All Forum Posts by: Mark H. Porter

Ryan, make sure you do the assessable transfer of interest documentation.  It can be found on each county assessors website.  You can save quite a bit in taxes.

Jordan, I urge you to not go overboard.  I bet every one of us has developed extensive spreadsheets over the years only to walk it back to very simple calculations.

Operational Income

- Operational Expenses

= Net Operating Income

- cost of leverage (mortgage payments)

- Capital Expenditures (estimate based on %     of revenue)

= pre-tax cash flow

You may also want to look at NNN properties. I'm working in a deal for a single property that will give me a 12.7% ROE with absolute NNN. Now THATS about as passive as they come.

I think liquidity will be at the front.  Those investors with cash, or who have saved their EIDL, will be able to weather the operational impacts of covid.  They will remain in that inventory until the right buyer comes along.

I think the biggest impact will be to the small investor with less than 10 Units.

Eric, I know this is not what you want to hear but with the rental shortage in the US there is not one bad state.  The shortage is national.  You’ll hear people specify one state that they know of but there are dozens.

Trying calling Arbor Realty Trust.  I’ve found them to be very competitive and knowledgeable about that kind of purchase.  https://arbor.com/

Michael, it’s not even close.   prepare for 20-25% down, 5 year balloon, 25 year term.  This changes if it is under 4 units and you devise to owner-occupy one of the units.

https://www.investopedia.com/f...

So long as your honest intent is to live there full time you will be fine with the vacation home funding.

This is a cash flow per door question.  For instance, you’ll need 66 doors earning $250 per month per-tax cash flow.  Cash flow goes up and you don’t need as many doors and vice-versa.

$500k has $2.0 to $2.5 million buying power.