All Forum Posts by: Madhu V.
Madhu V. has started 3 posts and replied 21 times.
Post: CHOICE Warranty - Service and on call maintenance
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
I had ChoiceHome warranty for my multifamily..but cannot recommend it ..service is not available when needed or in time, many repairs had warranty exclusion for some reason or other.. definitely not worth it
Post: Refinance my 3.5% at 30y mortgage or not?
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
Refinancing at a lower rate should lower your total interest in the current market. Pay back the savings from refinance towards principal every month and you will see your total interest go down and will payoff your loan in shorter time.
Post: 34 Unit apartment complex
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
Originally posted by @Andrew Johnson:
Khemaro Nuon For this deal, I'd guess your debt service is going to be $105K per year. And that's assuming 75% LTV, 25 year amortization and a 5% rate. I think those terms are on the favorable side of reasonable.
What I will point out is that NOI on pro-formas seldom (if ever) includes a holdback for cap-ex. So I just grab 8% of gross rents for a cap-ex holdback that's $21,600. That means your debt and cap-ex payments are $126K with an NOI of $142K. Annually you end up with $16K in cash-flow.
$16K / $500K down payment = 3.2% cash-on-cash return
When you look at the seller provided (mild eye-roll) NOI calculations does it include any kind of cap-ex holdback? If not, welcome to 3% cash-on-cash returns :)
But you do get to pay down some principal so you got that going for you...
In addition If you are borrowing the 500k down payment, the cash flow would be negative...need to watch out where you get the down payment from and even if you have it you might be losing the returns if you placed in CDs or other markets....just my 2 cents...
Post: Lender Referrals for Invesment Property
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
Try the local banks and also quicken loans..seems like 25% down seems like the norm for investment properties
Post: Multi-Family/Commercial Building Deal! Need input!
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
@Chris finck...i meant 40 to 60% of the gross income
Post: Multi-Family/Commercial Building Deal! Need input!
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
@chris finck...can you get the real numbers from the seller...can use 40 to 60% based on the area..dont see capex in your expenses...who is paying for all the utilities. Also insurance and taxes seem to be low. Consider how old the property is, which can drive the numbers up.
Post: Multi-Family/Commercial Building Deal! Need input!
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
@chris fink ...the expenses, taxes and inssurance look really low...usually around 50%...where did you get the numbers from...check with someone who iwns similar properties
Post: What are your expenses for you property? What am I missing?
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
How about capital expenditure ..it should be part of operating expenses.
Post: Need help with my first multi purchase in NJ.
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
do google search and it may give you interesting facts about the property and its history...i once found a property that was listed for 100k lower earlier than the current listing
Post: Northern NJ Commercial Lender Contacts
- Investor
- Parsippany, NJ
- Posts 21
- Votes 6
@Shefali R. Did you try Provident Bank...recently used them for my multi-family (commercial) loan