All Forum Posts by: Will Gebbie

@Curtis Davis

Brrrr method and get most if not all of your money back. Then you can buy a lot more than 2 properties.

@Mason Gibbs

Maybe you can find a cash buyer in your area who will partner on the deal with you in exchange for the down payment or maybe the access for private money for the down payment. To find a cash buyer you can go to the comps that you used that are flips and ask the listing agent who the flipper was or if he knows and investors in that area. They should be more than willing to help you out and solve your dilemma.

@Gloria N Gear Great advice thank you. I will definitely do that.

@Stephen Brown yes good idea. I think generally I’d be interested in using the brrrr method so finding properties where I can be all in with rehab at 100-125k and then hopefully with an arv of 150-180. That way I have enough for a down payment with a hard money loan.

@Tesho Akindele glad to know it has been done before because I feel like people always say to do a few local deals first! Thanks for the encouragement.

So I discovered Biggerpockets about 9 months ago, and because I live in nyc I read the out of state investing book by David greene. Now I feel like even though I understand using a team to help build your portfolio I still feel nervous about investing out of state because I have never done a local deal before or any deal period. Has anyone done a successful out of state deal as their first deal? Or should I try and find something a couple hours a way? In my opinion at that point I feel like I should just pick an out of state market because the New York area doesn’t seem the best place to invest right now for someone new.

Thanks alot!

@Greg Scott, thank you for the reply. What do you suggest is typical for repairs and pm? Do you use a percent of the total rents (for example 5% maybe)? And for small multi-family do you usually use 8%? I know it's all dependent upon the area but I am just trying to get a general idea.

Hello all,

I am a newbie and whenever I go on Loopnet and look at multifamily listings, I notice that a lot that on financial Summary's are exaggerated. For example, today I was looking at a 4-plex listed at $400k at a 6% cap rate, and the listing agent provided the NOI broken out but didn't include anything for maintenance/repair costs or project management. When adding about a $1/SF/year for repairs and 10% property management and still using a 6% cap rate I was then looking at a offer price of $270k. Would this be something that I could use to justify a low offer, or do cap rates usually not account for Property Management and such? Also I know 4 units and under fall under residential property's, thus relying on recently sold properties as comps but I was wondering if this logic can still be applied.

Looking at airbnb investing in Colorado Springs but I'm not sure how to analyze a deal (such as a sfh). What percents do you typically run for property management vs maintenance/ cap ex, vacancy, and other costs? I know for longterm rentals I usually run 10% pm, 20% maintenance/capex, and 5% vacancy, but not sure how much is similar if any? And are there any guidelines you can use to determine what the average daily rate is (like how there is the 1% rule for long term rentals)? Any info on this subject would help!