All Forum Posts by: John Knisely

I agree with @Jonathan Greene, not necessary to go for a big name. Might also look into any local REIAs and see if there are any agents/brokers with the investment mindset. There can be a big difference between a typical retail agent and investor agent. Also, congrats on becoming (soon) an agent and welcome!

@Franchesca Ramaker, not able to see the report at the link. What's the cash on cash return? That's a big metric I look at. Personally, the 5%s in the expenses is not as conservative as I like to be in my analysis. I use 1 calendar month a year 8.33% for vacancy. You'll likely see at least that right up front while the 30k in repairs are being done. Capex and repairs, hard to say without understanding the condition, but I analyze conservatively and put 10% in all of my expense categories when I run the BP calculator. Am I being too conservative? Maybe, but I'd rather be overly conservative and reap the upside than be too aggressive and be in the hole.

$40 a month is not a lot. I'll admit though, my first purchase I didn't do much analysis above a Rent-Mortgage and a utilities estimate calculation (quickly learned why that wasn't right). If you budgeted for property management and are self managing you could "pay" that to yourself for now but if you desire in the future to outsource PM then it goes away of course.

Tough luck Fred, I'll take a quick look for you although I'm sure the comps your agent provided are solid. PM sent.

@Kent Baltare, have you asked an agent to comp this yet? Seems like something they could give you a pretty quick answer on, especially in a populated area such as San Jose.

@Art Maydan why do you consider them superior? I would think you're just inviting more wear and tear on a property. Depending on how transient your market is though, a furnished monthly lease (corporate housing type scenario) could be financially advantageous without much additional wear and tear.

Typically the premium is paid on the short term lease, aka month to month...not the 1 year lease. More turnover possibility =more expenses for the owner.

One word...Leverage. Leveraging you money and time. The ones that are on a blistering place are likely using other people's money, skills and time by hiring others, borrowing etc. Depending on your comfort levels in doing this, you can acquire properties at a breakneck pace, but there is often more risk by doing it this way. The most conservative investors are paying cash for properties, self managing and getting rich slowly.

If you are willing to pay you might have good luck posting an ad on Craigslist for a scout.

Hey @Stephanie Knox. I am also a big credit union fan. When I consulted the credit union I bank with they said they couldn't finance the place I was buying with the down payment I wanted. Not sure if it was an overlay that prohibited them from doing so or what. I ended up going with a mortgage broker and was pleased with how they handled the transaction. Not trying to dissuade you, I have heard good things about Franklin Mint as well.

Also don't hesitate to reach out to me if you are in search of an investment minded real estate agent. The agents on my team are all investors (self included) and we are always looking to help new and seasoned investors acquire great investments!

@Fred Stevenson, did the appraiser highlight the reason for the large difference in their final number? Provide their own comps that were different than yours? Curious about which side of the data is skewed. Did you provide the comps yourself through local MLS aggregating sites or directly from MLS? Don't think I am doubting you, just curious. Would be happy to take a look at the property and comps and provide a second opinion as an agent.

@Fred Stevenson sorry you are dealing with this. This is not an area I'm very familiar with but I had a similar thought as @Chris K., cash for keys. I would absolutely hate to do it but it may save quite a bit of hardship and headache compared to a full legal process. Would definitely make sure though that if they bite on that to have an appropriate document signed by both parties removing them from tenancy of the property.