13 January 2023 | 10 replies
For deciding what to pay, I look at both cash on cash returns and equity multiples, balancing to two to see if I can derive an attractive return from the investment.In terms of refinancing, the lender is going to want to see your NOI performance so they can determine what debt load the property can handle given their DSCR thresholds.
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3 June 2017 | 8 replies
I didnt do any additional comparison between neighborhoods to derive that information. 3rd highest death rate doesnt necessarily mean that people are getting murdered all the time it just means that in that neighborhood the age of people dying is about 70-71 years of age, higher rate because of the lower life expectancy, but the age range does tend to have some older population also a pretty small population of about 5500 and very few children.
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18 December 2018 | 13 replies
I like the data you can derive with regard to comps on sales and rents, very impressive.
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15 April 2015 | 3 replies
we set our cap ex budget by getting quotes on roof replacement, exterior painting, etc factored in the life span + increases for inflation (e.g, we assume its going to cost more to repaint in 10 years then it is today, so we factor that inflation into our calc) to derive an annual accrual amount on cap ex.
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12 December 2018 | 24 replies
They're also derived from back end numbers on top of bridge debt, and you're essentially levering the deal even more.With the inversion of the 2 and 5 year treasury, the 10 year treasury not being far off, and another rate hike imminent, it just seems more and more likely that a flattening, correction or recession is on the horizon.Back to the question and my long winded point, I think RE is still very attractive, if you can buy correctly and plan for some downside in the near future.
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7 February 2023 | 21 replies
With 5+ units; I thought most value for loans was derived from rental income?
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7 February 2023 | 24 replies
They will multiply the agreed upon monthly rent amount by 75% to derive the true rental income (this 75% factors in vacancies and management expenses).
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18 November 2017 | 16 replies
I'm not doing this so I get to keep payments out into my 60s and 70s.The word mortgage, which is derived from the French word - muerte- means 'til death.
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13 January 2023 | 18 replies
. §1.401-10(c)(1).The purpose of the earned income rules from self-employment is to provide a solo 401k plan for the self-employed so that they can save for retirement, and to exclude inactive owners whose income is derived only from investments as investment income is not considered “earned income.”Lastly, you will want to preform the management of the properties continually and regularity with the intent to generate income or profit; therefore, you rental activity will be deemed a business.
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16 August 2022 | 82 replies
I don't think so but, then again, they don't have to be in order to derive value.