All Forum Posts by: Will G.

Condition?? Perfect? No deferred maintenance?, 1 percent maintainance seems way low, better figure 5%. You have to account for capex, unless it is a short term flip, you consume, roofs,  hvac's, water heaters, flooring, counters, etc, etc.

Get the actual gross rents from the property owner/manager, but based on $63k net rents, try to get this for$790k or 8% cap rate

Would you mind providing a little background info on the hud program?

Hunter, you have a GIANT advantage, in that you are young, know what you want to do, and are not afraid to get your hands dirty!

Of course you will make mistakes and encounter ups and downs, but if you are diligent and work through the rough patches you will be successful!

Study the real estate cycle and understand how that works, but don't let it stop you from moving ahead.

And if you need money and contacts to get started, consider becoming a realtor, (especially commercial if possible). It may sound daunting and typically requires a certain personality type, but that won't be your endgame it will just help you achieve your goals, and will teach you loads about the industry and be a great inside source for "deals"

Best of luck to you!

sorry but NO!

You wont be doing any value investing in south fl. Why would there be bargains, if everything sells for full price in a very short time.

Now if your financier insists on buying property, fully aware we are late in the cycle, and wants to gamble on appreciation in a highly cyclical sector then fine.

A multifamily with no mortgage imho would be a much better proposition for you both as it will throw off cash and survive a change in conditions easily (without a mortgage)

It wont be a bargain, but relatively safe

I typically don't find giant piles of cash lying around on the sidewalk... meaning if you are going to flip homes, you would be very lucky to find "equity" or enough meat on the bones on a deal to hire a g.c., much less a designer or architect!

Being 20 are you looking for a hobby or a career? If the latter, your first flip should be a great learning experience, by doing everything yourself! Learn all the trades involved!  Figure out the design youself! There are lots of resources (sketchup and the like) you can use for space planning

It will make you a vastly better investor in the long haul.

If you need experience to get started go work with habitat for humanity, and learn how to build a house, which will teach you how to rehab them.

Obviously hire out electrical work or any plumbing that involves, major reworks, but otherwise you will benefit from knowing how to do all this stuff

well it doesnot cash flow with #'s provided and no capex. Even with new roof etc, don't forget you are consuming; hvac systems, water heaters, flooring, roofs, cabinets, counters, appliances, etc etc. If you plan long term hold you will have to deal with all the components that make up a home, eventually. 

1 vote for keep the condo! Is the rent currently as high as it can be? What did you pay for it 20 years ago? You are correct about the mf market, tough right now

stop looking for on mls deals! Waste of time at this stage, look for off market, buy owner, stuff on your own

Quick and dirty... take gross rents per month, multiply times 12 months of a year, to get yearly gross income.

Then subtract 50% for expenses, or if you want to work and manage the property yourself, including light maintainance(for free), subtract 40%. Take your net income and divide by your cap rate. I can only guess what your cap rate will be but in hollywood, maybe 6 to 7 on a "c" class property.

So for instance $100k gross yearly income, minus 50% = $50k, divided by .06= $833k as a purchase price.

Now call the realtor and tell them they are nuts for listing the property at $1.1 m and you will offer $833k.

Sit back and watch someone pay wayyyy to much for it and be ready when it goes distress sale!

But seriously, if a prospect does not meet the above metric, make offer or move on. If it does, put under contract and refine numbers in due diligence

invest with a bank and get 5%??? Why would you even bother buying a mf property at 6% cap rate?

I am pretty sure op means .5%

How about some blue chip dividend payers, via a fund, or muni bond fund?