All Forum Posts by: Sean Ploskina

I can't say where in austin but I took the Elizabeth warren model of income and made it for real estate.  50% Needs, 30% wants, 20% savings.  I just changed the savings to real estate.  This is after I saved an emergency fund and paid my credit cards.  

There numbers are very strange.  1500ish for water and gas in one section then 2600 in the other section.  Very high hours charged for maintenance.  

I would want receipts for all of these numbers.  Either way my offer would be pretty low based on their numbers

Where were you getting 10% down for a commercial loan?  Seems really low, but awesome if you got it

I use escrow only because it keeps my life simple.  I have had properties without escrow and it was annoying.  If you have a couple properties it might not be bad.  But after the first couple I would escrow them if only to keep things clean.

I assume 15% for all repairs, 10 normal and 5 for cap ex.  10% for vacancies, that way I am covered for a month per year.   8% for my manager.  We have a lot of homes from 50s and 60s and it is college and military heavy area.  

I don't know the area but 500 for vacancies, repairs and capex seems a bit tight.  Also as Bill pointed about you didn't budget for property management which will hamstring you later if you expand and need to bring one on.

Generally Pre-Offer I want information regarding current rents, extra income(washer/dryer), vacancies, condition of the units, recent updates, and expenses(including utilities).  If they are hesitant to provide information I am hesitant to make an offer.

As part of the offer I will require verification of all the information previously provided with rent rolls, copies of all leases, and tax returns for the past 2-3 years.  The tax returns are great to verify their expenses.  No one underestimates expenses to the IRS.   All of this is usually provided after the offer is accepted.  Again if they stall or fight on these requirements I walk away. 

Give Norfolk Air Heating,cooling,and plumbing a try.  I have used them for plumbing problems and had a good experience.

Welcome to game Chris.

Go look at a property today.  Do it everyday, doesn't matter what it is.  You will need the experience of just looking at options.

Be conservative with your numbers.  Take your projections and add another 10% to the expenses.  Until you really get a feel for how to analyze you will tend to be a bit rosy.

Be ready to make a mistake.  Because you will, and it will cost you money so be ready for that.

Have fun!  if it isn't fun you might as well just stick you the regular jobs!