All Forum Posts by: Joseph Hammel

I use a this spreadsheet to evaluate my deals. A few things to consider. An appraiser will add in management even if you will be self managing. A good maintenance budget it 8% of gross give or take. I also figure 8% for capx. Vacancy rate depends on the area but bank may figure 5%. You shouldn't be paying 5.5% interest like that one poster said. I'm getting 3.5% on 5+ and even 2.875% on 1-4 from local banks. 20% down, 5/25. And one appraisal never have I ever paid for 2. Some even are using AMV for smaller property that cost $20.  

It's not illegal to deny section 8 in MN where the OP is from and aside from that if you have a 3x income requirement a high percentage will still not add up to that if you add the section 8 payment to their income. If they did they would most likely not qualify for section 8 anyway. My experience has been that the section 8 tenants I have inherited or chosen have been either more high maintenance, or not able to pay the sometimes very small amount of rent left over after the program pays most. Not all the time but more than the average tenant.  

My wife works 20 hrs a week as a RN in a clinic 1/2 a mile from our house and still gets health care for our family. Since its so small she knows all the practitioners and got a script the other day w/o needing a visit. She took a big pay cut going down in hours and pay from the hospital setting but loves the daytime normal hours. 

My experience is SF make $100s a month in CF and MF make $1000s a month.

I used to be an agent while investing as well. Some agents are believe it or not, not that ethical. I'm not saying that about yours but rather the selling agents. Sometimes my approach is to go to the selling agent of the property. They will be more motivated to make a deal go your way if they are getting all the commission and not splitting with a BA (buyers agent). Second reason is they may have a deal that came to them that has not hit the market yet. Or a seller who doesn't want it on the MLS. This might be larger complexes for higher money that they only want to talk to serious investors about. You would be wise to contact several agents and have a chat about your investments you have made, your goals, what you have for funds available, financing ect. You mentioned looking for a PM. This type of networking could help get a recommendation for a rock star PM. For that matter call PM's, lawyers, ect you might stumble into your next deal? Good luck and Merry Christmas to you as well!

Keep trying local banks. Ask to talk to the business or commercial lending side. Not the consumer side. It sounds like you don't qualify for conventional loans and that will probably be the case wherever you look. I've been capped out over 10 loans for a long time myself. Closing some loans soon with a credit union at 2.875 on a 5yr fixed with a 25 amort. 

I'm assuming your credit cards are just used for business and personal expense? Things you could pay with cash if you want too? Here's a hack. Instead of paying the balance at when due pay it before the statement even closes. This shift keeps the balance off of your credit and you still get the rewards if your into that. 

I say 50 is fine for a 1/2/3 triplex. I have a 16 unit running on a 80 and a 50 with no issues. Just turn the temp up to a higher setting but not too hot.

What type of venting does the current unit have? Standard vent (steel pipe going up) or power vent (pvc). If its standard then keeping it the same will be cheapest. If it is a power vent it might be cheaper to go electric. Just a basic unit. Then you need 2 breaker spots open, a 2 pole breaker and wire to run. 

I do lots of this stuff myself but my plumber says tank less are still not a proven tech. I would never put one in a rental.

If you cant solder sharkbite fittings are your friend. I can but these are so easy I use them on every heater I change now.  

Based on the bid for 4300 for a heater I would avoid the gas company. 

As far as buildup that depends on your water. Is it lime?, iron?, small amounts can be taken out with a water softener. Really need to get it tested to determine what you need. And don't just trust the company selling you something to be honest about it. They might oversell. 

Consider who will maintain the extra equipment. Add salt, change filters ect.   

@Nick Belsky 

Hey, I was curious if you had some more insight to my reply above?

Also what kind of fees are we talking?