All Forum Posts by: Derrick U.

Almost a New owner of an apartment complex.

Which insurance companies are the best?

How do I know if I'm getting a good price? Someone once told me never pay more than $125/door. I forgot to ask is that per month or per year.

How do I find a good one?

What do you think of this video?

https://youtu.be/SyeZa1DTidU

Cozy is free

Appfolio isn't

How do I decide? What's been your experience?

Caps in Phoenix are 5-6%. How on earth are you suppose to make money?!

@Jack Orthman

All that information will be obtained once it's under contract.

I don't trust what the seller quotes on the MLS unless I see receipts.

I'm asking before I waste my realtors time, the sellers time and my time by signing a contract before I have an idea if it's a good investment at first glance using averages and assumptions customary in this market. The location is Avondale, AZ so we don't have the same rental laws as California.

Debt can be estimated using an online calculator.

I'd assume operating expenses of 35%-50% and 5% vacancy rate.

I don't factor in appreciation or raising rents.

Rents are $900/mo for six units and $700/mo for two units.

$775k asking price

8 units (6, 2x1 2, 1x1).

Fringe neighborhood.

Class C

Built in 1980

Laundry on site. Leased W's/D's

Total monthly rent $6800.

Expenses?

Desert landscape...no landscape costs.

No or go?

Just curious what everyone would calculate the Coc to be. Assume 5% 30 years. 25% down.

@Brian Burke

Wow. You guys are all on point!

Thank you.

@Eben Rohling

Wow. Didn't even consider that the mortgage payments are contributing to the equity which essentially should be factored into the Coc return. And, as years pass, the ratio of interest/principal payments shrink such that a larger and larger portion of the mortgage payment contributes to the equity further increasing the return. You said it more simply but yes I see what you are saying.

Big thanks.

@Ryan Elsey

Awesome

Thank you

@Patrick Menefee

Ok. That was awesome. Thank you.

@Brian Burke

Until all these class A rentals come online and put downward pressure on class b and c rentals.

Also the jobs may disappear. Are these solid AAA bonded companies coming to Phoenix? I'm sure some are or maybe most but I'm also sure that some aren't. For example, Zenefits went under. Anyway, I see your point. I appreciate your perspective. I didn't think of it that way.

My goal is financial freedom. I work everyday but I'm at the mercy of others with more money than me and until I can say "bye bye" to my job I have to walk around with my tail between my legs until I'm free. That freedom is just several thousand a month. I hot that and I'm good. I would love to be where Grant Cardone is or some of you guys on here are but that's not my goal. Just financial freedom with a middle class income. Certainly I'll go higher if I'm energetic enough but I feel Father Time breathing on my neck every now and then and I'm a little tired of waking up to an alarm and dancing to the beat of another drum.

Just venting. Thanks again.