All Forum Posts by: Aran Shinaar

That's great @Mitch Messer, thank you so much!

I noticed a couple of higher than average expenses in my monthly report (locally managed SFR in Lithonia GA):

1. Deep cleaning and sanitization (COVID19) - $400

2. Removing trash and debris (after tenant leave) - $250

3. Rent ready repairs ($275) + ceiling fan fix ($150)- $425

Does anyone know what the average price of these sort of expenses and are they considered higher than usual?

Thanks!

Thanks for your reply @Joseph Weisenbloom. I'd like to build a diversified portfolio in which I'll be able to balance foreign currencies and exploit undervalued markets.

@Joseph Weisenbloom, as a foreign investor, I don't believe I can get a US loan.

Hi everyone,

I bought a few months ago a property in Atlanta GA (full payment) and now I plan to purchase another one in north England  that will require financing.

I have put down 25% of the property purchase price (total of 92,000 GBP, the project is under construction) and have two options at hand:

1. Ask for a regular 8-years bank loan and have a 5,000 ILS monthly payment (I'm from Israel, but feel free to refer it as USD). Assuming the Atlanta property will run smoothly, I'll have roughly 500$ monthly (after expenses) which translates to ~1,800 ILS. After 6 month of building an emergency fund for the UK property, I'll use that also to cover part of the debt. I expect 400 GBP which translates, currently, to ~2,000 ILS. That means that I'll have a negative cash flow that will force me to spend at least 1,000 ILS on a monthly basis.

2. Take an interest only loan for 6%, no loan payoff for the first 2 years. This is a loan taken in the UK and is based on the property (they will cover the 75% needed for the purchase). Assuming this will be a 69,000 GBP loan, we are talking about 4,140 GBP yearly cost, which can be covered by the rent.

There are many considerations here such as foreign currency fluctuations, but I'd like to ask specifically about the pros and cons between these two choices. Option 1 contradicts the 'Cash flow is king' paradigm but it allows me to accumulate equity. On the other hand, this might prove risky in case one or all of my properties will be vacant.

Regarding interest only loans - I know that it will keep me safe in terms of cash flow but it will take time until I'll be able to pay back the loan. I'm assuming appreciation here, but this is dangerous as I am speculating (I had done an extensive research on the local market and similar properties are already sold 10% higher, but still - speculation).

Thanks for replying!

Hi there,

I have purchased a townhouse in GA 3 months ago and had a tenant occupy the house pretty fast.

Unfortunately, due to the cold wave that struck the area  (damaging the HVAC unit) and pest issues, the tenant had decided to leave the property. This will force me to buy a new HVAC and have pest control work the house for about a month.

My issue is this - I was trying to get some information from my property manager (as I am a foreign investor) but did not get any reply for the past 10 days (after I got an email explaining the situation and a promise to give an update ASAP). For those who are experienced with property managers - what is the best way to establish a good communication and make sure the manager does a good work with your property? 

Thanks in advance!

Thanks guys, that makes sense.

I guess I'll consider the roof replacement as part of the total cost and the rest as operational expenses.

If I may, I'd like to know what is the max income tax exemption in the US (I'm a foreign investor).

Hello BPs and thanks for those who answer my question.

I just purchased a single-family property in GA and wondered what is the right way to calculate its cap rate at the end of 2018. As far as I know the basic calculation is the purchase price divided by the NOI. I bought the house for 53k but then I had to pay for roof replacement (4.6k) and some repairs (6k - paint, cleaning, new appliances, insurance first two months payment and more). Should the roof replacement and other repairs mentioned be deducted from the NOI? I'm not sure if roof replacement (which is CapEx as far as I know) is considered an operating expense. Furthermore, there were some expenses such as house inspection that I wonder how do I add them to the equation.

Thanks again,

Aran