All Forum Posts by: Dylan Grabowski

@Account Closed thanks for sharing the meet up! I registered for the next meeting to be held April 4th, and will be there!

Hope to meet you there if you're able to make the meeting.

Cheers!

@DG A.,

Seriously, thank you for taking the time to pull this together, ask these questions, and help me figure out which questions I need to be asking! I'd like to preface this with I know there are no dumb questions, but I'm sure a lot of my upcoming questions will be very entry level.

That's a fantastic spreadsheet you shared with me, and I'll be using it as a base model to move forward. And yeah, I agree, using this method does make good deals harder to find. The last thing I want to do is jump into my first REI, and poorly manage the situation or shoot myself in the foot for future opportunities.

Simply looking at the numbers on the spreadsheet, I'd drown if I took on this property. For future instances, would the '50% rule' come into play in the Property Income Cell (B34)? And hopefully with a positive cash flow, not a negative one...

Additionally, I'm going through the approval process this week with a lender. Will the approval process allow me to choose which bank I'd like to take a loan? I will be shopping in Oakland, San Leandro, and Hayward; hopefully there are homes that qualify in San Leandro and Hayward as well. I AM interested and I'll shoot you a PM to get your funder's information.

The time you took to write this post, and share the spreadsheet has helped very much. It will absolutely help me ask the right questions about potential properties. Thank you so much.

@Michael Le, thanks for baring with me, this is one of my first property reviews. Great questions.

I'm not sure why Property is listed twice, and at two different figures. The P&L breakdown seems to have words missing because they couldn't fit on the printout.

Questions I will need to ask the broker: was the building owned it free and clear; is utilities All Bills Paid;  and, insurance premium reasonable for area and property type?

Also, I'm still waiting on approval from my lender, which might have some very important mortgage and interest rate information I'm unable to apply to the formula. 

Thanks for the insight, and questions I need to ask!

@Michael Le thanks for stopping by! The breakdown is as follows (taken from the Property and Financial Information sheet at open house):

- Total deposits: $1,100

- "Property": $8,386

- Maintenance Expenses: $600

- Utilities: $540

- "License": $669

- Annual Insurance: $900

- "Property": $2,900

(The numbers don't add up, there's also another point on the Information Sheet "Total Deposits: $1,100.")

Also, another thing to be noted, the "sewer lateral is to be done in escrow." Forgive my naivety, but what exactly does that mean?

Regarding comparable rates, $2,600 is inline with rents in the area for a 3 bed/1 bathroom.

Thanks!

Looked at a property this weekend in Fruitvale (Oakland area), within walking distance to train, nice quiet neighborhood.

Price: $600k

Unit 1: 3 bed/1 bath renovated and vacant, really nice unit, open and airy, 1,150 sq ft. $2,600/month.

Unit 2: 3 bed 1 bath, current tenant says they'll "leave by May", unit is thus far sight unseen, 750 st ft. $1,400/month

Gross Operating Income: $48,000

Expenses: $13,395

Net Operating Income: $34,605

FHA downpayment would be $21k. I'm a first time homebuyer... Seller willing to accept FHA.

This is one of the first few deals I'm evaluating, what am I missing? Seems to good to me, good cash-on-cash return...

It'd make most sense to rent the renovated unit for $2,600 a month, and live-in/renovate the second unit once the long-term tenant "moves" in May. Of course, tenant may not move. 

So, BP. What am I missing, not thinking about, or what do I not see if this is a good deal?

Thanks!

I appreciate the insight, @Nathan Waters. I used Craigslist to scout a couple of properties over the weekend and met a broker trying to sell a 'motivated' sellers duplex. I'm not sure if it's a good deal for me, but that calculator would sure come in handy right about now!

Thank you much for the suggestion on finding a good Realtor/property manager, @Gary Faucett. It is so very clear to me that a lot more research is necessary to learn what makes the numbers work. Lastly, I envision managing the properties myself as long as I live within a two-hour drive shed of my property; if not, then I'd think about hiring a property manager.

Thanks @Shawn Ackerman, time to drive to success!!

Howdy folks, I want to preface this post with this: I'm brand spankin' new to REI, and, I'm still learning as much as I can and might be asking questions regarded as basic things that can be learned by reading the forums.

That being said, I'm looking to purchase a duplex or triplex in West Oakland or East Oakland. What's the best way to go about looking for these types of properties? Drive down the streets myself? Search Zillow? A realtor? 

While I'm still figuring out how to grade a potential investment property (cash-on-cash return, ROI, Cap Rate, etc.) I'm trying to learn how to go about finding particular properties, then I can do "mock" calculations to begin learning how to find a good deal.

I'd move into one of the units as well.

Also, if you yourself have purchased a duplex or triplex, and lived in one of the units, what was your experience with your tenants like? Do you disclose that you're the landlord, or do you say you're the property manager?

I've got a lot to learn, and will appreciate any and all discussion!

Cheers!

Dylan

P.S. Can anyone point me in the direction of a spreadsheet or two?

P.p.s. I'm currently reading Investing in Duplexes, Triplexes, and Quads by Larry B Loftis.

Thanks for the welcome @Chris Mason!

Appreciate the words of wisdom @Kevin Grinstead, I'll definitely reach out when the time is right!

 Thanks, Jeff! I'm open minded to other markets within a time-shed of a couple hours as well. Looking forward to new opportunity.

Hello to you @Michael Beeman @Ryan Scott Isacksen @James Carlson and @Craig Curelop!!

Thanks for dropping by to say "Hi!" and share some tidbits. 

I look forward to following your experience with your 9 units, @Michael Beeman!

Thanks @Michael Beeman! I'm just beginning to scratch the surface, and can't wait to learn more!

I actually lived in Denver for 5 years and will be visiting at the end of the month @Michael Beeman. I'll lookout for a meetup!

Great advice @Michael Beeman! I've been delving into the BP podcasts from scratch, and just finished episode 9 on hard money lenders. I'm currently reading Investing in Duplexes, Triplexes, and Quads by Larry Loftis. And, will certainly delve into Brandon's 20 top RE books. 

Thanks for dropping a line, all!