All Forum Posts by: Ed Matson

@Chris Martin - Chris, I have been quoted 5/25 money at 5.35%.  I am looking for a longer term primarily.

Thank you @Eric Kang,@Jessica Zolotorofe,and@Chris Martin.

Hi All,

We currently have two rentals in southern CT under temporary financing. They are held in an LLC. We would like to put them under permanent/long term financing. I have a quote from a local bank for a commercial loan and am looking for other options. Does anyone have any experience they can share on Colony American Finance or B2R, or other suggestions? We would prefer to continue to hold these assets in the LLC.

We recently purchased a three family in New Haven which requires a few repairs.  I am looking for a good handyman.  Can any property owners or managers refer some to me ?

I have found that determining ARV for small MF's (2/3 units) in Fairfield and New Haven Counties in CT varies from community to community. For more desirable towns with good school systems, they market values them similarly to SF's. . They might be great primary residences with an income stream to the owner, but I find they generally don't cash flow well. So, as an investor, I generally stay away as they are overpriced. For other communities where rental stock is more abundant, a 3 family can often be found where the numbers make sense. Less so for duplexes. As a buy and hold investor, I want to be reasonably confident that I will get a good return on my investment, so to me that's how I judge ARV. Recently that has meant that gross rents for a building needing little or no work be about 1.2% of the buying price. If the building needs work, I deduct the repair amount from the ARV. This is just a quick and dirty to see if running the property through the BP buy/hold rental property makes sense. For me, its all about cash flow, so that's the only method that has meaning to me.

If the stone is actual facing stone and not a cheap sheet imitation, I would keep it.  I know we just paid some good $ to have real facing stone applied to our poured foundation and it looks great against the vinyl siding.  Really improved the appearance of our home.

I would imagine taxes would be the biggest portion

Hi Molly,  Thanks.  I'll take a look at it and advise.  Please PM me with your email address.

If gross rental income is $2850, and operating expenses are $2742, you will have negative cash flow after mortgage payments. Based on your figures I got a 2.3% CAP rate. If you like, you can send me all your expenses broken out individually and I'll be happy to look at them for you and comment. Have you plugged all your numbers into the BP rental property calculator?

If you posted the expenses and the calculated CAP rate, it would be easier to comment.