All Forum Posts by: Victor Longinotti

I am seeking recommendations for an individual or company that can provide financial analysis and projections for a property we are considering purchasing. We own several single and multi-family rental properties; however, financial analysis and spreadsheets are not my strength. Therefore, I am looking to outsource this portion of the deal. I am confident that the numbers are sound, but I would like to obtain multi-year projections and analyses of different scenarios. These are not massive deals, sub 1M. Thank you in advance.

I currently have 3x, 2x and single family rentals and some cash to burn. I live in a super hot market and am using some equity to invest in other properties, locally does not make financial sense.  A former employee (who I really trust) purchased a 4-plex  and wants to invest in more properties in another state.  He presented me with some good deals and wants me to front the down payment, he will take the loan and manage the properties.  I have purchased properties using "drug dealer math" in the past and the deep analytical side has never been my strong suite.  So my problem is figuring out how to structure our partnership.  75/25?  Take into account the management he is doing.  He is earning sweat equity by doing that probably?  We are interested in improving and getting some money back to reinvest, so his time could buy him equity?  Just not sure how the money should be split upfront.  Any advice is appreciated.  I think I am interested in some kind of split.  I know a lot of guys will say I should maybe pay him a referral fee, or take 100% until I get my investment back, but I want to make it beneficial for both of us.  I am sure someone is in this partnership currently. 

Looking at these two cash out options. One is at 4.75 with an origination fee or 5.25 with no fee.  Let me know what you think of these documents and if you have any follow up questions.  This is for a triplex we are looking to hold for the long term, we do not need to do any repairs in the immediate future, we do have cash reserves, the property rents for 5K/month.  I ask because although I understand the processes, read, research and actively pursue properties, math and analyzing the financials has, unfortunately, never been my strength. Thanks for the input!

No one uses the garage at all to my knowledge.  There is ample off street paved parking for the unit, it's a good point but I do not think we would need to lower rents at all.  Also the property is currently renting for $3,350 with some room to raise rents to the $3500-$3700 range. 

We are doing a cash out on one property to purchase another. We are a self-employed family buying rentals on the side to hold. The current property we are looking at buying a triplex.  This house has some room for improvement in a few ways but I have a specific question about which path we should take, we have about 50K to invest in this property before doing another cash-out.  As I said there is room to improve the units and house with new paint, some general repairs, appliances in the units, floor, bathroom updates.  HOWEVER, there is also a huge two car garage that could be turned into a 1-2 bedroom unit grossing $1200-$1500 monthly.  If I am thinking in terms of getting my down payment back to invest in another property then which of those scenarios may work best?  I am thinking the new units add more value if I am looking to sell to another investor, but if I am just looking to refinance for more value will an appraiser see that as an improvement to increase the value of the home, or will the other general improvements get me that increase.  Any input is greatly appreciated, we can also get the property for around $500k in an extremely strong rental market. 

Hey BP Community.

I am looking at purchasing a duplex that was acquired in a tax lien sale.  We would be purchasing from the people who bought the house who are acquaintances.  We are having a disagreement on how to approach the house.  The two scenarios we have are as follows.  Purchase the house on land contract for 25K with $2500 down at 9% interest with payments at $500 per month.  This Duplex brings in $425 per unit and has had the same renters for 5 and 7 years.  The rent is low for the area.   We could get higher rent but would have to clean it up and are choosing to keep the tenants in to avoid headaches right now.  This scenario above is about a 0% roi.  INSANE right?  This is the plan my business partner is considering because getting into his first property he wants to have as little skin in the game as possible and potentially OK with that and owning the house in 5-6 years.  I have owned rental properties for a number of years, but we are partnering in a new market near him.   They will also offer us the house for $18500 cash which is the plan I want to go with.  Home would be paid off in 3 years time.  I could understand the first option if there is a return, but still think its insane.  I feel like I understand these scenarios pretty well and it is a no brainier, but I am looking for perspective on the mentality of waiting years for a return as opposed to buying outright and getting a quicker return but having cash in.  P.S. the house is a dump!!