All Forum Posts by: Larry K.

You are right to want this.  However,  I think it depends on the area and the players as to where estoppels would become standard.  Most 1 to 4 family I think I are still more in the residential world so agents and owners are just not familiar with it, and think they can get the deal done without going through it so they push back. 

Many tenants also would not want to sign the estoppel. They just don't want to be bothered or have to start signing papers they don't really understand. 

You may have to just go with copies of the leases and deposited checks,  bank records, etc.

you want something like a covenant. they are restrictions put on a property by a seller. your attorney should be able to guide you.

As long as asbestos is "encapsulated" it is fine. If you can do with good paint and stay on top of it you should be fine.

Otherwise just drywall over it and get a good clean looking new ceiling. Popcorn ceiling is an outdated look now anyway.

You may want to start looking in other areas. Start from the questionable urban centers and work your way out to the suburbs. Somewhere along that geography you will probably find a transitional area where the rent to price ratios are closer/better and you are still comfortable living there. 

Living in it is a great idea. You can do this repeatedly and end up owning several as years go on.

I think it really depends on the quality of the neighborhood. Of course run the rest of the numbers. 70% rule ties loosely to the Gross Rent Multiplier and Cap Rate.

You say your multiplier is 100. I tend to look for a multiplier of around 70 or 80 and I am in good working class area. Not high end suburbs. Not war zones. If you go to high end suburbs and you like it and want it that way then you will be over 100 but OK with little cash flow and perhaps higher appreciation. If you go to war zones then you may be down in the 20s or 30s and get great cash flow (on paper anyway) and little appreciation, if you are comfortable with such areas.

But in general, at a multiplier of 100 as a rule of thumb, I think you will come out ahead at the end of each month.

Not really. How have you been handling it so far? 

I have only 7 units but I still like to control the property management and have go to people on the ground as needed for maintenance, repairs, tenant requests, etc.

Yes I will be there

-Larry

BP is a site where generally we share our experiences and advice for the betterment of all, especially beginners.

Even mailing a money order or cert check is risky. With my tenants who dont have checking accounts they deposit directly at bank branch

What you are writing is very timely for where I am in my business.

It is possible the sellers are trying to pass their same mistake on to you. Also, some commercial brokers do not know income approach. They just sort of "comp" value the listing. They are looking for someone who does not know as much as you. And may find them. Can be frustrating.

Yes, loopnet premium will give you more listings and I upgraded a few months ago. You can pay for recent sales individually or via subscription which might help you to gauge the reality on the street.

Also, I think when starting in a new arena you dont get the same deals as veterans so you just might have to accept non stellar deals when starting out. After you have made some offers and then closed you'll find brokers calling you first. I think many of the deals happen this way.

Good luck. You'll get there.