All Forum Posts by: Will Barnard

I paid 1/3 upfront for my last roof replacement. It is standard. As a roofer, I would want the funds before starting as well (looking from the contractor's standpoint).

Perhaps you can agree to have a third party (such as escrow), take the full payment, and the contract would stipulate when and how much would be paid out to the contractor. This way, you are protected, and the roofer is comfortable knowing the entire amount is sitting in an account for him. Just a thought.

They have been for many years in the auto industry!

Tim,
Send me that PM and I will call you. The freeway is still closed on my side as the fire has gotten much closer to us. Hopefully tomorrow will bring a better result.

Will

Exit strategies are important, but so is the entrance strategy and proper use of leverage. While paying all cash eliminates a mortgage and increases your cash flow, it also reduces your COC dramatically, and reduces the amount of property you can control. The more property you have, the bigger the payoff when things recover.

I have always prefered multifamily over sfr as the numbers seem to be better, but I do agree that the SFR can be sold quicker and easier as you can sell to both investors and end users.

Last years water expense is over 23% of the gross rents. That is obsurd. It is more costly than the taxes, which is usually the highest expense you have. There must be something wrong with that figure.

Aside from that, the numbers are excellent and you have found yourself a smoking deal, assuming you can get renters for these units at $500 monthly.

The only main item you did not mention in the expenses is management. Will you be doing it yourself?
Your current total expenses listed are 60% which is very high. But even if it is the case, you still have some nice returns. COC=46% (excellent).

OK, now the fire is in the mountains above Santa Clarita. This sucks. Just when we thought we escaped the danger this year, and it caused me to miss the in & out burger fest with my fellow investors.

I am looking into this as well, but I would ask you, why is it you think you can not use rental income? Banks due reduce the gross income by 25%, but the balance 75% is available to report, with my understanding.

Unfortunately, there was a member who misused and mistreated the forum rules in that thread, so it was shut down by the administartor and all the good information and posts by others is now unavailable.

I heard that as well that "riding" credit lines is just about gone. The credit companies got wise to that.

From the philosophy of the cup is half full rather than half empty!
Positive is good Harrison.