All Forum Posts by: Todd Keith

@Mushfiq S. - Will do. Thanks

Hi @Collin Schwartz. Good questions. Yeah. This one concerns me a little. There's not a lot of room to increase the rent right now based on comparable rents in the area. Don't think this one would be a value-add opportunity. Just a buy-and-hold cash flow play. (Which is why that $/mo per unit amount is so important) 

Hi @Vince DeCrow. I wouldn't say I'm an expert on the market, but learning more every day. All good points. I'll add those to my due diligence list. Thank you! 

Hi @Account Closed - I'm suspicious about the low OpEx too, but at the same time there's that little voice in my head that keeps saying "What if...." 

Just curious: If you saw OpEx of 26% would you just walk away?  

• Taxes: 10K
• Insurance: 2k
• Water & Sewer: 10K
• Electric: 6K

As for property management, it's self-managed now, but I added on 10% of GYI, (16K) since I plan to have a property management co. run with it. 
OpEx Grand Total: $44,380 (26.14% of GSI)

What I'm going to offer: I have a few options I plan to present him with depending on the interest rate he's willing to accept. 

Looking for a minimum CoC Return of 12%

Hi @Rich Nordstrom. No idea about the plumbing. We haven't performed an inspection yet. In the initial phases of the deal right now. I have heard the same thing about SFR plumbing from the 1970's and earlier though. Some of the pipes had almost completely deteriorated in a fellow investors rehab property. That added on some unexpected expense. I'll keep an eye out for it on this one. Thanks

@Jill F. That's what I was thinking too. It is not in Highland Square. Built in 1981. Owner is paying gas, exterior lights, and water for all tenants. This another reason that 26% OpEx seems low to me. 

@Andrew Johnson - It is self-managed. He tells me he does "everything", which could explain some of the lessened OpEx. 

Very good cap-ex advice. It is helpful. I appreciate all the tips/advice I can get.Thank you.