All Forum Posts by: Ali Sheik

@Michael Currie @Account Closed  Thanks wholeheartedly for your prompt responses. You have given me the confidence that I can go out there give this a go. Have put a bid on a quad 10 mins drive for me so I suppose it will be worth giving managing it a try if I can secure the property. My return will be anything but spectacular to defraying some of the costs by not hiring an outside agency will certainly help. Thank you for the link as I will certainly purchase this invaluable information. The few books I have read have all espoused managing first to educate yourself regarding the process before seeking outside help once growth is too large for self management.

As a newbie RE investor I was wondering whether or not to manage my own potential properties. Can anyone give me a quick rundown of how to choose whether or not to do so? I see that doing so certainly makes the returns much better. Are management companies worth their weight in gold or is this something many of us should and could do ourselves?  Thanks

thanks @Wayne Brooks  I obviously had it all wrong. Appreciate your response. 

Ha ha. Do I detect a bit of sarcasm there @Brent Coombs?  The question still stands though. Do I have my math and laws correct ? If anyone can answer that would be great. Thanks

Suppose one purchased a 4 plex for $400k and took the standard depreciation for 27.5 years deducting $300k for tax purposes. If I am correct then anything sold above $100k ($400k-$300k) is taxable taking into account depreciation recapture. If one decides to reside in one of the units for 2 years prior to selling will the $500k exclusion take place and gains taxation would only be imposed on a selling price of $600k or higher? Thanks

Suppose one purchased a 4 plex for $400k and took the standard depreciation for 27.5 years deducting $300k for tax purposes. If I am correct then anything sold above $100k ($400k-$300k) is taxable taking into account depreciation recapture. If one decides to reside in one of the units for 2 years prior to selling will the $500k exclusion take place and gains taxation would only be imposed on a selling price of $600k or higher? Thanks

Ok, so I am new at this and need some advice. I have been notified of a possible 8-unit apartment building that will be available and up for sale. What I do not know is the price they will be asking. The realtor is to meet with the seller on Monday and is to get back to me with all the details next week (ie. price,NOI,CAP,etc). Once I have that information I will know for sure IF I want to bid and if so how much.

How does one approach a large bank to ask for a loan from the commercial arm of the lending department? With so many unknowns I almost feel like a fool walking in to the bank inquiring. I have also read that one should have a pre-approval in place for a loan prior to bidding on a property. For those of you with experience how would you go about doing this?

If I decide to place an offer is it possible to get financing in time to close or is this something I should have done earlier?

I hear of people approaching bankers with their spreadsheets/workup to get loans so I would think that not having a pre-approval now isn't fatal.

Too many variables making my head spin. Please advise. Thanks

So I have a prospect that asking price is way too high. $539,000 on $2,010 monthly rent. Triplex. Basically looking at GRM= 22 and would give a 2.5% annual return. Rents below market value. Should conservatively fetch $3,000+/month or more after cosmetic enhancements. Even with the new rents asking price is too high. Price $/sq ft is $210 in an area where most are at $300+. Any savvy knowledgeable people out there have any advice? Asking price? Value add then sell? Walk?

Ha, and some of us are still trying to find our first property to land. Great podcast @Ben Leybovich. I like your philosophy. Just need enough passive income to get me out of the rat race one day. Best of luck with your health

@Antonio Guerrera, Jr. @Rajeshwar Raj   Antonio is correct Raj. I too am in the area and am looking into my first investment property and am finding the prices too high respective to expected income. Not sure where to go from here. I could either look out of area or wait until numbers start to normalize however long that might be. Just need to find where I hid my crystal ball.