All Forum Posts by: Bradley Benski

@Mark Updegraff 

One of my Tenants pays through Chase Bank Quick Pay.  She doesn't have to have my account or anything.  I believe she set it up on her side with just my email address.

At the first of the month she makes the payment to me.  I get an email that a payment is waiting.  I hit the link in the email and it takes me to the site were I approve the payment and the money is sent to my Bank of America account.

All that was required of me was to setup my transfer account number (my BofA ACH and account#) and verify a small transaction amount.  The funds show up in my account in just 3 business days and my tenant never needed to know my bank information.

This works out well for me as I am actually working out of the country and no in person paper transactions are required. 

@Josh Autery 

Greetings from a Nederland Bulldog.  Welcome to the forums.  I too am looking to start a new round of investing towards the new year.  In the mean time take advantage of the information on the Site.  @Brandon Turner has given a good set of references as well as the not mentioned Ultimate Beginners Guide.

I currently work in India, but plan on visiting sometime late in August or September.  If you'd like we can arrange to meet and talk shop.  Most of my investments are in the DFW area, but given I work out of the country I'd be looking for some partnering opportunities too.  And since I know your area....

@Jordan Vires 

If I understand what you propose:

16 units

Price 50K per = $800,000

Current Rent Potential = 16 X 550 = $8,800 per month or $105, 600 per year

Just a quick 50% rule would have you at $51,120 NOI per year

6.35% Cap Rate (NOI/Purchase price)

Down Payment = $200,000

Loan = $600K

Loan payment based on 6% for 30 year amoritization = $3597/MO or $43164/YR

Yearly CF = $7956

Cash on Cash return = 3.98% (Yearly CF/Down Payment)

Just the back of the envelope analysis seems to indicate that the price of the property isn't supported by the rental income that is generated from the property.  Greater than 5 units is considered commercial property.  All commercial property is valued based on its CURRENT Net Operating Income and the going Cap Rate of the particular market the property is located in.

@Westin Hudnall 

The new information that you provided changes my view.  At the financing that you have, I wouldn't purchase this project because of its impact to cash flow.

Given the new information that you are at 4 conventional loans already it appears you should start (if you already haven't) to look for financing from portfolio lenders (local banks, credit unions) or private lenders.  This type of work will allow you to expand to 10 properties or more.

@Westin Hudnall 

It is very doable, the only thing I see is with the 15 year mortgage you are paying approx $218 more per month than a 30 year mortgage.  That could make all the difference between a property that cashflows or doesn't at this price and rent level.

What are your goals?  Hold onto the property forever, over 15 years, maybe 5 years??? Also, after the bank finance what is the plan?  Reinvest the money into another house or pay off investers/debt used to make the original purchase.

For me personally, doing a 5 minute peek the deal has potential but would choose to finance purchase up front 20% down on the 30 year mortgage for the extra $2616 per year in cash to my pocket.  I'd want to know about the maint status of the house, any large captial expense items that are defered (A/C, Heat, Roof, Paint, etc.) that will come up needing replacement sooner rather than later.  What about taxes and insurance. These would need to be known and plugged into my spreadsheet (J Scotts downloaded from this site) before pulling the trigger.

@DP Patel Excellent news!  Congratulations, strong finish getting the place rented out quickly too.

@Shane W. I've had several people make that comment to me.  My usual follow-up is that I've had multiple rental properties in multiple states for multiple years and the "Condition" that they describe hasn't been my experience.

The world is as you see it.  Some choose to see the world as a ****** place. I however,  see it as a world of opportunity.  Just keep your view and move on with it.

Ditto what the others said.  If the deal is good you should be able to find other less costly financing.  

Ditto the comment on the $15 to find a tenant.  I've had PMs want to charge 50% to 100% of one months rent.  What area of Texas is the house?

I've got interest in 11 houses and live/work in India.  The main thing I'd look into with the PM is the cost of maintenance.  Are they taking a cut of the expenses?  What type of rate do they get.  I had on PM that would have these contractors charge outragous amounts, seemed every problem was at least $500 to fix.  I've found that PMs that are investors themselves tend to think more about the bottom line and have more reasonable maintenance costs.

@Joshua Dorkin I do not have the player loaded to listen when I surf Bigger Pockets.  Instead I open a new tab and listen from the second tab and work in the primary tab.