I know we had someone explain how this tool is used but where do you get all the information to fill it out? I mean I am just getting started in doing my first deal how do I find realistic figures? Thanks in advance guys.
This should help:
The link is now also located in the blue "Additional Help" box at the top of all pages.
Thank Joshua I really appreciate your help on that one.
Happy to be of service!
Hello! I am new here and am looking for the same information but the link that was provided is down. Would you be kind enough to post the new URL or direct me to the forum? Thank you.
You should be able to get some information from sellers but always verify. You have to do the investigative work. Rents - get copies of leases, write it as a contingency of your offer if you can’t get it up front. Always be skeptical of rent roll or pro forma. Get owners schedule C so you can see actual rent income and expenses. Use this to check vacancy rate and maintenance cost assumptions. Too many sellers want to base sale price on what rents could be or should be. Then buyer is stuck with the dirty work of bringing rents up to market which takes months or a year or more and may create turnover. Also sellers may understate income for taxes but want to value based on a higher income number. Don’t let seller have their cake and eat it too. Do your homework and if seller won’t get in touch with reality then move on. Check all the costs. Utilities - call and get billing history for past 12 months. Water - same. Trash - same. Property tax - get actual numbers from county auditor, don’t trust listing agent’s numbers. Check the valuation the property taxes are based on, if you buy for more taxes will probably be adjusted up. Factor this into your numbers. Insurance - get an actual quote. Insurance companies will want general info about the property - age of roof? is electric updated ie breakers or fuse box? Type of heat? Etc.
If you want this to be easy you’ll make mistakes. Lessons aren’t cheap. Don’t be the person that learns the hard and expensive way.
Seller should always have "rent rolls", copies of utilities, expenses and of course a schedule "C". You can also look the schedule "E" and operating expenses. If you own a rental you will have all of theses items for tax purposes!
Wow! You guys are amazing. I will take advantage of all the great advice. This is going to be my first multi family house in The Bronx, so I am very excited. My biggest obstacle is finding someone that specializes in Veteran loans. Again, thank you so much guys.
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