All Forum Posts by: Andrew L.

Fire your realtor for talking back to you. That's why they do what they do and you do what you do. 

Spot on here but I would add a timeframe to that determination. How long will it take for me to receive an X% return on my capital expenditure? If it takes years and years it might not be such a great idea. Also consider you're liquidity position and how hot the market is for deals. You might find a property that yields 25% right NOW. Which, ultimately, would be a better deal for you. Food for thought. 

It's all relative. 

So sellers in your area get back to you with financials and request due diligence items in a day or so?

On smaller multi-family properties, how long do you guys take to perform your due diligence? I have a 10-day option period in my contract on this Tri-Plex I offered on. What say ye?

I've asked for it from the owners. We shall see what they say.

How much would it run to install separate meters on water, gas, and electricity on a 3-unit property?

I'm looking at this deal where the gas, electricity, and water is paid by the landlord. The rents are above market because of this. I was wondering when you are faced with this situation on a smaller multi-family property (3-unit) what do you use for the expense ratio? I know everyone here assumes automatically 50% of gross income, but that assumes that the renters pay for utilities. Parameters are below. I ran a scenario using a 60% expense factor and it appears to remain a darn good deal. Let me know what you guys think.

Purchase Price: $99,900

Unit 1 Rent: 950 (3/3)

Unit 2 Rent: 800 (2/1)

Unit 3 Rent: 700 (1/1)

Financing Parameters: 20% down @6% 20 year ammo

My numbers indicate using a 60% expense ratio, that this property's NOI will yield a COC of 24.5% which is pretty stout. The property is in a C+ class condition. The seller does not have a P&L on this property and in fact, I have found that most owners of these smaller multi-family properties do not track income and expenses despite having to report this to Uncle Sam. (An anomaly I still haven't figured out..)

I waited too long and it sold the next day..

This may sound like a dumb question but, I just started a multi-family company in Texas in October 2013. I haven't purchased anything, therefore I have no sales and I got hit with this bill of $1,150. Has anyone gotten one of these? It says because I failed to file a return for this period that I owe this.

Update: I just spoke to the Comptroller lady and she indicated that I am supposed to file a return quarterly. She said I owe $52 for filing a zero sales return late. Is this stuff a scam? I need help guys. Obviously Legal Zoom ain't worth a poo..