All Forum Posts by: Jayson Trierweiler

What does JWB stand for? I've heard of the other two.

I just realized I may have put this in the wrong Forum Category, sorry!

Essentially is as follows:

New Lease Fee (one month’s rent) + Expected Missed Rent + “Refresh” Cash

(Refresh Cash = the amount out of pocket to prepare the property for new tenants, after tenant deposit is spent)

It looks like this:

(A/B)+(A*C / B)+(D/B)

Where:

A = New lease fee (1 month's rent) ($1,000)

B = # of Months in lease (24)

C = Expected # of months vacant in-between tenants (1.5)

D = “Refresh” Cash ($500)

In this example:

($1,000/24) + ($1,000 * 1.5 / 24) + ($500/24)

Which is:

41.67 + 62.5 + 21 = $125    which is 13% of monthly rent in this scenario

The equation allows me to make a judgement call in many different scenarios. For some tenants maybe my refresh cash will be $300 and for some it may be $1000. In some markets maybe my expected months of vacancy would be 1 and in some cases 2. Etc. etc. etc.

Your thoughts? Too conservative? Too liberal? Pretty good?

When I use this methodology, on top of my capex/RM analysis, I can't see how 99.9% of turn-key opportunities could possibly make sense.

I am very close to purchasing an out of state rental property. it will be my first real estate investment. I'm looking for a lawyer to look at my contracts. Any referrals?

thanks!

the provider is great and very helpful. fundamentally though, they are selling me something and I am buying something, so I am looking for a local third party, if available, to help out a new guy (look at paperwork, give advice, etc.)

Thanks @Vinod Sirimalle. I am looking for someone local to possibly even help me look at paperwork and such.

I am buying my first property, it's "turn key" and it is out of state. I have my lender ready to go. I'm a newb and I'm looking for someone local who would be available to guide me through my first purchase. Anyone available?

It is in Birmingham, AL

I am buying my first property, it's "turn key" and it is out of state. I have my lender ready to go. I'm a newb and I'm looking for someone local who would be available to guide me through my first purchase. Anyone available?

thanks!