All Forum Posts by: Ryan York

David Rawls

@Spencer Gray I'm beating those numbers significantly. I'm not sure if you were able to see my numbers. I just realized how bad the quality is on my spreadsheet. Sorry about that! We would've been able to pull out 70-80% of our cash (depending on the bank and the cap rate) and we'd be pulling in over 20% CoC AFTER the refi. My timeline of 2-3 years is rough as I've never done it before, so that could be better I suppose. What am I missing there?

Hey all,

What do you guys use for researching things like job growth and population growth? I'm having a tough time finding something up to date and easy to decipher that's broken down by city, or at least county. 

Zillow seems to be a good resource for things like crime and school districts.

@Anthony Dooley The seller accepted another offer so I will be scrapping the plan! However, it was good to hear input from so many, especially in the other direction. We will definitely consider these thoughts as we continue our search.

@Russ Draper Thanks Russ. What kind of returns are you getting that you think 20% Coc and 30% total return is low? I need one of your properties lol.

FYI, thanks to all for your insight. Always helpful! They accepted a higher offer unfortunately.

We have a lead who has a lease with an option to buy. Her option period is up this month and she can’t get the money to buy. We plan to flip with a little rehab. The numbers are good but my question lies with the legalities. How can we pay her in a way that she can pay off her lease option and we aren’t at risk of her walking off with our money somehow. We also don’t want her tied to the property in any way. There has to be some sort of addendum that says ownership transfers to us. We will obviously consult an attorney as well. Anyone done this? Is this possible?

Jeff Kehl thanks Jeff. Utilities were somewhat of a question mark because of the lack of information the seller has. Our plan is to utilize RUBS which would eliminate a lot of the utility expenses. With that said, not many apartments are Doing that in the area so we’re not totally sure how it will go. Most of The other apartments are also poorly managed or not very nice though. I think there’s an opportunity to be one of the nicer apartments in the area for a relatively low rehab cost. I think there’s a need for nicer housing in order for the city to really take off. I realize it’s only eight units but I’m confident there are at least eight people who would be willing to pay a little bit more for a quality space close to the main drag.

@Anthony Dooley Thanks again Anthony. I do like idea. It sounds like a master lease. Would you say that most sellers are going to be willing to do something like this, especially if they're talking to more than one buyer? 

@Michael Badin Thanks man. I agree. I think there's always that risk though. Outside of a property inspection, what else would you recommend? The place was built in 1970, so it certainly isn't new, but we see properties much older all of the time in our parts. I mentioned that they failed city inspection earlier in the year. I think that's almost an advantage because it didn't show anything huge like electrical, plumbing etc. 

@Richard White Thanks Rich. That's a good idea. We did ask for current numbers and they didn't have any. We will try seeing if they can dig up anything previous. Occupancy is up and down, but to me, it looks totally dependent on the management of the property. There's a couple nicer buildings that are full and a couple dumps with terrible reviews that aren't so full. As far as the actual rent, I'll check those out as well. The more references the better.

@Adam Adams Thanks adam! I agree I'd like our first deal to be a no doubter, but we work with what we have I suppose. You mentioned the expenses. Currently, the spreadsheet has them at about 45%. Normally, I would agree that they're going to hover around 50%, but I figured that considering all of the units have just been rehabbed, it might be a bit lower. I'm still accounting for $550/mo in capex and $250/mo in general repairs. That's 15% of the monthly income. Furnaces here are about $1600 a piece, so unless all of them break in the same month, or the first month, between our cash flow, capex and repair money, they shouldn't be too bad. If they do all break, we'll have the money to fix them so we won't be sitting with a bunch of units we can't rent because of the furnace. The utilities are bit a lower because we plan to use RUBS. 

What else would you include that I haven't in the spreadsheet?

@Roberto Gutierrez