Wouldn't your cap rate include your "all in" Investment, like rehab and closing costs?  So 7.5%  That still may be a good cap rate depending on your market.  I personally look for closer to 15% and am willing to go out of town to get it.

For us that don't use Air BNB, can you explain why your payout is so much less than your earnings?

Another piece of great info would be what would those houses rent out for if you had a yearly lease instead of daily/weekly etc.

Also, how much work do you put in, or does Air BNB do all the management.  I know you can gross more by using Air BNB, but how much more can you NET and how much more of your time is involved.  How about wear and tear on the property vs. a long term tenant.   I guess I should ask if you have rented those properties on a yearly basis, so you have experience to answer the above questions.  As a yearly lease guy, using Air BNB to increase gross revenue is interesting, but I wonder if the additional work is worth the real NET gain.  Would love your thoughts.

The unicorn is the good contractor that knows how to bid and that has good pricing!  Good luck in a union town!

Does anyone know a low cost staging company in St. Louis MO?

@Gaurav Bhalla

Who is going to be managing the property? Is 10% their only fee, or do they also charge any trip charges, or lease fees or renewal lease fees?  

How is the parking at the property?  If you have a garage (prob. not with a 4-plex in St Louis), but thought I would ask.  Garages help keep tenants longer term, so less vacancy.  Have you had the sewer inspected?  That can be a sneeky expense.  Also is the water line from the street new or newer?  If you plan to remodel and flip it later, the city will require you replace it if it is old, depending on the size of the street line and the line size you need for the house (prob. 1.5inch.)  Your looking at 3500-5500 to replace that.  FYI. 

Also would it be approved as a historical building?  If so, rehabbing it can get you tax credits!  cheers.

@Jake Recz

Good story Jake Recz, keep up the hard work!