All Forum Posts by: Bjorik Mutize

@Jon Crosby May I ask what mobile app this is?

@Sarah McCrystal-Harris gather some nearby comps and get their rent estimates to get a ballpark.

If you have a small PM they usually have a rental analysis they give for free as well.

Rent-O-Meter is a good tool.

Who are you working with on your team? A lot of these things when i first began i bounced ideas off of my realtor, inspector, found a contractor and paid just for walking and advice etc. Gather resources to give you advice on above.

On here, you could probably do fairly good due diligence to find average age, cost, eyeing condition, remediation or control of everything you mentioned, but one thing i want to stress is don't add time by trying to learn all detail.

The beautiful thing about fear is how far it expands what if thinking and deductive reasoning.

The only down side about fear is when it gets paralyzing, especially in terms of any move in real estate or business.

@Bryan McDonald yea 70 days. Long and obviously you aren’t a lazy seller that lets the property just sit. Potential buyers, especially institutional buyers will look and think the worst of problems.

Whether it be your realtor or not, you need to re-evaluate your strategy with him or her because something is not working. Then request at bare minimum weekly follow up on what’s going on.

Or change listing realtors.

@Jeremy Segermeister

Simplified cash flow

Income

-Expenses

-Debt service

=Cash flow

All the immediate inputs and outputs. Yes tax savings and depreciation is nice but I don’t see that on a month to month basis. I look at it as appreciation, a nice add on to look at end of year.

An organized seller would have those in the Offer Memo, but yes i would get those ASAP so you know how to informally underwrite. 

You need those to base your contract offer on.

@Mario Russo metro MLS's listings are running extremely tight margins due to the price going in and the rent generated. The properties are being positioned into beautiful assets but the values they end up listed at might not get you your return goals. Lots of competition and the heat can be felt.

I agree with the other posters just as far as looking at near and adjacent cities that you can get decent returns at a purchase price within your intended vision. You want to do this right and now jump in just to jump in. I’m seeing duplex’s in the metro listed for $700k, being bought in days just because it shines, with income not even nearly matching.

Work with a good realtor, network at events and find a good team, differentiate your market study, and find other innovative ways to source deals.

PM me if you want to bounce around ideas.

Hey awesome getting to your first duplex purchase. Just some of my takeways

-Your not spending too much for repairs, is the property in relatively good shape? 

-I'd play around with pushing up cap ex

-Agree on the above for the new taxes

-Interest is high, is that what you were quoted?

-Even if you plan to self manage now, are you planning to somewhere down the line to hire PM?

-You where fair with your expenses, even at that you are netting negative. Could this place generate more income? 

@Brad Hasseler just pure communication between landlord, PM, and tenant.

As mentioned above, it’s important for business alignments to be the same with landlord and PM, but even equally important is the customer service with the tenant.

I think it’s important to set those expectations from the start and while interviewing property managers. Small units or large.