All Forum Posts by: Tyler Winchell

Your building should apprise for $1M in order for you to refinance $700K out.

To figure out the value you need to know projected income and expenses and market cap rate.

E.g. if the market cap rate is 10% your building need to produce $100K NOI annually for $1M value.

NOI = income - expenses, so for this example you need $200K gross rents and $100K operating expenses.

Your actual numbers will be different, of course.

$380 rent is way too low. Most of your expenses do not depend on rent and annual expenses per unit would be $5000-5500 in most of the country. This means you're losing $1000 per unit per year or $36K/year. No wonder it is offered at $19.4K/unit!

Tenants may pay for utilities (directly or via RUBS) but they don't pay for insurance unless you mean renter's insurance. The owner pays for building fire and hazard insurance as well as liability. 

$380 rent is way too low. Most of your expenses do not depend on rent and annual expenses per unit would be $5000-5500 in most of the country. This means you're losing $1000 per unit per year or $36K/year. No wonder it is offered at $19.4K/unit!

Tenants may pay for utilities (directly or via RUBS) but they don't pay for insurance unless you mean renter's insurance. The owner pays for building fire and hazard insurance as well as liability. 

If your rents are $11K, there is no way your expenses are only $1K a month. How many units are in that complex? What is an average rent?

Your building should apprise for $1M in order for you to refinance $700K out.

To figure out the value you need to know projected income and expenses and market cap rate.

E.g. if the market cap rate is 10% your building need to produce $100K NOI annually for $1M value.

NOI = income - expenses, so for this example you need $200K gross rents and $100K operating expenses.

Your actual numbers will be different, of course.

@Tyler Winchell as you know, Colorado is a very big state. I don't think you have been quite clear enough. You own a home in the Four Corners area and you want to create rental income. Do you want to sell the house to get the money? Do you want to rent the house? Do you want to borrow against the house? Do you want to 1031 into a larger multi-family? Do you want to own other properties in the Four Corners area or are you looking elsewhere? @Travis Harden and I can't help without more info...