All Forum Posts by: Eric Schultz

The 50% rule on maintenance costs is a good place to start until you move on to the next level of due diligence. Contact a few commercial lenders that serve the area to get an idea on loan costs. Will you be purchasing under an LLC? This may change some of the financing costs. Monthly PM fees can range from 6% - 10% on a multi-family of this size. Half month to full month’s rent for a new tenant leasing fee and typically half the leasing fee for a renewal fee. I’m not familiar with the NY market. You may want to contact some local PM firms to find out who serves multi-family properties and what their standard fees are.

It’s hard to say without knowing more about the property’s condition. Do you have boots on the ground in NY that can scout the property and location? If there is significant deferred maintenance, you may have steeper costs over the first few years. Don’t forget landscaping and snow removal. In regards to property management, make sure to factor in leasing fees (new leases and renewals) in addition to the monthly fee. The lending may look a bit different with a commercial loan. You might only find 20-year or 25-year AM which will change your monthly payments quite a bit.

Serve the 30-day Notice. You may want to check out Landlordology. It provides direct links to the landlord-tenant laws for every state. Read thru them for some background and general understanding and then consult an attorney or professional property management firm.

An active real estate investor that knows the ins and outs can easily make 25%+ ROI. You will find it difficult to find a truly passive real estate investment making more than 10-12% ROI these days. There are passive investments that do better, but they usually require you to be accredited. Here’s one way to score results. The higher the ROI usually the more active effort required. Bronze = 10% ROI Silver = 15% ROI Gold = 20%+ ROI

For the individual doors you may want to look into the Kwikset Smartkey system. You (or PM) can change the key yourself in under 30 seconds.

Always contribute up to the employer match. If there is no employer match than you need to do a simple calculation on your W2 income tax basis to understand the delta of funds that you must now take action with if you will no longer be contributing to the 401k. Savings accounts and CDs are not a good place to pile up your “opportunity fund”. There are much better options available to the general public. Take a look at something like AHP Servicing (Google it) for a 10% preferred return while you figure out bigger investment plans for the cash allocation. Another solid long term strategy is to use “infinite banking” thru a high cash value life insurance policy designed with lower costs for investing purposes.

$25 / pet / month with an increased security deposit in Indianapolis.

Consistent effort each day in the direction of your goals. Avoid shiny object syndrome. It starts with mindset and your strong “why”, but nothing comes to fruition without taking action.

@Shanese Francis It was purchased at auction. We made the repairs to keep it off the buyer’s home inspection report.

Bob Woelfel We ended up going with the soda blast and disinfectant on the floor joists with the mold. The leaking pipes were the culprit. Not cheap, as it was more than a band aid approach. I’ve heard of some flippers just doing the disinfectant or masking it and the problem never fully goes away.