All Forum Posts by: Natasha Jansen

@Steve Morris and you should try being less condescending and more accepting of the fact that people will hold opinions that are different from yours, and that’s ok.

Included in those who hold a differing opinion are court judges who are responsible for interpreting laws and the constitution and have already concluded on the topic that the contracts clause does not trump the police power of a state to protect the general welfare of its citizens - a power which is paramount to any rights under contracts between individuals.

For future reference, don’t assume that people are uninformed because they don’t agree with you.

@Supada L. I’m assuming there wasn’t any maintenance and/or capex reserves in your monthly numbers before cash flow? Or just maybe not enough? What about an inspection before close? As a rule of thumb, I always have an inspection before close and usually set aside ~10% reserve in case any issues come up but this may be more or less depending on the age of the building and any recent upgrades. I assess my cash flow after taking that figure into account. I find that marketing packages from seller agents and turnkey providers fail to take this number into consideration or far underestimate it. Same with property taxes (sometimes they use the same figure as the existing owner is paying not taking into consideration that a sale - especially one that has an increase in value since the last sale, will trigger any increase in property taxes) and same with property management fees if they account for it at all. It’s important to figure out all the numbers on your own without relying on figures provided to you.

Like others have noted, now may not be the best option for you to sell since you’ll have to pay 6% + to do so, unless your market appreciates very quickly. However, if your market does appreciate well, then that may be able to compensate for the (hopefully temporary) loss of cash flow in the long run.

If you need any further guidance, feel free to reach out anytime.

@Nolan Yamada I think it really depends on what your/parents income tax returns show. Most lenders will look at your last 2 years tax returns. As an example, my husband is self employed. His 2018 tax return shows a loss for his business, and although he took home a significant amount of money, he still had trouble obtaining financing at a reasonable rate.

@Prachi Metha I can’t speak to your particular situation but I can tell you that the last deal I backed out of was because of the tenants. Usually when inheriting tenants, you have minimal interaction before closing, however on my last deal, I had a bit of time with them during the showing and during inspection and with everything happening with the eviction moratorium, I didn’t want to chance getting stuck with these tenants who seemed super sketchy (ex. Names on leases I was given didn’t match anyone I introduced myself to on-site and seller never provided me with IDs nor did he ever do any background/credit checks or collect a deposit).

As for SFR vs MF, I prefer MF mostly because if I have a unit vacant or someone unable to pay rent, I at least have income coming in from the other units vs a total loss of income with a SFR.

@Julie Hill I've never been much of a math person myself but I haven't struggled too much with the concepts needed for REI. My issue has been that I do the calculations once to give myself an answer without writing it down and then need to re-calculate if I want to revisit a deal or compare it to another later on.

Two things have helped me:

1. When needing to analyze a deal quickly, I turn to standard rules of thumb (ex. 70% rule for flips, 10% rule for determining B&H value, etc).

2. I use an app called DealCheck to keep track of all deals I've analyzed. If you haven't used it before, essentially you put in all the data of a deal, it calculates everything for you and keeps record of it in case you want to reference it later. I can do most REI math quite easily but I love that the app can also help you see B&H projections for years down the line with the swipe of a bar. For example, I can see how 10 years down line, my income/expenses have changed and also what I can expect to get back if I decide to sell 10 years down the line taking into account anticipated appreciation, selling costs, etc. Let me know if you try the app out and how you like it. If you have any questions about it, feel free to reach out.

@Web Annacius best of luck!

@Tyler Wisner I’ve been having the same issue for about a year now. I’ve tried the wholesaler route with a couple different people but they haven’t brought me anything good. This month I’m working on marketing directly to homeowners and in addition I’ve also pivoted to developing MF.

@Web Annacius although you may not be able to evict her, you may be able to still bring a civil suit against her for non-payment or at least tell her that’s your plan. She may not be concerned with eviction if she has another place lined up but a civil suit will effect her regardless if she is a tenant or not.

@Steve Morris sure, you are entitled to your own opinion on the topic. I just don’t hold the same sentiment.

@Andrew Rosenberg don’t worry, it didn’t come across that way at all. Thank you and have a great weekend yourself