All Forum Posts by: Luciano A.

@Rajesh Mittal

You might have a commercial mortgage if you packaged the condos together especially if you got a loan from a local community bank. However, I am sure you can sell off one at a time to someone who wants to buy to live in. So Cap Rate really doesn't apply in your case if it's a portfolio loan. I am just assuming based on the small amount of info you had on your response. If I am wrong I apologize in advance.

Best

@Krystian Kucharzyk

As @Joe Villeneuve mentioned....cap rate is used when comparing commercial properties. Even though Duplex is said to be a multi-family investment it is bought using a residential loan. One to four units are residential thus they are valuated by local comps, not cash flow. If you are looking at 5 units or more then you can throw out CAP Rates and NOI.

Let's keep it simple. What is your rent minus expenses (taxes, Insurance, Mortgage, CapX, Vacancy, etc) and that leads you to your cash flow. Cash on Cash is a good way to see how much you are making on your money. As a new investor, all you are worried about is how much money will you make a year buying a house/duplex. And if you like the amount then move forward and buy but everyone has their own preference on the amount so find yours. 

Any time I hear an Agent list Cap Rate on a single-family home I know they don't know what they are doing. 

Some would argue a Cap Rate is not a good measurement to use in Multi-Family, unlike true commercial-like Triple Net properties. But won't overcomplicate things.

Great to see you are looking at properties so best of luck

@Alysia Korelc

I have done two lease options with tenants and you have to make sure you use a good lawyer as the rules here in Texas are strict. Many realtors who are seasoned will not draft a lease agreement with an option period. IF you need a lawyer DM me and I will send you someone in Austin who does it and is reasonable. 

Best of Luck

@Kris Laku

You are already on the right path. At only 19 you are educating yourself and utilizing this site you will find locals around you that can help you to get into your first deal. 

Read as many books and talk to as many people in your area through REI meetups, seminars, etc.

Take your time, you are already ahead of the game compared to your peers.

Best of luck  

@Steve K.

I like REO products and I too wish they could have locks without SIM cards. Kwikset does have one that is Bluetooth capabilities but to change a code you would need to be close to the lock. I am sure with the AirBnB industry there has to be something to accommodate locks without wifi.

In regards to the security deposit. We have found those who are serious will have no issue given they call our office versus a cell phone so they can be assured they aren't being scammed. When we have hesitation from prospects we do tell them we can show in person but we then give them the time frame versus them telling us what day/time works best for them. In addition, we ask for their email address at which time we send an email explaining our process and a link with an invoice. Our property management software allows us to send invoices that can be paid via email. I think Quickbooks would allow you to do the same.

Some of the bigger investors and with COVID virtual tours which I think Zillow helps with are becoming very popular.  

Hope this was helpful

@Cory Lucas

It sounds like you are moving along well without this mentorship. As suggested you can open up your circle of friends by going to meetups and on sites like this to meet people you get along with and have an interest in real estate. In today's society, we have too many coaches and mentorship programs run by salespeople, not operators. Those who are doing don't have time to set up seminars and try to sell $10k courses. I think finding like-minded investors that have nothing to sell will be more beneficial in long run. 

Best of luck

@Dylan Katz

I would look at 

Kwikset 99390-004 Halo Wi-Fi Smart Lock Keyless Entry Electronic Touchscreen Deadbolt Featuring SmartKey Security, Iron Black

This gives you both the ability to use code entry but also allows you to rekey the lock when the tenant moves out. Kwikset SmartKey is great savings when the tenant moves out. 

We normally will rekey to our office key when the unit is empty so all of our team members can have quick access then we rekey with new keys before a tenant moves in. 

@Joe Martella

In my experience best protection is having GREAT insurance and umbrella policies in place. In regards to the cameras, these are the cameras we have liked using. 

Can buy for around $200 on Amazon.
Reolink Outdoor 3G/4G LTE Mobile Cellular Battery Security Camera Reolink Go

You simply put in a sim card and download their app. Easy to use and the best thing is real-time. Has speaker so can speak and hear what is going on. We sometimes will welcome the prospect over the camera's speaker which sometimes surprises them but also lets them know we are watching lol. 

@Joe Martella

The cameras are easy to put up and takedown. We don't leave them at the property after it is rented. So the cameras get used often. Allows us to sleep at night knowing if someone breaks in we will be alerted. Versus showing up to find front door smashed in or broken window and appliances stolen. Has been super helpful in the new builds that we do as well as keeping an eye on our empty units. Doesn't make sense if you have a few properties and they get rented fast but once someone scales and they have say 10 empty units all across town it can get costly to have someone go check on them weekly. Time is money.

Liability issue....... cant someone fall while you are showing the property? And if there is a tripping hazard should be taken care of before renting it out. The tenant can fall after renting the property. And of course, good insurance is priceless.

@Mike Gordon

We usually pay $10-$20 for another tenant's wifi access or neighbor depending if SFR or Multi. Units rent fairly quickly so I agree the hassle of having wifi setup is too troublesome. There are new door locks that have the ability to work without wifi but they can get expensive. Our cameras use a prepaid sim card from Tmobile. No wifi is needed and no monthly contracts.

These locks have up to hundreds of codes you can program. You can set code that is only good for a certain period of time. So if the prospect wants to go see it on Saturday between 1-2 then you set code through your phone with access limiting to that time frame. If they come at 2:10 the code they received will not open the door. 

The cameras allow you to see them come and go while the unit is empty. In my experience anyone sharing their cell number, paying deposit arent the ones that will show up and steal the copper lines. As another post mentioned above, posting a vacant property online or a sign on the front yard can attract thieves.  

Changing wifi carrier or password does not do anything to the locks. They still use the stored codes. A new tenant that moves you can program their desired 4 digit code thus they dont have access to changing codes without notifying you. You can give contractor access the same way as you give to a prospect.

Hope I was able to answer your question.