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17 December 2024 | 13 replies
Without this foundation any money spent on gurus, courses, books mentorships that teach techniques and methods is WASTED, even if the methodology being taught is valid.
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25 December 2024 | 60 replies
Even in the nice locations, most top out around $2,800.Of course there is also your increased insurance, vacancy, repairs, CapEx, and the never mentioned reduced rent on the main house since having a stranger living in your backyard usually isn't appealing to most renters.
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19 December 2024 | 7 replies
Otherwise, yes you have to either excavate and repair and replace or run a pipe burst through the line, which is usually as expensive as excavating.
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22 December 2024 | 8 replies
Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.
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22 December 2024 | 9 replies
I learned this the hard way personally and had to get mine repaired.
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3 January 2025 | 26 replies
A seller could also refuse to pay any concessions for buyers closing costs, appraisal required repairs, etc. but it would be to their own detriment.
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17 December 2024 | 13 replies
As someone who used to work in SEO, I can see that the structure, length, and comparison format are classic SEO techniques.
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27 December 2024 | 66 replies
So there will be the cost of the inspections (not cheap) and the cost of the repairs.
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25 December 2024 | 11 replies
If one or more units are vacant, the remaining units often don’t provide enough cash flow to cover expenses, making it harder to meet operating costs.Maintenance costs: A fourplex comes with four times the appliances, plumbing, HVAC systems, and other components to maintain, leading to significantly higher repair and maintenance expenses than single-family homes.If you want to see the detailed calculation, read this BP blog - More Units Doesn’t Mean More Money—Why a Single-Family Home Can Beat a Fourplex.Resale value: Multi-family properties have a limited buyer pool—mainly investors—who base their offers on CAP rates.
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10 December 2024 | 1 reply
I have it written in my leases that tenants are responsible for clogs as well as damage from clogs. I have lengthy conversations when tenants move in about letting us know immediately if there is a clog, to stop using...