All Forum Posts by: Scott P.

I am also thinking about this course - did you decide to try? Any feedback or thoughts?

Thanks,

Scott

Jon,

Great information thank you very much - I will look at that article.

Is there calculator or simple way to calculate how much you can pay for a property if you can only spend X dollars per month on a XX year load with XX interest percentage?

Thanks again,

Scott

Thanks everybody for the great feedback, we are in the very early stages and we have not started to lower the price so I think this is our first step to see what this deal will look like.

I was looking at the deal as good based on the starting offer and that any reduction would only make the deal better. I see now that i am missing some of the factors brought up in this thread.

I will see how low they will go and rerun the numbers.

Thanks again

Scott

Jon,

Do you base your rents on the 1% rule, I have seen both 1% and 2% for calculating rents? My thought was that 1% puts us at 1500, and a 20% bump in current rents puts us at 1,680.

The other possible thought is to increase rents in sections of units to avoid a mass exodus. Maybe 20% of the units at a time to soften the landing of anybody leaving.

Thoughts?

Thanks,

Scott

Brian,

I am using the tools at http://www.finestexpert.com/Home/Index which show the actual rental comps in the area.

If the goal of a rental deal is to increase revenue (rents) how do you best handle the balance of raising rents w/o vacating your building?

Thanks,

Scott

Thank you all for your reply!

Forgive me I think I explained the rent situation incorrectly...

The current rents average about 1000 / month / per unit…
When looking at current rental comps I found the lowest comparable rent is 1,400 / month and the average rental comps are 2,230 / month. So I saw there is a lot of room for increase on the rents. It would seem like we could increase the rents to at least 1,400 and that would be an easy 28% increase.

If there is such room in the rents does that change the deal? Also if there is income on the units and the they are under ARV doesn’t that allow the rents to offset holding costs and the ability to sell off all or some of the units as they market changes or keep the property as an income property? My thought was that this makes sense because each seems like a good deal to buy / hold or to buy / flip.

Thanks for the tip Jeff and just a side note it is not the entire building just some of the units, I will see how much lower we can get below 65%.

Thank you all again,

Scott

I am in So Cal and would like to look for some qualified leads for you. What are the pre-qualifications and questions you would need for a good lead?

Thanks,

Scott

Hello all,

I am a newbie so I am looking for any help please on if I analyzed this deal well. I came across what looks like a great deal to me and i tried to research it as much as possible. Please let me know if you think this is a good deal or not and how I might best go about marketing it.

Deal overview
63 Condos in So. Fl. (on inter coastal) The average price on each unit is 155K. The average unit is 2/2.
The package is available for 9,750,000.
All units are currently being rented (8.21% cap rate)
The current rents are currently 75% of the low rental comps in the area and 48% of the current averages in the area.
The total rents are 800K / yr.
The recent sales comps are showing the units at 65% of ARV, and the home estimate sites (zillow, cyberhomes, etc) show the estimates 200K - 300K.

It seems like this is a great deal all around, but i have not been getting a huge reply yet and not sure if I am missing anything.

Thank you in advance for any help,

Scott