All Forum Posts by: Adam Tafel

Fanny/Freddy have put special provisions in place to help homeowners and landlords. Has anyone read the fine print? Wondering if there is any downside to doing this for a few months. Even if your property is fully rented, this is essentially a government-mandated interest-free loan. The program might only last a few months, but what if I'm not seeing vacancy issues until fall? It would help to stock up the extra cash reserves, assuming there are no fees/credit actions associated with requesting forbearance?

@Tyler Frost Just a thought- most agents would jump at the chance to be your go-to for buys and sales. If you approached me with this idea I wouldn't need any profits from the flip to be happy, and I'd still work incredibly hard analyzing properties, running comps, negotiating offers, etc. If you need another partner to obtain financing you might consider partnering with another contractor or lender? Consider your agent a low-cost teammate, we'll do a ton of work for free. 

If you end up teaming with an agent you could always subtract their commissions from their profit share to even things out. Good contractors who can accurately assess repairs and come out under budget are extremely valuable, while agents (no offense) are a dime a dozen. Know your worth and what you're bringing to the table. 

@Daniel Sabato - 

I agree with Charles- test for a worst-case scenario. Cashflow is the best indicator of a recession-proof deal. Accurate capex/repair budgets equally important. If I'm seeing $200/door on a small multifamily with conservative capex I'm happy, but no two markets are the same. Where are you located?

@Jordan Delacruz @Aaron T. @Mario J Perez @John Burton following this post... I went to Vieques for the first time 5 years ago, I've been back at least once/year since 2015. Probably my favorite place on earth. Any specific recommendations when it comes to agents/lenders? Airbnb market is incredibly saturated, wouldn't expect a property to perform very well on the island, and rents are so low that it's never made much sense. That's been my thinking for the past few years, but maybe one of you could offer some fresh perspective? Rincon would probably be my second choice after Vieques/Culebra. 

Great topic @Patrick Menefee. Taking time to pause and analyze the performance of my holdings has been eye opening. Spending quality time with my girlfriend, cooking meals from scratch, watching a ton of movies. Talking to extended family members daily, playing online poker with old friends. Helping clients analyze new deals, finding new creative ways to be productive. Working on marketing, video content, and other creative endeavors.  

@Leo Fernandez really depends on your market! I'm analyzing a duplex right now for a client in St. Paul, out of pocket expenses will come to around $7000, that's about as low as it gets around here. Where are you located? 

@Kevin Hoff - pretty open ended post, but I'll give you my basics. Capex and repairs can start at 5% each. You'll want a good agent/inspector to analyze the structure and mechanicals, at which point you can get more precise. 8% vacancy is a safe conservative number (1 month/year). Cashflow and CoC returns will vary by market. We like to see $150/door for 2-4 units here in MN, but that's also going to vary based on grade of neighborhood/tenant.

What markets are you looking in? I'm stuck in my home office indefinitely (ugh), shoot me a PM if you'd like help analyzing any specific markets/properties.   

@Fanyal Hoskin - welcome to BP! I was recently in contact with a fellow KW agent in St. Louis. Send me a PM if you'd like me to connect you. 

Talk to your CPA. When you consider tax benefits lost (depreciation) and lost cashflow it might make more sense to rent, if the total gains from the 3/2 outweigh what you'd be paying in rent. I would also talk to my lender about how this would effect my borrowing ability. The bank will want to see that your investments are performing, I'd be a little concerned about how this would effect my ability to borrow. Downsizing to access equity is never a bad idea, especially if you aren't enjoying the place and have future investment goals. 

@Ellie Narie - everyone is trying to speculate on covid19 housing effects. Yes, plenty of buyers are continuing their search for multifamily house hacks, I've done a few video tours for clients this week. Take into consideration the greater economic picture, but don't stop looking for deals. 

My advice? You don't have to commit to a purchase to start the process. Go to showings, analyze properties, and offer if you find a great deal. Waiting a few months won't hurt either, it's unlikely that home prices will rise substantially in the next few months. Network with investors in your market and pick their brains about how rents were effected during the last recession. There's plenty of work to be done, coronavirus aside.