All Forum Posts by: Rodney Kuhl

@Christopher Hunter You need to know the estimated monthly rent for sure. Also estimated rehab is needed. From there you can figure out a lot of the other expenses. But you'd also want to figure out what the actual insurance costs are, etc.

@Account Closed I agree. But using the 50% rule gives you a quick analysis to see whether the deal is even worth your time. If I were to calculate the cap rate as an estimate using the 50% rule as I did and I came up with 6.7%, I wouldn't bother exploring the deal further. Would you?

@Ben Skove Gotcha, thanks! Yeah, I think the service is great. I just thought I was going to be able to upload my full application and it would cover all of that info as well. How are you gathering the other information? Do you have them fill out a hard copy and mail it back?

@Joe Butcher When you send them a PDF, is it a PDF with the fillable boxes so they can just type in their information, save the PDF, and send it back? If so, where do you go to create that document, as I'd love to do that. Thanks!

@Kevin Young Gotcha, thanks for responding. I'll keep this in mind for the future when I have more properties. Like you said, with just one property it's pretty expensive. Looks really slick and easy though!

@Kevin Young Thanks a lot! How much do you pay for that if you don't mind me asking?

I'm not exactly sure what you did in your calculation. Did you just take the gross rent ($900/mo * 12 mo) and divide that by the asking price? That doesn't take into account the expenses the landlord will have (which is what the 50% rule accounts for).

@Christopher Hunter Are you trying to wholesale this deal?

If gross rents are $990, the 50% rule says the monthly NOI is $495 (although from what I've heard, this is probably low for multifamily), and the NOI for the year would be $5,940. If I divide that by the purchase price of $88,500, I get a cap rate of 6.7%. So I'd say it's not a great deal. That doesn't even factor in any additional rehab costs upfront as well.

What are the estimated rents? I'd need that to figure out what the NOI is. Also, how much rehab is needed?

So I bought my first rental property and I am currently trying to get it rented out. I started using the TransUnion SmartMove to screen tenants. I was under the impression that my full application would be on there, but after receiving a response from an applicant, it looks like it is just the credit/criminal background part and not all of the other info you'd typically have on the application - employment, previous dwellings, etc.

Is that correct or did I just use the service wrong? If TransUnion SmartMove and the actual application are two separate things, how are most of you having applicants fill out the application part? Just sending them a PDF or having them fill out a hard copy and mailing it back?

Thanks!

@Shawn Holsapple Sweet! Let me know how that goes please.