John Soforic
50 percent rule in my world
In reviewing past threads, I admit being sent into a mild panic over this 50% percent rule of thumb, despite the fact that I am experienced and currently own and operate 41 units... single family and duplexes with ...
Kirk B
The Reserve Expense Prinicple of Property Analysis
I was looking at a property that had extremely high taxes in relation to Gross Rents:
2 apts $500 ea, $1,000 Gross
Taxes: $4,250/yr $355/month
...
Scott Bastarache
8 unit building
I have an opportunity to obtain an 8 unit building where the owner is willing to finance. The building is currently 100% occupied. Here are the numbers:
Purchase Price: 249,900 financed @7% I/O for 30yr term
Gross...
Eric Roth
Expense Ratios - Small Residential Properties
Hi All,I'm looking at some 2-3 unit buildings in the Queens, New York area and putting together deal analysis models. I always thought ~50% was the suggested expense margin to estimate, but when actually putting toget...
Marc C.
Paying Property Manager from NOI, instead of gross...
Has anyone ever had a property manager accept a percentage of the NET vs. the gross? In that way, they are encouraged to keep expenses under control...something they usually have a problem with. (My current manager is...
Account Closed
Is This Worth The Numbers??? Advice Needed Please.
Greetings, Have a potential to purchase a 6 unit (2 house, same lot, 4 unit and 2 unit) The details are as follows.Year built: 1900 +/-2 houses: 1- 4unit and 1- 2unit on same lotList Price 224,995 (assuming a 190,000 ...
Marcel Pean
Small Multi Family Expenses
When estimating expenses for a small multi family property (2-4 units), I understand that some expenses can be found just by asking utility companies, property managers and other investors. However, is there $ amount ...
Evan Tuuk
Updating Commercial PM Systems from "Mom & Pop"
I am looking for advice on updating some systems with a commercial building I help manage. Basic intro - I starting working for a local investor/property manager in my small town as a kind of personal assistant. We ma...
Eric H.
When to Record Rental Income w/ Property Manager
I use a property management company and they receive rent at the beginning of the month but don't disburse it to me until a few weeks later.For my bookkeeping would I want to record the rental income when I actually r...
Justin Frank
Multi Family Expenses
What is a good rule of thumb everyone is using to calculate expenses on smaller multi family facility’s when doing a quick back of the napkin evaluation on a property (5-20 units)? I typically use 50% of the stated gr...