All Forum Posts by: Drew Sygit

@Sean Dillon figure out how to buy a 2-4 unit with FHA loan.

Then rent at least one of the units long-term for stable cashflow.

Try STR in another unit as well as the other bedrooms in the unit you live in.

You may even consider living in the basement, attic or worse unit in the building to rent everything else out and max cashflow. 
NOTE: you have to live their 12 months due to mortgage requirements. City won't let you rent out basement, but owner can live in basement.

It may suck for 1-2 years, but then you'll have gained so much knowledge you can do better on the next one!

@Chris Core

Can’t find a rental property to cashflow?

You’re probably thinking you have to offer asking price – not true!

To determine what to offer on a rental property:

• Determine reasonable market rent, NOT the highest!
• Deduct NEW property taxes after you buy
• Deduct home insurance costs
• Deduct maintenance percentage, typically 10%
• Deduct vacancy+tenant nonperformance percentage
  (we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)
• Deduct whatever dollar/percentage of cashflow you want

Now, what you have left over is the amount for debt service.

Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.

Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.

If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.

Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.

As long as the ARV checks out, this is the purchase price to offer.

It is probably significantly below the asking price. Who cares? If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.

You may have to make 10, 20 or even 100 offers to get one accepted at the price that meets your numbers.

This is what all investors did BEFORE the Great Real Estate Crash of 2008-2010.

@Cameron Porter should be available on our website end of next week:)

@Sujiro Seita Appfolio requires at least 50 doors

@Mike Levene cost to build per square foot is $200-$300 depending on finishes.

So, you can start with that.

@Greg Scott thanks for the mention:)

@Usman Khan welcome to the "fun" of S8, where you can rarely get ahold of anyone at a Housing Commission office:( THey are all overworked and underpaid.

Reference this for your S8 training and maintenance:

https://dhcmi.org/sites/default/files/upload/LandlordGuideBo...

Question is, was it profitable to do all this?

@Brett K. we manage in Class C areas, so have to deal with this a lot.

Options:

1) Boardup - pretty useless as easy to rip the off and advertises the property as vacant.

2) Armor Guard door frame reinforcement with temp double-key deadbolts. Really hard to kick in a door and then even if they go thru a window, can't open door from inside.

3) Remove mechanicals, store, reinstall upon MoveIn

4) VPS or DAWGS - metal window screens and doors. Best, but expensive and can still be defeated.

5) Cameras & alarms - sorry, we're not paid enough to confront a thief in the middle of the night! So, only effective if police will quickly respond and stop them in the act. Owners do NOT understand this:(

@Kyle Reedstrom assuming you are referring to Buildium syndication for rental ads?

If so, you should KNOW which websites your properties are being sent to.

Then, try to find other websites in your area that have traffic.

Many landlords use Facebook Marketplace, but a lot of time is wasted with leads from their.

Are you offering 3D Tours?

 Huh?

Why would they have to expense throughout the year?