All Forum Posts by: Andrew Syrios

B areas is a bit subjective, but I think Hyde Park, Westport, the Waldo and Brookside in KCMO as well as the older parts of Lee's Summit, much of Blue Springs, Olathe, Gladstone, Prairie Village and Shawnee are good areas to look.

 Sort of, but there's no hard and fast rule. There is no exact rule for valuing properties and you have to use the tools that are available in any given circumstance. 

In that case, unless the plumber will need to turn the house into a giant construction zone, I wouldn't put them up in a motel. Think about it this way, if this tenant was a homeowner, would they stick it out while it was being fixed, or would they hole up in a motel? I think in this case, they would stick it out. So maybe just offer them a rental discount if it's really bad. But if it can be fixed quickly, I'm not even sure that is necessary.

Up front CAPEX should not be included, but it's important to include recurring CAPEX in the operating expenses (at least in my opinion). Banks often call this item Replacement Reserves. HVAC, roofs, etc. will go out and those expenses will need to be paid out of cash flow, so it should be accounted for up front.

Welcome to BP Sumit and best of luck investing (and creating history, of course)!

Welcome to BiggerPockets Fatimah and good luck investing!

Well said.

Two major questions: 1) Is this the only bathroom in the house? and 2) This one is for the plumber, how long it will take to fix? If they have a 2nd bathroom or the project can be finished in a day, I wouldn't put them up in a motel. Maybe just give them a rental discount if it's bad enough, which would be much cheaper. But if the house is going to be turned into a complete construction zone without a functional bathroom for several days, then yeah, it's pretty standard to put them up in a motel. But you want to get as good an idea as possible as to what you are dealing with and what it will take and how long it will take to fix before you make such a decision.

Comps for small multi's are challenging. Yes, you want to look at any comps you can find. If you have to look at duplexes, triplexes or 6plexes, that's fine, just make the appropriate adjustments. Even look at single families, not as a direct comparison, but to get an idea of the quality of the neighborhood.

Also, fourplex is about the time when you want to start looking at cap rates. Do you know about what cap rates in that area are going for normally? You can look at comps or ask agents to get a feel for it. (This is not an exact science). Then if you have an operating statement on the 4plex, that can give you an idea of what you're looking at. You can also use a pro forma, but use your own, not the seller's, and use conservative numbers. It is not at all uncommon for sellers to give grossly exaggerated pro formas to puff up the supposed value of the property they are trying to sell.

That looks fantastic, great job Nick!