All Forum Posts by: Michael Kay

Thanks Johnathan. These are monthly figures. Which ones should be higher and by how much?

Hi!

I think I found a good REI deal in Irondale, AL (outside Bham)

I'm estimating a $130,000 purchase price, $1300 monthly rent. Here are my costs

1. Maintenance reserve, 5%......$65
2. Vacancy 5% .............................$65
3. Management 10%...................$130
4. Property Tax............................$114  (Jefferson County records show this as half this but realtor mentioned this number, getting clarification now)
5. Insurance..................................$65

Anticipating some capex for a new driveway and repairing the crawlspace which had standing water in it.

Seems like a good deal otherwise. Thoughts?

I found a mixed property in Oakland, CA. Even with rent control it cashflowed positively after expenses. I figured I could stay in one of the studios with an FHA loan. Asking price was $1,050,000.

Alas, FHA doesn't do 5 units and I didn't have the $200k for a conventional loan. No seller financing available, either.

I found another triplex near me for $900,000 that had been upgraded. The rent for each 1 bedroom would be $2200 and even that was aggressive. I thought about turning the garage into a living space but it got bought up while I was trying to figure it out.

@Matt Ward Yes, actually. Well, mostly. The numbers presented were adding up to a little bit of profit if I managed it myself. I discovered a snag today when the listing agent doesn't want to give out copies of the leases so I could see what they are really paying. 

Hi hi friends!

Here's my situation: I found a pretty good deal on a property that is 5 units in Oakland California that has a lot of upside potential. Originally I wanted to use an FHA residential loan to house hack but because it's 5 units they won't go with that. Most commercial options I've looked at want 10 or 20% down.

Are there any kind of similar low money down loans for an individual investor?

@Arlen Chou , thanks for the notice. I guessed I missed it! :O

Hey, friends!

I just want to give a shoutout to Harper Cury @ Alabama Rental Managers. 

I had some questions about a property in the area and Harper answered my questions promptly and quickly, always a good sign. Definitely consider giving them a call if you need a PM in the area!

I I was looking for different economic stats about different markets and I came across this website, best places.net. 

Here's an example for Cleveland.

https://www.bestplaces.net/economy/city/ohio/cleve...

has anyone ever heard of this site and what are your thoughts? Also feel free to share your own websites for market research.

So I've been reading that cap rates are heavily influenced by region. If I understand this right, a good A neighborhood will have a lower cap rates and a B or C grade neighborhood will have higher cap rates.

What moves the cap rates of a neighborhood?

Hi!

I'm Michael and I'm always down to make new friends. I do software engineering by day but I am interested in REI.

I love creating and making things. I've started a couple of interesting ventures so I'm always down to teach everything I know and learn everything I can!

--michael