All Forum Posts by: Rob Beardsley

One thing my mentor does is give a $1 lottery ticket to each of his tenants that are current and on time with their rent each and every month. The perceived value to the tenant is greater than $1 and the value to the owner/investor is certainly much higher than the cost of providing the lottery ticket to each tenant.

Good luck!

@Shiloh Lundahl Hey, what is your formula for adding value to more experienced investors or people in the industry you want to gain value from?

It depends. If your cost of debt (4% in this case) is greater than your yield (cap rate) then you have negative leverage, meaning the ROI gets worse with more leverage. On the other hand, If you have a cap rate of 6% and debt of 4%, then you have a positively leveraged deal and the return keeps getting better and better the more leverage you put on it.

If you give me more numbers I can put together a little spreadsheet. I love numbers!

Cheers!

Congrats! This is an amazing deal from all angles! Your point about not being too concerned with 1031 at risk of buying an ok deal is very interesting.

This could be a great reposition opportunity if the rest of the street/neighborhood is nicer. Get a good inspector to really identify all of the pressing issue that NEED to be addressed. Additionally, look at the neighborhood to determine what type of exterior/interior renovations need to be done. If it's a good deal then every dollar spent on rehab should have a great return. Good luck!

@Mike Rodack Hey if you still need help with contractors, there are lots of active BP folks from Pittsburgh that can help with that. Post in some of the more recent forums. Good luck!

Would be interesting for us to hear where you ended up!

@Garry C. Yes! Good mortgage brokers are also worth every penny they earn!

@Alex Deacon Thanks for the comprehensive response. I won't in Pittsburgh until January. How would you recommend I familiarize/study the submarkets and individual neighborhoods while I'm gone? 

Cheers!

Please don't get too caught up in the numbers themselves but rather look at how the information is presented and what information is present and what is missing. Any and all comments are greatly appreciated! Thanks!