Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
Followed Discussions Followed Categories Followed People Followed Locations
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Chris Babcock

Chris Babcock has started 2 posts and replied 61 times.

@Account Closed

Go to college, knowledge equity (equity in yourself) is something that can never be taken away from you and in my experience is the most valuable type of equity you can have.

@Account Closed

I would say no, I think it's actually a worse image to use your parent as a figure head. You're legal voting age, own it! You might have some people shy away but if you present yourself as mature and organized I don't think you'll have an issue. Or...hire a property manager.

Do some time value calculations.

How much is your time worth per hour? -> x

How many hours a month does she take of your time? -> a

How many hours a month do you think a different tenant would require of you/time spent filling the vacancy (annualized)? (guesstimate) -> b *Don't underestimate this! especially projecting wear and tear*

(x*a) - (x*b) = c =>$ you're willing to "spend" (reduce rent) per month to keep the tenant.

If the above number is negative then stop here and end her lease.

Now for the advanced math:

How much more per month could you get for rent for the unit in your market? -> y

c-y = potential extra income for taking the risk of placing a new tenant.

Personally, I think a great tenant is worth their weight in gold, even if it's $600 a year of my margin. But that's just me.

Post: Glens Falls, NY Area Event

Chris BabcockPosted
  • Posts 63
  • Votes 52

Was great to chat with everyone I talked to last time. Looking forward to this event!

I keep warning people about assuming that the opposite of an up market is a crash. A downside market can look like minimal down or even stagnation. I personally see no reasons to assume that the RE market will be crashing anytime soon.

As the previous posters have said, just keep chugging along with a nice cash cushion.

@Nancy Frazier

Have you run the numbers at $2M? Does that number make sense if you're considering unconventional financing? 

A quick sniff test at $500/room for a multi-bedroom apartment, $19k/month, (which is an odd way to consider rental income IMO) doesn't pass 1% if you were to get it at $2M with conventional financing much less hard money rates. Up in my neck of the woods I see bad deals at a little over 1% so I don't know if this makes sense based on the information you provided.

Also, what are taxes like on it? If it's only a decade old and is a 15 plex I imagine the taxes are a gut punch.

Originally posted by @Brian Stecklein:

Hello I came to see about how to get investors into opportunity zones.  With another project I am working on I have developed a very good relationship with the city to get land from them for basically free.  The people I am working with do not want to get involved in the area that is in the opportunity zones.  I also have a builder.  There are about 140 lots in a relatively small area, with about 50 of those in the zone.  I am wondering how you would go about getting the $ without them cutting you out of the picture, it is city land bank anyone can get the land though a application.   

 I would recommend starting a new thread as not to hijack this one because it sounds more like you are wondering how to stay involved or be paid for your knowledge of 'free' lots, not actually anything to do with OZs.

@Jason Thomas

You (and your funds) also need to be a LLC or Partnership to qualify.

@Gina Stern

I don't think there's a universal dollar amount because everyone is different. If you are happy spending $100 a week on the necessities, that price point is going to be a lot less than if you require $500 a week for the same level of happiness.

I think what you really need to understand to answer the question for yourself is:

A. how much do you spend on average to maintain your current lifestyle?

B. Does your current lifestyle make you happy?

C. If yes, how much can you cut from your current lifestyle and still be happy?

D. How much is left now (+ or -) from your current spending habits and how much does that project to an annual income?

Good book I recommend is "Your money or your life" one of the best personal finance books I've ever read. It will help you understand your personal income needs to a T.

Thanks for setting this up. Always hard to find time to work these into the schedule. Looking forward to meeting everyone.

1 2 3 4 5 6