All Forum Posts by: Mark Bradford

Im somewhat new to the "true" ways to figure properties. So help me out. Can you explain your math to me.

Here it is. Nice large older home off of a downtown area. Not to bad of area. Some abandoned homes and some quite nice This home is done! Newer windows upstairs, two new furnaces with a/c, newer water heater, new vinyl siding (done well) only 30k to buy!!!!! So where is the problem. All utilites will have to be paid me!!! Math is broke down like this. 10 yr loan 305/ month est of 300/ month total utilities (gas water and elc). 60/ month taxs and ins. Give me a "base" month cost of 665. Lets not get into vacancy rates and maintance accounts..... Lets just talk basics. Each unit (2) is a two bedroom two bath. Dishwashers, stove, refridg, and cloth washer and dryers. The believe i can rent the upstairs for $500 and down stairs for 575. Total income of 1075- 665 leaves 410/ month. Do I buy?

I just called local banks and asked what they had to offer someone doing what we do. I also do 12 month interest only for that 6.25%. We start with 20% down for the purchase. Then give him an evaluation of the rehab costs. He will repay me the 20% after i return receipts to him then allow me to pull from the line for the rehab cost as long as i show receipts. It is a huge blessing to the business. Its not aways smooth there are bumps in the road on some deals but overall great asset to our team.

For our last few deals we have found that "local" bank guy! This makes all the differance in the world. He does any loan amount plus rehab line of credit if needed. Also when I want to make an offer on a property he gives an approval letter very quickly. You will have to have a higher percentage rate. But ours is at 6.25 which is still great in my mind

Thanks Brandon, im always using my ipad and the image option doesnt seem to work. So that will come when i get time on a computer. I will do the Keyword Alerts thanks

My wife and I started investing in rentals about 10 years ago. We still own our first unit (single family condo). 30 yr loan and 10 yrs later wish we could just dump it off our books. You might hear more later on it (LOL). When the market changed about five years ago we started to buy more up. We currently have two SFR, one condo and two muti units.
One year ago this past January ( due to a need in our family and in the area we live) we launched our property management business, Pinnacle Property Group, Inc. PPG manages seven properties plus our own properties.
Three years ago we started to rehab and flip properties as well. We have completed and sold our first in nine months from day of purchase! We are in the process of completing our second in the next few months. Both properties were full rehabs.
We try to use this as a second source of income (Suzie my wife is our GC/ contractor work ;-) she is a "stay at home" mom!!!!!) I work for a large company in thier maintance division and assist her on GC /contractor work.

Some goals for our businesses are: We wish to increase our flip business without taking Suzie's hand off the GC/ contractor work. We want to buy and hold a few more SFR's while the market is down and increase our inventory for management We have read many books and websites through the years , but BP seems to have the largest knowledge we have found yet. Wish we found it sooner.

Hope we can help others and pick the brains of some of the greats on BP as we go!!

One other thought: We have a location at the end of the paragraph about insurance to have the initials of the tenant or tenants to initial. We do this so if a problem does arise we can prove that they did know about the insurance. Also I provide a contact of a place to get renters insurance if they wish to use my person.