All Forum Posts by: Amy Zemser

Thank you! I'll look out for it. All best. 

I was wondering if anyone has tried or heard of Brian's Page's Airbnb formula for signing leases on rental units and then using the apartments as a full-time Airbnb model. I've been an Airbnb host for some time, and I'm intrigued by the idea of operating on a larger scale and automating the front-desk aspects. Anybody heard of this guy? I'm considering his tutorial...

http://bnb-formula.thinkific.com/courses/members

Why would it complicate from an accounting perspective? They just don't pay their last month; it's prepaid. Curious what you mean about that. And thank you all for responding so quickly! 

Hello Landlords, 

I have a student rental in upstate NY and had a question about early security deposits. Students are on an academic calendar, and I always secure my students/tenants during the month of February for a June-June rental. Students always secure their off-campus housing for the upcoming academic year in February, so advertising early is a must. If students bail on a lease in May or June, I will not be able to fill the rental. 

I usually collect first month, last month, and a security deposit a full three months before the move-in date. In the past I have taken a non-refundable $500 to secure the rental. I do worry, however, about students backing out last-minute, and was wondering how much of a deposit is legal to keep as a good faith on renting the property. Can I simply deposit the entire first/last/security and tell them this amount is non-refundable if they back out in June? 

Thank you and all best.  

Hi Rick, 

Thank you for your response. I've been going to REIA meetings for a while now. I've heard about all of these options, but I have many questions about all of them.

When you say marketing, do you mean I should send yellow letters to absentee landlords or folks that have a lot of equity in their homes to try and get them to sell at 70% below market value? As if I were a wholesaler? Don't those folks just want quick cash sales?  

What percentage below selling price would you offer a house listed on the MLS? 40? 50?

Thanks very much and all best.  

Amy

I've thought about all these things, but they seem impossible. Tell me this: why would someone opt for seller financing? What's in it for them? 

Hi Bold and Brilliant Investors,  

I was wondering if anyone could help me figure out how much I can realistically afford. I've been up nights running numbers with various metrics, but it seems to me that I just don't have enough money to purchase an investment property anywhere. 

I've been pre-qualified to borrow about $240,000 through a mortgage broker. I have great credit and 50% equity in my own home (a zoned two family). I have about 10k in cash and a home equity line with 45k. The interest on the heloc is currently at 3.5%, but it's variable. 

I've been looking at MLS properties. I realize better deals come through other avenues, but I don't see how a wholesaler would work with someone who wants to use a lender.

Does anyone have an opinion? How do I get into a duplex, tri, or 4 with these numbers? 

Thanks very much, 

Amy

Thank you all. 

1 - I thought that "comps" don't apply to multifamily buildings. 

2 - If a novice should practice daily deal analysis, then by everyone's advice here I guess I have to visit a multifamily unit every day? And get more accurate information from the broker? I was under the impression that you run through practice deals on a spreadsheet to get a sense of how much you should offer (as a practice vehicle).  

3 - According to Brandon, you make a lot of offers. You do a quick analysis via the internet, figure out your bottom line, and throw out a (often low) number. Most sellers won't bite. But Brandon says, throw it out there anyway. You never know.  

I just don't know how one is to make any sort of offer without acquiring accurate information. But acquiring accurate information seems to involve much more than just running a listing through your excel machine. 

I'm a SFH landlord interested in getting into a fourplex. Brandon says spend every day analyzing deals. So I do. And I am. But how do you analyze when the information multifamily MLS listings provide often makes no sense? One fourplex property owner I came across today, for example, listed his insurance at $2400/yr. Isn't that a bit much? And he didn't write down the complete rent roll. How can I work with that?

I can't go ahead and ask for schedule E before even seeing a place. But how do I get through deal analysis practice if MLS listings are incomplete or have exaggerated profits?

Also, how do I determine what my bottom line offer should be? Is it the going cap rate in my area? Is it what I can afford to borrow? Are closing costs generally 3 or 5 percent? Will there be points? It seems like I'm guessing pretty wildly in many of these practice deals, so I can never trust the output the spreadsheet provides. 

Most multifamily listings don't show interior of apartments. How am I supposed to practice estimating rehab costs if I can't take an initial internet pass at the inside? Do I just look at actual properties with my broker every day? He will slay me!  

And lastly, AUGH! 

Thanks very much, all.  

Amy 

Hi Fellow Landlords!  

I had a quick question about a student rental and boiler maintenance.  

I've been paying the oil company about $380/year for a service contract that involves the company sending a technician out whenever there is a problem. It's a fairly old boiler, so I can expect a few calls every year. If I use the company to deal with problems (at their repair prices) it may be worth the money.  

It's a big payout, though, and once my plumber fixed a problem that the oil guys couldn't figure out.  So I ended up paying twice.  

Is it better to use a service contract or have your hired guy/plumbing guy check things out? If it's the weekend in the middle of a freezing winter, my plumber might not be available.  My next question becomes then: if this happens a few times, say no heat on a Sunday but my dealing with it ASAP, do my tenants have a right to freak out?  I have some tough ones this year...

The real benefit with a 24 hour service contract is just that -- the 24 hour service.  It does happen for sure once or twice a year. Is it illegal to make my tenants wait 24 hours for heat in the cold of winter? (They are students and can always bunk up with friends very easily) 

Thank you all so much, 

Amy