Joseph Harr
Opportunity cost and deal analysis
10 May 2024 | 5 replies
Right now you're earning 5.14% interest on your money, and you pay income taxes on every bit of that $1800 per year.Meanwhile, I won't even consider a rental property unless it pays me at least 10% cash-on-cash return and a minimum of $250+ in monthly cash flow.
David Ounanian
How do I conduct due diligence on a property before making a purchase?
12 May 2024 | 1 reply
Verify if there are any outstanding violations or issues that need to be addressed.Financial Analysis: Review the property's financial records, including income statements, expense reports, tax assessments, and utility bills.
Jake Andronico
"I'm waiting for prices to come down" - It Happened Already!
12 May 2024 | 20 replies
.- Personal savings rate as a percentage of disposable income is very low (3.6%)- Unemployment is very lowMarkets don't stay ecstatic or suppressed forever.
Brendan Quinn
Market research tips
12 May 2024 | 2 replies
Knowing things like median income for an area, median rent , population growth, unemployment and investment of companies are some information that id like to research.
Nathan Gesner
Are you aware of these scams?
10 May 2024 | 14 replies
Hundreds of websites allow people to create fake paystubs, tax returns, W-2, bank account statements, and more.
Tasha Williams
How to buy a 4 unit property at age 18?
11 May 2024 | 4 replies
Hello everyone,I'm 18 years old and with average FICO score 715, I have a 5-10 percent down payment, with only 6 months of full-time employment (annual income 52k) and 1 year of part-time work history (annual income 20k).
Emory Clayton
What are you charging for Tennant background checks?
11 May 2024 | 3 replies
This includes income & asset verification, tenant's credit, criminal, and eviction reports.
Carlos Ptriawan
Biggerpockets and AI
10 May 2024 | 7 replies
Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.
Allen Parker
Too many eyes on one area
12 May 2024 | 18 replies
Something more like Rent-Price Ratio and local income growth would be better.
Jae Oalmer
New real estate investor
12 May 2024 | 21 replies
Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.