All Forum Posts by: Samuel Glantz

Pay him in $100,000 increments over 9 years and lower the tax bracket? Just making a guess. 

I don't have an answer but if the roof needs repair that soon then just get it over with. I imagine it will help. No matter what you'll need it so don't chance it and wait. 

My father has a home that I manage that when bought was 4 years old. In 20 months since the initial purchase it had a broken water heater a major leak in the front yard watering system, and found that the prior owner severely misinstalled the laminate flooring. I mean it's not the worse things that can happen but it's about $1800 in damages to a relatively new house. 

While your not likely to encounter a lot of damages on a new home, it can happen and you never know if it's a cheap water heater or a major pipe burst. Best to account for it and not need it then need it and not have it. Kind of like a pm fee, even if you self manage, one day you might not want to. Just my 2 cents

Public school

Flip phones no data, cricket

Sell home, get in a rental for a few years. If you have equity use to pay off all credit cards, if no equity short sell and pay off smallest cc balances first and snowball to the next

Get rid of both cars, plenty of cheap beaters or if you need a nicer car for ubet/lyft then downgrade the expensive one, get a focus or civic, roll the 7k into the loan and it should at least cut the payment in half

Get rid of cable and anything that is considered a want. 

Cut up and throw away all credit cards. Don't cancel as that will hurt your score but remove temptation. 

Top Ramin, spagettios, pasta, cereal, basically eat cheap, no deserts, no soda, alcohol, dinning out, etc... 

It's gonna hurt but you can do it. 

It looks good, but why is the rehab going to take 9 months? Also why wait 18 to refi? Those are the only two numbers I don't like, the rest looks solid. I assume multifamily based on the rent numbers.

I agree why pay a 23% markup I. This property? Also your Capx and vacancy seem low. I would put those at least at 5% each. Also why is there an HOA fee?

The monthly net income looks solid, currently at $179 per unit. 

Hey so I am still learning just like you but I'm pretty good with numbers. I'll do my best to help but take what I say with a grain of salt. 

If I read that right, your doing 25k paid over 5 years @ 3% interest then a 25k refi after. $5700 down. 

Piti 589

RM 70

V 35

Capx 70

Pm 70

Total 834

Rent 700

-134 per month. 

Even if you increase the rent to 900 your still not hitting $100 per month which should be your minimum.  Granted you may not use a pm but ur time is worth money and if you ever want to use a pm the cost should already be factored. I know a lot of the money is going to principal but that's not going to help you get your next deal at least not for a few years, so I wouldn't bank on it. 

I wouldn't do the deal for a few reasons, 

Tenants paying below market value

You already have apprehensions toward the current tenants, and they may be bad news based on scaring other buyers off

Not enough cash flow

Keep in mind you are speculating that in 5 years the market will be at least where it is today and not tank. What if it does? 

This property may be good for some investors but it would not peak my interest. If you insist on doing it I would require the current owner either get rid of the tenants or require the tenants to pay full market value rent. Also like you said buyers are running from that place try to get a few more grand off. You hand him a check for 5700 but tell him the balloon payment will be 20k not 25k. He might really prefer the 5k now vs 5k in 5 years. Or he can wait and have nothing. Make him think but having cash in hand will help persuade. 

Again I hope this helps. I'm a newbie as well but I wanted help if I could. I do manage a few rentals for my father so I have a little experience, luckily our tenants are pretty great. 

Any updates? Did you farm any work out on the units or do it all yourself? Very impressive none the less 

I am in for a Saint Louis recommendation as well. 

Write to the Travel Channel, get on Ghost Adventures, your house will become famous, raise the rent due to people wanting to live in a haunted house they saw on TV.