All Forum Posts by: Awet Hagos

@Jayce Stewart you could install a $20 energy monitor on the outlets that power the w/d and credit tenants for the usage on a regular basis. Simply multiply the kWH by the local usage rate.

@Andrew Postell first off, best BP post of all time. 

Is it possible to do this strategy if the “all cash” portion is a short-term loan from one of these “cash offer loan lenders” (e.g. FlyHomes) and you’re listed on title and the property deed?

Then the second lien is filed at closing from your LLC. If I'm following correctly, when you go to refinance, the lender will essentially see two liens/loans and pay them both off?

@Sharise S. If it’s possible, try to get your hands on old photos or take photos now and start advertising to find tenants. Let them know it won’t be rent ready until a month from now (or whenever you project it will be ready).

You don’t want to wait until all repairs are finished before starting the screening process. The Tenant placement process will take time and your property will continue to sit vacant, costing you money each day.

@Bill Turner just downloaded that app and it’s amazing, thanks for the tip!

@Michael A. That’s precisely what I’ve done and noticed the 10% rule trend. I’ve mainly been analyzing 2-4 unit properties.

It’s cool to know you also take that approach, would love to exchange notes/tools/spreadsheets.

@Max T. I also find the 1% rule does not scale well with larger purchase prices. For example, a $700k triplex can still be a good cash-flowing deal without collecting $7k/month.

Do you notice the same?

@Max T. I try to shoot for that as well but locally those deals have been virtually non-existent.

@Joe Villeneuve good catch, with a DP of 20% this increases our rent to $833/month and should improve the numbers.

There's always assumptions in REI, it's a matter of reducing and validating them.

@Mike Dymski in that case what rents would you need in order for it to cashflow? And where does it put your cap rate?

@Mike Dymski Sorry I didn't explain my assumptions. For my business model: all utilities are paid by the tenants (the PITI comes out to about $450), 8% vacancy, and self-managed.

In my market where the median home price is $500k this concept will work better for multi-units. $100k SFRs here locally getting $625/month is not likely, I was using it more as an example to show the math.