All Forum Posts by: Arn Cenedella

Arta:

Whatever you do, be sure your have a good capital reserve AFTER PURCHASE.

I would scale purchase to ensure you have cash in the bank to provide support when needed.

The capital reserve might be 6 to 9 months of principal interest property taxes and insurance.

If you buy a value add and have an estimate of CAP Ex, maybe increase that by 25% to 50%.

Having a large capital reserve will lower returns, but you will sleep better at night knowing that you have cash in reserve when needed.

I will be interested to hear what other BP folks advise.

Good luck!

Arn

Thank you to all those that have replied. I will reach out to your recommendations. Thank you!

Looking at something in Riverside/Avondale area and need property manager who knows that market. Open to bringing in local partner. Thanks. Arn

@Katie Miller

I have a good story about pulling up roots in Silicon Valley and moving to Greenville South Carolina in late 2014.

Happy to share but I want a private discussion first.

Please contact me outside Marketplace.

Thanks

Arn

@Airika Pope

I am actually investing in Greenville now.

Moved here from Silicon Valley SF Peninsula 5 years ago and we love it.

Great place to live and invest.

Feel free to reach out to me and I can help.

Thanks

Arn

@Allan C.

You are so right. 
I am still trying to figure out the tax angles of this transition. 
Of course if I sold some of my stocks right now that would generate a loss to offset the RE gain. 
I am basically retired at this point and thanks to depreciation, paid zero in income taxes last year. 
So my situation is much different than a high W2 income earner. 

Your comment was spot on. 

Thank you

Arn 

@Alissa Duncan

Contact Mark or Chase at T2 Design and Construction.

Located in Greer but will go to Spartanburg.

They have done four projects for me.

I trust them.

@Joseph Cacciapaglia

I am open to buying an apartment building under $2M by myself. I just can’t find any decent properties in that price range. 

If you have anything under $2M in San Antonio that I can buy, let me know. 

Happy to buy a building by myself and hiring a property manager. 

San Antonio is good by me. 

Have any possibilities under $2M you want me to take a look at?

Thanks

Arn

@Mark H Porter

Laura and I moved to Greenville SC about 5 years ago from the San Francisco Peninsula Silicon Valley and LOVE IT HERE. Very happy here and we are not going back to CA. 

GREENVILLE is midway between Atlanta and Charlotte both of which most experts consider great places to invest. 

Let’s keep in touch. I am working on a deal now. 

Thanks

Arn 

@Roni Elias

I totally understand your concern about the market direction moving forward. 

I invested in a newer Class A project run by a top notch operator. Average tenant income is $94,500 and rents are below $1500 a month.  I believe it will be a safe secure long term investment. The investment is NOT dependent on value add and jacking rents. 

I am more optimistic about the economy now than I was 3 weeks ago. 

I believe the US will rally in the next few months - I am not anticipating boom times - but I don’t think there will be devastation. Things may be flat for a year or two and the operator has taken that into account. 

I feel comfortable with my decision. 

Thank you

Arn