All Forum Posts by: Ed Matson

Frank Gallinelli's What Every Real Estate Investor Needs to Know About Cash Flow...and 36 other Key Financial Measures

Welcome Steve and best of luck.  The PDX market is very hot right now, so prices are high and returns are relatively low.  It may be a challenge to find a good performing property in the near term.  You might have to expand your horizon to secondary markets in the Pacific NW.

Tim W. makes good sense. Determine what your competitive advantage will be.  Also, what is the vacancy rate in town ? Have rents been climbing sharply due to lack of supply?  Or, is demand constant and the 148 new units will drive up vacancies ?

Very good comparison of the two options.

Hi Jonathan,

I am planning to be there.  Thanks.

I could not agree more with Jonathan Markovsky.  Our current B+ apartment complex is performing substantially better than the previous C- property even though the C- Pro Forma would look much stronger.  Its the total financial picture that counts, not just the ratio of Pro Forma rental income to purchase price. There are reasons those properties are inexpensive.

If you don't want to set up the LLC by yourself, your CPA can probably do it quickly and at substantially lower cost than the attorney. Mine did it and the state registration, Tax ID filing all turnkey for me.

I look at rental property as an investment, and my primary residence as a housing cost.  If you want to grow your money to prepare for retirement, remodeling your kitchen will have very little benefit compared to the rental property. 

In addition to last 3 years P&L, explicitly ask for CapEx actuals fro the same period. Some owners have "interesting" cost categorization practices to pump up the Cap Rate/NOI.

Hi Jonathan,  See you on Wednesday.  Thanks for doing this.