All Forum Posts by: Anthony Favoroso

Also to add. We have the money to float the mortgage we just thought it would be a better idea of saving that capitol for our next project. 

Hey everyone! 

After 2 years surfing BP i finally pulled the trigger and closed on my first multifamily property in upstate NY in a college town. I would like to thank BP and everyone for all tips and tricks. I have both apartments already fully rented for the Fall Semester, I am in the process of painting and doing minor repairs. My partner and I were throwing around the idea of taking out a LOC of around 5k which will cover floating the mortgage for the summer months since students dont move in till end of august. the mortgage taxes and insurance comes out to about 950 a month. So instead of bleeding out savings accounts floating the mortgage we thought about the idea of a LOC since the interest is tax deductible anyway. Please let me know what you think about this and if you have any tips or pros and cons. Thanks everyone!

This is for some of you experienced investors.. Looking back at the start of you're investing careers if you had saved 25-30 thousand dollars to start with knowing what you know now how would you invest it in today's markets?

Matt,  thanks for the reply.

yes i will be renting to college students and your right, i will probably have to throw a little more towards maintenance. The 2000 is a little low but the property is pretty much rent ready but will need some paint and more finishing touches. Thanks for the input!

Correction* Interest rate is a 30 year fixed at 4.5%

My partner and I are new to the real estate game and just put an offer in on a duplex and wanted to know what some of you more experienced investors thought or if we were missing anything.

This will be a student rental.

99,000$ agreed upon price

(comps in area in the 120-140k range)

2,000$ in repairs

estimated closing costs 5,000$

25% down 24,750$

interest rate 30 year fixed at 3.5%

taxes 5,417$

insurance 700$ yearly

Property management 20% (in our area they charge 10% but we put another 10% to factor in repair costs, vacancys or an "emergency fund"

 Utilities 400$/month

4 units at 550$/month or 3,300$ per semester

2,200 total gross from rent/month

total monthly expenses(mortgage,insurance,& utilities) 1,776$ 

net operating income 5,078

 cash flow 423.20$/month

ROI = 16%

Thoughts? are we missing anything? Thanks!

Does anybody invest in the student rental market in upstate NY? I'm currently looking into the oneonta area and wanted some thoughts and tips from some experienced investors. How are you finding deals? Recommended Lenders? Investing strategies for a student rental market? Any feedback would be great! 

Hello bp,

My partner and i are eager to jump into our first deal. we are going through the process of building a team for our real estate business. Our current situation is that one of us has the capitol to invest upfront but both of us want to be 50/50 partners. I am scheduling a date to meet with my attorney to help set up our agreement but wanted to have an idea of how others structure their real estate businesses and how they set roles and duties for each partner when first starting out. If anyone has actual agreements it would be much appreciated. Thanks!

Can anyone that invests in the Charlotte Area recommend any buying agents that don't mind working with out of state investors? and Property managers? I'm trying to establish a team to help me get started and learn the area. Thanks!

@David Chwaszczewski I appreciate your help. What is your role in the market? Are you an investor yourself? I'm interested in single family homes in good neighborhoods with minor renovations needed, if any. Turn key properties would be great. Who would you recommend using as an agent or wholesaler in the area? Are there certain neighborhoods or towns you would recommend? Also, do you have a property manager you work with? Sorry for all the questions, very eager to get a property in this area and would prefer to work off recommendations.