All Forum Posts by: Aaron T.

@Joe Villeneuve  @Andy Mink Good discussion. I see your thought process. If you do not statistically account for the repairs and CAPEX in your evaluation, do you just set aside your cash flow to reinvest or put it in savings?

I am accounting the percentage for it which will reduce the number we refer to "cash flow", although that money sits in a bank account accruing month after month....unless of course there is an expense. 

I am not spending my "cash flow" or the expenses, I am building those accounts up, so I can then reinvest. 

@Alex Roehling  I am in Florida, so anything I buy will be 50s and newer. There is a lot of new construction in my areas, so maintenance, in theory should be lower. FL houses are mostly CBS and shingle roof on concrete slabs. 

I am hearing 10% for property management. If i pay first months rent for placement and then 10% perm/m for property management, that comes out to roughly 17% average PM expenses annually. Do you account for placement of tenant in another area?

 most of the property management I have seen in Tampa will charge one months rent to place a tenant and 10% per month to manage the property. 

If i manage myself I can put that back in my pocket to reinvest. 

kind of my thought process.

Andrey if you go to the top toolbar to the analyze tab, there is a rental property calc in there. 

I am using the BP rental calc to evaluate properties for potential rental performance. What numbers is everyone using for their expenses?

I am using:

Vacancy- 6%-8% this gives me one months rent at 8% or just enough to usually cover PITI at 6%

CAPEX- 5% - If i were to have to replace a roof at 15 yrs, $8k roof/ 15 yrs = $533 yr /12months = $44 a month for CAPEX.

Repairs- 5% - for the unknown or unexpected repairs

Property Management- 12% - If I need PM to place and manage a property for me. 

Thoughts?

welcome to the site Art. Get with Doug Marriot, they hold a BP meet up in the local area.

Cheers

 Yes, Blackstone and subsidiaries like Invitiation homes scooped up a lot of SFRs. 

do you offer HELOC on investment property? Or way to access the equity in it?

looks good. 

I normally run my numbers with a 12% property management, if I need to have them place a tenant and the monthly fee, and 8% vacancy which is one months rent per year.

@Jerry Padilla 

Is the 75 LTV standard for most or all of the lenders MFR?

I have called a few lenders today looking for pre-approval for a property, but a couple want it to be owner occupied and another wants 30% down.

I am looking to get pre-approval for a conventional/portfolio loan with 15% down, and I don't plan on occupying the property for more than 6 months.

Who are the local investor friendly lenders you have had good experiences with?