All Forum Posts by: Yahav Caine

John,

I like your feedback and I'm going to act on it exactly like you said. I put in 10% for repairs and an extra 5% for capex.

My question was more of trying to understand if I'm being too conservitave and killing a deal that is actually a good one, due to my lack of  knowledge. Seems like my numbers are where they need to be. 

 Thanks for the help!

NOI is about $15,400. No rehab required. But I'm kind of having difficulty understanding why the repair costs would have anything to do with how much money the place is generating? if someone breaks something for example, the cost to repair it would be the same regardless if the NOI is 100K or 5K?

Correct me if i'm not looking at this in the right way.

Greg,

Thanks for the feedback. The $1500 does not include insurance, taxes, water. I'm referring only to the repairs and maintenance of other things. In the real estate deal calculator it is described as the "Repairs and maintenance" field.

I'm in the middle of a negotiation of my first deal. It's a 1963 multifamily 4plex brick building. Total of approx 3500 sf. This is a low income neighborhood, I'm not sure if some of the tenants are section 8, I'll know that only if we go into escrow. The seller said repairs and maintenance are $1500 a year, which sounds a bit low. I budgeted $4000 (a year). The difference in this cost I did, pretty much make the deal a lot tighter for me based on the price he wants - leaving me on a 8.45% cash on cash (25% down).

My question is did I overbudget this or is that a decent cost for repairs in such a building?

Hey guys,

I was researching about how to hold my upcoming real estate purchase, and understood that a Wyoming LLC or LP will provide the best protection because of the charging order laws over there

My question is, can I buy say a property in Arizona, and hold it in a Wyoming entity? And what would be the benefit (if at all) holding the property in an Arizona entity that is then owned by a Wyoming entity (LLCs or LPs, doesn’t matter for this discussion)?

Also, I'm debating if I should use an LLC or an LP. I live in CA so I understood that LPs aren't subject to the $800 FTB yearly minimum. However, because they are considered completely passive (the limited partner of course) I would not be able to claim any depreciation (and I want to, I work in construction so my CPA said we can make a claim that I am a real estate professional and ideally offset off a lot of earned income). – any thoughts on this?

Thanks guys.