All Forum Posts by: Mark Rosenberg

Thanks @Nick Robinson. Slight correction would be my plan is to just buy and hold and use my equity from current investments to fund future projects. Norada helps to consult in really all areas. It's been helpful for me finally taking that first step.

What are your thoughts on the %'s I put for vacancy and maintenance? I understand you may not have researched the area much but I wanted to be conservative to account for potential not best scenarios. When I saw those at 0% I was like uhh? It may be a brand new build in a high demand area but no way 0% is accurate. Once again, a lot to learn and if there's one thing that interests me most it's how other people do their due diligence and run their numbers. I know that's a loaded ask.

@Nick Robinson

I am working with an investment RE company called Norada. You may or may not be familiar with them being from California (they're based there).

They've been extremely helpful in the process being my first. They have strong partnerships which streamlined a lot, so the mortgage company, construction company and process in general has all been smooth and investment minded. I'm working with a person on their team I really like too (both credibility and personality wise).

Numbers wise:

Property: $221k

DP & Closing: $50k - rest loaned through conventional. Low mortgage 30 year will be

Renting: Mortgage should be around $838 a month and the property should rent for around $1,625.

Taking into consideration a potential 5% vacancy rate, 3% maintenance rate and 6% property management rate, CoC return for rent only should be around 8% (with roughly the expenses listed). Hoping for a 4% appreciation of the property YOY...

To be transparent, I'm still very much continuing my education on running my own numbers. I asked a ton of questions in the initial stages. At first the pro formas had 0% vacancy and 0% maintenance listed, which I adjusted for what I thought was more realistic numbers. The process will definitely be a sort of a learning experience, but show me someone who's first investment property it wasn't. Thanks for your thoughts again.

Mark

@Nick Robinson 

Firstly, I really appreciate your insight. Great responses. To comment/answer your questions:

1) After reading multiple responses to having a second bank account, I probably will set one up. Especially because I want to have multiple properties and it's better to be proactive from the start (man there is so much involved with getting going! It's kinda fun though). Would you mind advising at what point in an investment career its best to LLC?

2) It's a 1,550 Sq. Ft. 3b2b. So you'd say $5-$10k is sufficient for a new build? I like the goal to reach 10% of the value of the building (for expenses right?).

3) Got it. I liked Jody's suggestion of going through an independent company vs. one of the larger companies.

4). As I mentioned above, would you mind advising at what point in an investment career its best to LLC?

5) Very interesting you mention a multi family. I was between that and a single family for a while, pondering. I honestly was okay with either for my first investment. The reason I picked Port Charlotte is because (from what I can see by demographics and occupancies), it is a very leased area. Find picture attached for rented vs vacant...Interested on your thoughts on this pretty crazy demand from what I can see.

New build was more of a personal preference. I really want to buy and hold so I feel like having a brand new property will be appealing for many reasons. Also as you mentioned capex will be less because of this. My gut tells me that my new investment will be a multi property but I like the decision to go with a new build in a growing area as my first.

Once again really appreciate your time. Let me know your thoughts on the above whenever.

Mark

@Theresa Harris

I really appreciate your insight and time to respond. I'm normally a good saver and organizer so if it's not entirely necessary to separate, that's interesting. Do you have any thoughts on when in the investing process it's best to LLC and the advantages?

Thanks again!

@Jody Sperling all very useful information. I very much appreciate it!

Hi All,

I’m currently in the process of purchasing my first investment property and was curious how you organized your finances to prepare:

1) do you have a separate bank account for your investment properties?

2) what % do you save for capex or repairs? (My first property will be a brand new build)

Any other valuable information is much appreciated. Thanks!

Hi Everyone,

I have actually already posted an introduction but figured I'd post again considering I moved cities and was inactive. I plan to be more active now.

I recently moved to the Tampa Bay area and am currently in the process of investing in my first property in Port Charlotte, FL. This is the first step in a long term plan for me and I'm very excited.

It will be a brand new build (single family) that I plan on renting out. The process has been insightful for me to finally get my feet wet. My goal is to own 3 properties by 30, and I'm currently 25 (lofty and may be a stretch, but something worth aiming for).

I'm on the BP forums to connect with other local investors in the Tampa Bay market or those that have knowledge of Florida in general. I really want to network as I just moved here. If you have experience in specifically the Port Charlotte, FL area, I'd love to hear it.

I have a lot to learn but am excited to finally take the first step. Any additional advice would be useful as I (actually) get started. Words of wisdom counts!

Thank you all!

Mark

@John Warren Really appreciate your guidance and advice.

@Brie Schmidt Would be great to connect and discuss.

Thank you for responding @John Warren.

In my early stages, west of the West Loop and in the Ravenswood (northish) area have sparked my interest for 1-4 unit properties.

I'm still trying to educate myself on the suburbs. Obviously this can be a completely different market with a lot of single family homes.

Hi All!

My name is Mark Rosenberg and I'm a 24 y/o living in Chicago, IL. Currently I work in meeting consulting planning corporate conferences, which is what I studied to do in college.

Since early college I have been an investor in the stock market (long-term investments). Over the years I have become more and more familiar with it and have become fond on investing in general (retirement, stocks, mutual funds, high interest savings, ect.). From a mixture of investing and working throughout college, I have saved up some nice capital.

A couple months ago I started feeling unsatisfied with only having investments in the market. I felt like I wanted to start owning my own assets and profiting from them. This is what made me start studying up on real estate investing to add to my investment portfolio.

I’m very excited to get started in this over the next couple of years. I've come up with a 2-3 year plan to start making my studying a reality. I plan on being a “passive” investor, specifically looking at duplex’, triplex' or single family homes to buy and rent out.

I come to the community for multiple reasons:

- To learn from first hand examples what to do and what NOT to do

- To educate myself on smart ways to go about the process without being naïve as a beginner

- To really learn what to look for and what NOT to look for as a buyer looking to rent

- To look at examples and see what you all may see

I really appreciate your engagement as I'm early in educating myself!

Mark