All Forum Posts by: Nathan Platter

Hi @Chris Hansen 

Most residential buy-and-hold investors aim for $300/month/unit, but are very happy with $250/month/unit, and call it a no-go at below $150/month/unit.

However, it does meet the classic 1% rule, so some would say it's good to go.

For me personally, the monthly profits seem a little slim but the CoC is roughly 10% a year. I'm torn.

If you love the properties, see if you can:

• Raise rents, or
• Buy at a lower price, or
• get seller financing, or
• acquire and renovate to then raise rents later

Hi @Jason Fields ,

If you're looking for books, the Store section of BiggerPockets can help you with finding great reading materials, both wholesaling and other strategies.

If you're more into articles, you can also check out the  Strategy section as well. There's one section completely dedicated to wholesaling.

Happy reading!

Hi @Chris Hansen

• Capex seems rather high at 10%, should be closer to 3%
• Insurance also seems high at 10% try going with a percent of the ARV $380k should be $2,400/year)
• Taxes also seem a little high, but that's the market you're working with

I go for the 50% rule instead of itemizing everything, in that case it'd be $2500/month in expenses -> $2500 in net income, but then subtract off PI and you're closer to $900-$1000/month in profits. 

Go to the Tools section and check out the Renta Property calculator, it'll help find better percentages.

https://www.biggerpockets.com/buy-and-hold-calcula...

Hi @Jalen Henningsen ,

GC: One thing to keep in mind about Uncle G is that he apparently works 12 hours a day, and 90 hours a week. Not many can live at that level. If your goal is to be similar to Uncle G, he'd recommend increasing your income at your 1st job (commercial RE loans) before adding on other roles (e.g  realtor and bartender) but also get a commission off your labor.

BP: If you're asking for the BP community's advice, I'd recommend keeping your current role and only bartend to increase your income, so long as it does not take away from your primary income source. 

Me: Go for the househack (2-4plex) and then build your portfolio according to your personal goals, whether that be more residential or into the Commercial space.

@Amber Gonion PM'ing you now.

@Mike G.

I often reach out to local realtors who are still using MLS access (I never registered for it) to run comps.

When evaluating rentals, I typically look at the financials more than the comps since income will be the primary factor.

@Vlad Bahatyrevich , Sorry to hear it's been a rocky start. Almost all property managers have standard Yes/No tenant screening criteria when working with potential tenants (e.g. Income 3x higher than rent, evictions in past 2 years,...)

In Memphis Invest's defense, I'm 99% certain they have a minimum Income requirement to reduce the likelihood the tenant "can't pay rent"

I previously worked for a Turnkey provider (MN/WI properties) and the rent guarantee was actually guaranteeing that the property was rentable. Sometimes we'd run specials where the tenant's rent was also guaranteed, but that was rare. Yes, "rent guarantee" is a bad label when referencing a building's renovated condition.

@Victor Lebegue

I like the first part of that agreement (being a handyman in exchange for some equity or profit sharing)

I haven't heard as many arrangements for the second part (lending your credit to get 30 year notes) I'd recommend running that tactic by legal counsel to make sure you're not legally obligated if things went bad on specific properties or the company as a whole. Last thing you'd want is to take out loans and the company leaves you in the dust without and recourse.

@Sepid Pooy

I am in 100% agreement with @Tim Swierczek and @Brian R.

From the Minnesota Attorney General:

"Sale of the Building

If the landlord sells the house or apartment (as opposed to foreclosure by a bank), the lease transfers to the new owner (buyer)"

https://www.ag.state.mn.us/Consumer/Handbooks/LT/C...

The landlord is attempting to get you to vacate so they can then get a new tenant with higher rents, thus raising the value of the property. You have the legal upper hand. 

Congratulations @Todd Dexheimer ! 84 units sound daunting but I'm sure your perspective changes after successfully going through the process from start to finish.

To your success!