All Forum Posts by: Jose Rueda

I noticed that the homes up north are a lot cheaper then the ones here in south Florida. Are you going to invest in SFH or Multi family? Multi family will probably make your return on investment better and it'll probably be easier for Property management.

@Davd so BREIA hosts their meetings the first Wednesday of the the month at 6900 West State Road 84 David,FL starting at 5:30pm and MDREIA hosts theirs on the First Thursday of every month at 5800 Blue Lagoon Dr,, FL and it starts at 6:30pm I believe. Check out their website for further details and events. I've only been to the one in Broward and the first meeting is free. Every meeting after that is 25 I believe. Just check on the website to make sure. For anyone who is new like me, this is a great place to meet other people who are already in the business and a great place to get information regarding the business.

Gabe Amedee Yes it makes sense now! Thank you for taking the time to explain it!

Gabe Amedee thank you for that explanation! It helps a lot on my journey to understanding it. I'll practice the math with properties in my area so I can get the hang of it and I'll be putting offers in. I plan on making my first deal before this year ends. One last question, and again sorry for bombarding you at this time at night, so if I was to take out an FHA loan, the 3-5% down payment would fall under acquisition and the mortgage for the year would fall under the expenses right? Then I would do my calculations after that correct?

Gabe Amedee also, how do you calculate the cap rate? Sorry for the newbie questions.

Gabe Amedee I'm fairly new at this and I'm still trying to understand the math. The math you did was great at explaining it. Would you still use that math to wholesale the deal? If not, what is needed? Also, what is NOI and how do you get it? What are expected cap rates that we should be aiming for?

@roy Gutierrez so how did the extermination of the fleas go? Any follow ups?

@Scott R so an example of one of the multi family units I've came across was a Duplex 2x(2/1) that was listed for sale for 290K. For sale By owner. ARV=210K Comps 1) 189k within 6 months 2x(2/1) 2)203k within 1 year 2x(2/1) 3)239 within 6 months 2x(2/2) Rental income would be about 2600 a month but being conservative I assumed 2400. Expenses 2016 taxes =4583 Insurance = 150 a month so 1800 a year for closing. Cap ex= 2400 for one month overturn Repair costs = 15K for new ac and roof. Property management 10% = 240x12 = 2880 MAO=(ARVx80% to be conservative) 168k -expenses 26663 =141337 The rule of thumb for the 50% rule states that half of my rental income would go to expenses and the other half would be gross income minus rent. So 2400/2= 1200- mortgage(667) =+533. If I buy it at 290k I would be about -171. 141k Would be the number that I need to buy the property after expenses but the owners do not want anything less then 290k. Other duplexes that are for sale are for sale 280k and up. Now I'm still new at this so I might be off on my calculations but from what I know now, it doesn't look like a good deal to me. If anyone has any ideas or comments to help me that would be great.

I had an awesome time at the meeting and meeting outstanding people! Looking forward to next month! 

I live in the Coral Springs area and I've seen a lot of multi family for sale from investors but the properties are over priced and after all expenses I'll have negative cash flow. I have come across some for sale by owners and made offers but the ones I've contact do not seem very motivated. Either way I have been following up every month to see if it changes. I was thinking about implementing the subject to strategy just to obtain a property here. If anyone else is having any luck please let me know.