All Forum Posts by: Tyler Weaver

The 25% for capex etc may be conservative for the short term,  but 5% capex is only $360 a year. 

If the roof on this thing lasts 30 years and is $6000 that is $200 a year

If the HVAC is 7000 and lasts 15 years that is $466 a year

In the $6-700 a month range the expenses are hard to keep under control.  You have the same baseline costs to keep the sfr functioning as a $9-1100/mo house, or even a $2200/mo house.

Not really enough data provided.. It could be a deal..

There is a strategy some people call "wholetailing" which is basically wholesale to retail buyers. In this process they typically do not do a double close, but buy the property, trash it out or do minimal work to get it listing ready, then list it with plenty of meat on the bones ARV wise.

You are going to need cash or equity.  Maybe it is yours, maybe it is the previous owners, or maybe it is a partners.  

Perhaps what you are interested in is real estate syndication?

Buying 25 properties in a year is certainly not far fetched.  It is when you start introducing caveats where it gets hard.  

Trying to achieve above average returns?

Trying to buy and force appreciation to get your down payment back?

Having to buy distressed properties to match your return metrics

Having to buy in very specific neighborhoods to hit your metrics.

If you have the capital to buy 25 properties in a year without needing to refinance the principal back out, then why not look into buying 1 50 unit building?

There is a company called airdna that compiles airbnb data.  I think the data you are looking for is in their premium service.  I believe the occupancy data is simply based off of days when it is off the market, so theoretically it could include days the owners use it/rent to their friends. 

Probably the closest you will get to this is the Zillow API.  I am pretty sure they do not expose the listing agent.  Here is a pretty good document that has a large list of resources though:

https://gist.github.com/patpohler/36c731113fd113418c0806f62cbb9e30

You have to run your own numbers.  It isn't that important how the seller envisions the new buyer is going to run it.  In a $525/unit market, the turnover expenses can really kill your numbers.  I would worry about continuing to achieve 92% occupancy.  12 units is small enough where they could have basically had "good luck" for the past two years.

Without more data, it is hard to tell what is going on with this building. But most 10 caps I have seen in the midwest are on 1960's product, with plenty of differed maintenance.  

Are all the utilities tenant paid or does the landlord pay for some of them?  If the landlord pays for some of them, the property probably will not hit the 50% rule, and if it does, some of the numbers are probably off.

What kind of auction is this?  Is it a foreclosure?  Not being able to see the condition is a major one.  

If it is worth 200k ARV there will likely be enough competition to where if it is in poor condition there will be very little profit.

6 Months seasoning to use a new appraisal on traditional financing.  

In my area there is a bank that offers a pretty competitive deal without seasoning. The rate is a bit higher, but their closing costs are pretty low, making the breakeven between their financing and traditional several years out.  Then when you factor in getting your money back that much faster, it can be quite a good move.

Finding that in your market could be a bit of a challenge.  Basically you will have to contact a bunch of local community banks, credit unions, etc and see what they offer.  

You didn't mention if you went over your criteria/investment philosophy with the Realtor to where they could have a position to say whether this makes a good investment for you or not.  If the Realtor was simply projecting their investment views on the properties, then what value is that to you?

Honestly sending over a contract to be your exclusive agent, after missing the mark on what you initially asked would have me shopping around.  It sounds to me that they have been burned before because they *thought* they were providing value, and then the investor went with someone else who likely actually provided the value they were looking for.