All Forum Posts by: Chris Vail

@Ginny Pruitt

 Welcome to the site, keep your eyes open for a local BP meetup in the Sacramento area. @Al Williamson usually sends out a notice when one is coming up.

FYI to tag someone that is a contact or has talked in your thread type"@" followed by their name and after a few letters they will show up at the bottom of your type box and you can click on their name.  This allows people to know when you are responding to their comment. for Instance I tagged you by typing "@Ginny P".

@Stephanie Wells

 If you take the 10k will you be able to go and find another project to put your capital to work?  If deals are not easy to come by do you run the risk of not finding a project right away to put your capital to work making more money?  If deals are relatively easy to come by and you can put your money to work quickly on another project that you could make the same amount of money on or close to this deal then I would say take the 10k and find another project.

But if you can't find a deal or don't think it will be at the same level as this project then I would think twice about taking the quick money since your capital will sit and won't be working for you while looking for that next deal.

Not an expert but this is how I would look at it @Beau Walsh.

At what price will I get all of my capital back (Break even at this point in time)?

How much does this price move each month (when you add in holding costs)?

When the first assessment charge happens obviously your price goes up by 30,000 to get your capital back, but can you sell the place for 30,000 more to recoup all of that cost right away?

If you list/sell at the lower price your realtor wants to list at, how much do you lose? 

And if you don't sell at the lower price how much will you lose going forward until you get the price you want?

Real estate is like just about everything else in a free market the market will pay what it wants to pay not necessarily what you want it to pay, so keep that in mind you may never get the price you want.

@Account Closed

Also depends on if you are financing the property or if you own it?  

Some lenders will require you to have flood insurance depending on where the unit is located in Sacramento based on the rating from FEMA FEMA for Sacramento.

@Taylor Comer that's why I gave them three options on how to pay, it is being flexible for what will work for them.  The tenants ultimately chose the chase quick pay as that was what worked best for them.  However all three options worked for me. So it is a win regardless of what the tenants chose but it still gives the tenants the option to pick what will work best in their eyes.

@Taylor ComerCongrats on becoming a landlord (I believe this is new) anyway I just filled my  first rental and gave the tenant 3 options to choose from.

1. Direct deposit from their account to mine (ACH)

2. Chase quick pay or equivalent based on their bank (they had Chase)

3. Deposit only card so that they could go to any Wells fargo location or ATM to physically deposit the money.

Like @Kyle J.says above it will largely be driven by what will work for your tenant and for you.

Thanks @David HutsonI will give them a call and see what their availability is.  Hope all is well.

I am looking for recommendations for an electrician for adding an outside outlet, outside light, and a switch inside to run the outside light.  If anyone has had good experiences with a licensed electrician in the Sac area please let me know.

Thank you in advance,

Chris

@Micki M.

 Nice job and congratulations on the pending contract.  I am sure the neighbors are thrilled with the increase in value to their neighborhood.

This is a very nice deal @Brennen Cook

How much is the rehab going to cost you? 

If 3 of the 4 units are already rented how do you plan to go about the rehab?  

Only getting ~570 in rent per unit that seems really low for the Sacramento area for a 2/1, are the units in that bad of shape?  

I would expect it to be in the 800 range, what kind of tenants are in there currently?  

What kind of lease is in place?  

When was the last time rent was raised on the units?

I am assuming from your numbers that you are not paying any of the utilities. Since you lumped everything together it is hard to see if you are accounting for everything in the appropriate way. For instance what amount are you setting aside for CapEx, Maintenance, Taxes, Insurance, and Property Management (Your time if you are self managing).

These would be some of my questions from a devils advocate point of view.