All Forum Posts by: Kody King

@Justin Wawrzyniak

Hi Justin-

We have a group that meets on the last Thursday of the month. The group covers the tri-city market. It’s virtual right now but I can get you the information.

Kody

Awesome stories!

What’s the best thing you’ve done for a tenant? Did it cost you anything? Are you happy you did it?

@Shane Jenkins

Yes! If you’re interested we have a monthly meeting for real estate investors in the area tomorrow I can give you details on.

Everyone should read "Rich Dad Poor Dad"

What would you pay for this deal? I primarily invest in SFHs but an opportunity has come up to purchase a commercial property with rental units and the owner wants me to come up with a price...

The property has three retail/business spaces and 7 apartment units. The financials are as follows:

Monthly rental income: $7835

Taxes: $954/month

Utilities: $416/month

Insurance: $329/month

I'm projecting 7% vacancy, 5% repairs, and 10% cap ex. Are these reasonable estimates? 

I would say it's a class C rental, on the lower end for the area and will probably see more frequent turn of tenants. 

I will likely finance the property at 80% LTV and the property will need to cash flow...

The price that the owner thinks it is worth is much higher than I feel I can pay. I'd like to be able to cash flow $1000/month and have 12% cash on cash return. Here are my numbers:

How much would you pay for this property based on these numbers?

I can do Thursday at 5pm if that works best for the group. 

Kodyking42@gmail

@Kyle Palacios

Are you looking for something turn key? Do you want to be more of a passive investor?

Kody

@Isaac Phillips

Hey Isaac- Id be happy to connect with you to discuss this!

Here is the deal: 

Father in law is selling me a rental property that he has owned for 25 years. I think he originally purchased the home for 35K. The home recently flooded and lost a significant amount of value while he owned it. I offered to buy it for 20K . I'm rehabbing the property and would like to either flip it or rent out. The ARV will be around 85K after I put about 45K into it.

My question is in regards to the best way to structure the deal from a tax perspective? Should he simply sell me the property for 20K or should we do some type of partnership structure to lessen the tax burden? Any thoughts would be appreciated.