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21 July 2024 | 15 replies
I know the specific market is a factor, but are their key numbers or ratios (like the 1% rule) that you have found to be meaningful or helpful, obviously the numbers would be different for a turnkey vs rehab.
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20 July 2024 | 10 replies
@Dave Rav I think there are many different types of titles, deeds, etc.
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21 July 2024 | 10 replies
This applies to current year tax deductions, and you can also employ a “look back” cost seg study where you can retroactively reclaim any missed deductions from previous tax years.By filing a form 3115 and calculating the proper 481(a) adjustment, you can recapture and correct any erroneous depreciation in prior years and claim the difference in the current tax year as a lump sum.
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21 July 2024 | 12 replies
Ask about the maintenance history.Units: Visit as many individual units as possible to assess their condition and note any necessary repairs or updates.Structural Issues: Be vigilant about signs of water damage, mold, or pests, which could indicate larger problems.Safety Compliance: Verify that the property meets all local safety and building codes, including fire alarms, extinguishers, and emergency exits.Financial and Operational AspectsRent Roll: Request a detailed rent roll to understand current rents, lease terms, and tenant occupancy.Expenses: Get a breakdown of all operating expenses, including utilities, maintenance, insurance, property management fees, and taxes.Income Verification: Ask for historical income statements (preferably 12 months or more) to verify the revenue.Vacancy Rates: Inquire about the historical and current vacancy rates and how they compare to the market average.Tenant Profile: Understand the tenant mix, including residential versus commercial tenants, lease lengths, and tenant turnover rates.Property Management: Find out if the property is currently managed by a professional management company and if you will retain or replace them.Legal and ComplianceZoning Laws: Ensure the property complies with current zoning laws and inquire about any zoning changes that may affect the property.Rent Control: Determine if the property is subject to rent control or other regulations that could impact income.Permits and Licenses: Check that all necessary permits and licenses are up to date.Value-Add PotentialRenovation Opportunities: Identify areas where you could add value through renovations or upgrades.Rent Increases: Assess the potential for increasing rents based on market rates and property improvements.Additional Income: Explore opportunities for additional income streams, such as laundry facilities, parking fees, or storage rentals.Environmental ConsiderationsEnvironmental Hazards: Check for any environmental issues like asbestos, lead paint, or underground storage tanks.Flood Zones: Verify if the property is in a flood zone and the implications for insurance and risk.Questions to Ask the SellerReason for Selling: Understand the seller’s motivation to gauge the urgency and possible negotiation points.Recent Repairs and Improvements: Ask about any recent capital expenditures and future planned repairs.Tenant Relations: Inquire about the relationship with tenants and any ongoing disputes or issues.Due DiligenceProfessional Inspection: Hire a professional inspector to conduct a thorough examination of the property.Appraisal: Obtain an independent appraisal to verify the property’s market value.Legal Review: Have a real estate attorney review all contracts, leases, and legal documents related to the property.By covering these aspects, you’ll be in a stronger position to make an informed decision about your potential investment.
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20 July 2024 | 8 replies
I know there is a company that is working to use AI to streamline self-storage revenue, though I cannot recall the name right now.
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16 July 2024 | 5 replies
I am looking for any realtor/wholesaler/title company in the Durham North Carolina area that can assist me with filling out the North Carolina state contract and assigning it because I cannot find where you assign the North Carolina state offer and purchase contract
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20 July 2024 | 2 replies
I can't imagine the short-term private rates, and the personal loan rates are much different right now.
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17 July 2024 | 3 replies
For now, I am getting my property management company come over to clean up the unit again.
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19 July 2024 | 13 replies
Properties are so much more expensive it seems like a whole different world than a lot of real-estate investors likely started in and it leaves me wondering if real-estate will still be a strong investment for my generation or really just me when I am in my 20's.
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20 July 2024 | 18 replies
Great macroeconomics - population growth, job growth and lots of companies moving here.