All Forum Posts by: Michael Albaum

Hey Keivan, that seems outrageous for a 30 unit building. Unless it's in a horrible area that will require a ton of babysitting, 30 units definitely seems large enough to get some bulk discount. I own property out in Covington, KY and have 30+ units under management there and am paying 7% or rent collected and 50% of 1st months rent as a lease up fee. 10% just seems way too high. Do they also have markups on construction/repair work that's done on the property? 

Hey LaRhonda, I don't see any calculations here...did you forget to attach it? It's always super helpful if that's attached as it saves folks from having to do the calculations for you. Also, just make sure you account for PM fees, reserves/cap ex, maintenance in your monthly cash flow projections. Also, the 5.5% seems SUPER high for whats going on right now in the market. Lastly, where did the $48/mo for insurance come from? It seems quite low.  

Hey Jacob....so just so I understand you, the purchase price is $75K, it needs $25K in rehab and the ARV is only $80K?! That seems insane! There isn't a car fast enough to get me away from that property. I'm hoping you just made a slight typo, but let me know...

If you could pick it up for $35K, then it could be a deal, but any time there is a leak, you want to ensure that you're dead on with your rehab numbers. Make sure water hasn't gotten in places you can't see as that can quickly blow your rehab budget out of control

@Erin Butler each lender will be different. You should ask them what they prefer and try to keep them happy. They happier your money partners are, the more they are likely to lend to you again.

@Andrew McManus I just opened a HELOC on an investment SFR I own in CA. They did up to 80% and I went with US Bank. Best of luck to you!

@Anna Boguslavsky I’m also a northern CA resident and have actually invested in Murrieta a while back, but have since turned to investing out of state. While there is more to learn (local laws and compliances) it is totally doable and there are numerous markets worth investing in. You just need to find one that resonates with you and go in there and start doing deals! Beat of luck!

@John Cole find a city with population growth, job growth, and salary growth. There are numerous cities with these so any one should make an ideal market for investing in. You need to narrow in on what else in a market makes you feel warm and fuzzy. Tons of deals to be had/made all over the country. Good luck!

That's how I would do it....unless you are promising folks a particular return. Then you would distribute to them based on that promise independent of cash flow.

Hey @John Lombardo, I like to use cash flow, since this is the metric that determines what the usable return is on the initial investment made. If you distribute based off NOI, you could get yourself into a deep hole and quickly if you have debt on the property.

Hey @Robert Delaney, I don't see any line items expenses here, so it's tough to say if you have an accurate analysis here. Also, are you sure you will qualify for financing with only 5% down? Lastly, if you use the 50% rule, you're in the red each month. Maybe I've missed something, so can you help me understand a bit better what exactly is your question here?