All Forum Posts by: Victor H nieves

With your proforma, something I recommend adding is your cash-on-cash return, including principal paydown. People often forget that the principal paydown, which reduces the cash-on-cash return, is an increase to their value.

Clint

I should have done a case study, IT WAS CRAZY to say the least ... Ive taken a year off of Real Estate after that Rehab (didnt even watch TV about it!) ... too many lessons learned & bruises... but Im now back into the Game. First currently buying a turnkey....then in 2020, I prefer to do a Rehab.

Can you give a quick rundown about the rehab and what went wrong? Was an interesting thread to read!

Too many crazy things, but still have the property and just raised rents $100 per side. Even with all the headaches, I think it will do fine and it was a great learning lesson

2 Votes

Originally posted by @Clint Murphy:

I am coming in late to the game Victor and found your post, as I am talking to Memphis Invest right now.

Will keep reading your chain to learn more and am interested in your actual experience.

Clint

1 Vote

Originally posted by @Clint Murphy:

I am coming in late to the game Victor and found your post, as I am talking to Memphis Invest right now.

Will keep reading your chain to learn more and am interested in your actual experience.

Clint

so did you buy from Memphis Invest?

0 Votes

Originally posted by @Peter Schuyler:

Victor, I will also post a Case study, as I did the Memphis Property Tour in May 2018 and ended up putting a purchase agreement down for a 3/2 in Memphis as a renovated unit to be completed this Sep. It was delayed because the tenant would not leave in June.

Some things I found grossly wrong with the ProForma:

As you know they require a annual yearly inspection fee for $75.00 which should be listed
The collect 50% rent of one month to place a tenant which really should be built into the Proforma, because its significant and predictable. Even if you just renew there is a fee that is known and predictable.
They also advertise 4% vacancy in the Proforma, but the PM handbook states the average vacancy is 45 days across their portfolio which is 12%. That is quite a difference.

Im looking forward to closing on my M.I.P. property, but the proforma's I think are way under estimated. Even my taxes were estimated wrong and closing costs were double what they quoted, using their recommended lender, etc.
They also do

Originally posted by @Victor H nieves:

UPDATE:

4205 Cedartree Drive is almost mine!

Jan 11:

Closing - signed the final Closing Documents with the notary
Cash to Close - wired the balance of the funds to title company today.

Looking for to finalizing and obtaining a renter with the investment managed by M.I.P.

Peter,

yes I never use their Proforma, I build my own BUT you make great points on annual inspection & lease up/renewal cost.

0 Votes

Originally posted by @Kevin Harrison:

Thanks for this update! I’ve been looking to start with a TK property as well. Question is: Since hindsight is always 20/20, would you do it again

Kevin, so did you buy?

I would do it again and I am currently closing (Dec 12) on another turnkey in Memphis.

2 Votes

Originally posted by @Kevin Grove:

Originally posted by @Peter Schuyler:

"They also advertise 4% vacancy in the Proforma, but the PM handbook states the average vacancy is 45 days across their portfolio which is 12%. That is quite a difference."

Yes, if the average stay is 12 months and the average vacancy duration is 45 days, then you would enter 12% vacancy into your Proforma.

But many good turnkey operators have a 36-month average stay. In that case, the you would enter 4.1% vacancy into your Proforma.

Vacancy formula: 45-day average vacancy duration / 365 days in a year / 3-year average stay = 4.1% vacanc

Great commentary.

My tenant did renew so im hoping & looking forward to year 3 in a few months :)

1 Vote

Originally posted by @Kevin Harrison:

I’m curious how amlost a year later, how has your experience been? Are you still receiving monthly income? Has your tenant stayed? Any repairs needed addressed? Would love to hear your current situation!

Kevin, after a year, things are going well enough. Still have a renter and cash coming in.

0 Votes

Can anyone recommend a Lender in Indianapolis for Cash Out Refi?

0 Votes

@Cameron Lange I'm hoping to do a post about it once its complete in 1.5 weeks. I wont go as in depth as this Study though...at least thats my first thoughts.

1 Vote

All Forum Posts by: Victor H nieves

Victor H nieves has started 2 posts and replied 72 times.

Post: I'm in need of a hard money Lender

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: MEMPHIS INVESTMENT PROPERTIES Case Study

Post: Indianapolis - Cash Out Refinance

Post: MEMPHIS INVESTMENT PROPERTIES Case Study