All Forum Posts by: Lee Ripma

@Carrie Hallensleben,

You can also do this in google sheets or excel if you want to do it yourself. 

The payment function will let you set the interest rate, the percentage, and the loan amount. So if your case for 20 years at 6% and a $112,500 loan it would be PMT=(.06/12, 240, 112500). Payment=interest on loan/12 months, number of payments in 20 years, amount. Using that makes it easy to mess around and see what different payments would be. You can easily download an amortization table as well. 

Sample Usage

Oops premature send. Hopefully you got the gist-that I'm interested in apartments!

I guess vacation rentals are more popular in CA! Yes I would very much appreciate it if you would send any value add apartments (including a 50+ units) please send my way!

@Marvin S.

I'm actually mostly interested in acquiring value add apartments. I would only be interested in a vacation rental in very select California markets-where is the one you're talking about? 

Thanks for keeping an eye out for KCMO multi's! 

Best,
Lee

@Eli Altman

Hi Eli, 

You've gotten some good info already. I also agree with @Chris Mason that these cute pre-fabs can cost not so cute dollars. I went to a presentation about a month ago by a company called AVAVA that is up in your area. 

http://www.avavasystems.com/PrefabHomes/

They are really cool but a bit pricey. They actually get cheaper as you go bigger, so you could do a 2 story one on your pad out back. My concern with these is related to how much value they add to your home. Apparently they will add about 75% of the price per square foot on your home. So if you had a 500 sf AVAVA and your home was worth $600 sf. you'd be looking at adding 225k in value to your home. $600/sf *75%*500=225k. I'd do this calculation based on the value of your home and see how much value adding one of these will bring. Then I'd do my budget based on that, making sure that I didn't pay more than 75% of the value it would add. So in my example above I wouldn't pay more than 168k all in to add one. 

You'll need to research building codes it is true that a stick built rather than prefab may be cheaper. 

Kithaus are small but on the less expensive side of cute prefab and they will finance up to 50%. If the numbers above hold true you should be able to get your money back with a cash out refi. 

http://kithaus.com/

I've done a lot of research on redevelopment with small pre-fab structures and I've never gotten the numbers to work! However, they may work if you're just adding one behind an existing home. 

Best, 
Lee

If you have anything with 5 plus units and some value-add in KCMO-I'm interested!

Hi Philip, I own rentals in KC and I'm going to look into this. It seems like it would be a selling feature for the tenant-it should save on power bills and give them a higher level of security. Pros-lower power bills, appeal when listing, security Cons-tenants don't know to use it and they call you, one more thing that could break I'm going to check with my PM and see what he thinks!

@Josh Sabourin

The new BP book Set for Life is all about this situation. I choose to rent in CA and invest out of state. Buying a duplex or a SFH in SD that you can add a unit to the back of is going to take a lot of cash out of your pocket. Even it's a fixer upper, even if you get a low down payment loan. The money you pay your parents in rent is likely less than the PROPERTY TAX on buying. So I'd just go back to your goals. What are they? Mine or cash flow, so buying out of state makes sense. Yours may be different!

You bet @Andy Thrailkill!

Lee

@Andy Thrailkill I am an environmental consultant in San Diego and I'm one of the 7 consultants that @Colin L. is talking about. I've worked on a lot of projects that required a site development permit or more, I specialize in Biological Resources and MHPA issues in the City. If you ever need a biological opinion, happy to lend a hand.