All Forum Posts by: Scott Johnson

Hey, guys and gals!

We just got a small apartment building and another rental house under contract and I'm looking to see who invests out that way!

Would love to connect!

Hey, BP!

Is there anyone here that is actively investing in Storage Facilities? I’m analyzing a smaller, 13 unit building and wanted someone with more experience to review my numbers and see if I’m on the right track:

Income

• 7 Storage Unit (8' x 7' x 31'): $895/m
• 6 Storage Units (9' x 9' x '31'): $1,800/m
• Total: $2,695

Expense

• Maint/CapEx/Vac (15%): $404/m
• Utilities: $143/m
• Insurance: $133/m
• Taxes $291/m

Debt Service

• $163,363 | 5.5% | 20 Years | $1,124/m

Cash Flow

• $600/m

Purchase Price

• $204,203

The “Improvement Tax Value/Total Tax Value” percentage is weak so the depreciation is lacking, making cash flow the preferred strategy.

My main questions are:

• Am I analyzing this effectively?
• Is 15% an appropriate Maint/CapEx/Vac?
• Is there something else I need to include?

 I started out with the wholesaling grind, @Joseph Wayne Schretzenmaier, and wouldn't change a thing. It's frustrating, annoying, and the margins are decent (not spectacular) but you'll gain a fundamental understanding of real estate investing and what's important. 

You'll also learn a ton by talking with sellers and buyers. I ended up getting my license not too long ago because I can offer cash offers and listing potential. 

Your journey is your own and your path be revealed as you take action toward your goals! 

Emotional support animals don't apply to me unless I have written documentation (a letter) stating that it's medically needed. I also call the doctor who wrote the letter to verify that it is the correct pet (color, breed, etc).

You can't charge pet fees, in North Carolina, for pets that have a medical relevance. The other dog that is not an emotional support animal would be charged normally. 

Welcome to the game, @Nick Miller! Happy to have you as a part of BP!

 This, @Nicholas Misch ^^^

 Nice, @Chad S.! What are you doing to educate yourself on it so you can execute?

Hmmmm... I'd look deeper into it before I "let it go" and lean on the CPA. Could be fine, but could end up pissing a lot of people off and getting you in trouble with the IRS, @Wilson Davis. Could just be me.

@Ashish Acharya, what IRS publication or form instruction outlines this concept? I need to read up on it since I'll be buying and immediately listing properties.

Thanks so much!

 Why not use a cash-out refi to pull out some equity and use that? Unless you have another place to live, I probably wouldn't sell your home. Up to you, though.