All Forum Posts by: Account Closed

Hello Greg, I am currently Looking at an multifamily Duplex in the federal hill area. It is a great market to be in. It is alittle pricey, but that is to be expected coming from that area. Which is a great area to be in. Plus The Market is strong in the area. Your spread sheet looks pretty good. Just a few things i saw that i would do/change if i was in your shoes.

1. Property Management: The 10% Property Management Fee could cut back your expenses $3,240 a year which would help with your NOI/Cash-Flow. I say this because being as though its a 3bdr 3.5BA you could manage it yourself. Saving you that $3,240 a year on Management Fees.

2.NOI-Cash Flow: I Noticed Your NOI is $57.47 and Cash Flow $4.79. That is something i Would Highly Be alarmed by. But two Things you could do to change that, One i Mentioned with you being the Manager of the property. Which will bring your cash flow from $4.79 to $274.49.Just something to consider. Also I Would bring my Cap Ex to 5% instead of 7.5%. Especially if the property was inspected by a good inspector and if the property HVAC, Roofing structure, Foundation, Piping System and Electrical are in pretty Good shape. Again you may wanna spend more money getting the property looked at carefully by a good Plumber, Electrician and HVAC Tech outside of your normal inpsection for a better peace of mind and also for a more in depth analysis. Spend a few more bucks in the beginning to save you a potential headache/Big cash kick out down the line. Just by Lowering you Cap Ex due to preventive Maintenance that would add $67.5 to your cashflow bringing it to $341.99. Just over $100 a door.

3. I Would Offer a Tab bit Lower on the asking Price to try and steal the deal, and also i noticed you are putting down 5% on an conventional loan? That's a 50/50 win. Lower down payment is less money out of your pocket and gives you more leverage. But with a higher Down payment it can raise your Cash Flow. If you plan on staying for the long run maybe you can re negotiate the deal. But Honestly Your Price is not bad at all.

I believe you will do great. Federal Hill is a Great Market. Especially if you get the right tenants in your place, along with a great deal. You will be well on your way. Check Out Brandon's Book "The Book on Rental Property Investing" And "The Book on Managing Rental Properties" Both are Great Reads!  Here are the Links for both.

https://www.amazon.com/Book-Rental-Property-Investing-Intelligent/dp/099071179X/ref=sr_1_2?ie=UTF8&qid=1476847889&sr=8-2&keywords=Biggerpockets

https://www.amazon.com/gp/product/0990711757/ref=pd_bxgy_14_img_2?ie=UTF8&psc=1&refRID=Y7A547GVAY6YGTZP1E6C

Hello Bigger pockets. I Recently have decided to go into the multifamily/commercial real estate side. After doing some homework on the topic. I have realized that multifamily/apartment investing is much more lucrative then Single family. Question: How do I find deals for multifamily properties? Other then Loopnet how can I search the web to find deals? I  would like to analyze at least two days a day but I only see the properties on loopnet. I recently contacted a few brokers in my submarket, but only one has contacted me back with 2 properties that were off the market. How would I find a real estate agent who deals with investors? Also I would love to hear how you guys/ladies got into your first Commercial/multifamily property. Thanks!

I highly Recommend Getting a Trane Unit. I have worked on them a ton. But only for minor things over a long period of time. Trane units last. When it comes to HVAC you do not want to purchase cheap. It will cost you more in the long run. 

@Tyler Arnold Books I recommend. "The millionaire real estate investor" by Gary Keller. Rich dad poor dad by Robert kiyosaki. "The ABc's of real estate investing" By Ken McElroy. 

The Bigger pockets Podcast is Awesome! I really recommend that. Bigger pockets has a Ton of Education that's up for grabs. I Wish Nothing but success for you! 

"The Millionaire Real Estate Investor" By Gary Keller

"The ABc's of Real Estate Investing" By Ken McElroy 

I Just wanted to get some stories from people on how you acquired your first property. I read a story on how an individual actually received his first property for free. But the property was in a tough side of town. I am aiming to purchase my first rental property a duplex or triplex. What would be the best way on going about it? 

@Cody Campbell I am looking to gain more knowledge from Robert kiyosaki. His legendary book "rich dad poor dad" is great. But I am looking to read more of his materials and get the book he has recommended by Ken McElroy "The ABc's of Real estate investing"  

I Agree with the Dave Ramsey Concept on getting out of consumer debt which doesn't pay you money, but always cost you money. But if I am aiming to build a serious empire in the real estate industry. I believe in my opinion, Saving up to buy $300,000-$1,000,000 properties won't cut it. Leverage would be needed depending on your income. In the case of income most people are not walking around with that kind of liquid cash to drop on investments. In which leverage would come into play. Grant Cardone focuses on Getting your income up and not being satisfied with the middle class. I totally agree with that. In my eyes both Dave Ramsey and Grant Cardone are helpful in big ways. Even though their messages are totally different. 

@Larry Turowski Thanks for the Feed-back. Great way of going about it. I never thought of the leveraged approach until I ran into Cardone. I was a 100% Dave Ramsey Follower with his steps. I still am a fan of Dave's. But I just have been listening more to the Robert kiyosaki' of the world lately. 

@David Faulkner Wise words from Warren Buffet. Actually I am looking to read the "intelligent investor" a book recommended by him.