All Forum Posts by: Shane Mcc

If you fully deprecate your property, then sell your property do you have to pay capital gains tax? 

Hi,

How does one purchase a delinquent Hud or Fannie Mae or Freddie Mac mortgage?

Thanks

@Marcus Auerbach

Mailing list? I don't have a mailing list. I'm mailing a hand written letter to a individual inquiring about a property. Please advise.

Hi,

Is there anything illegal about sending someone a letter stating you want to purchase there property? For example, if one looks at an empty or non-empty property is it illegal to send that property owner a handwritten letter stating you want to purchase there property?

Thanks 

This question is geared towards the more sophisticated investor but where is all of the smart money in real estate going? 

Buying?

Selling?

Holding?

With interest rates going up, what do you see happening?

Based on the above statement my expenses could be more than the $1972.00 I'm calculating? @Joseph Weisenbloom

Also, expenses include taxes, insurance, HOA, WSG etc...?

This is something I wasn't aware of. Thanks for help.

Isn't there an APR rate hike risk when financing commercial property? Is there anyway to limit risk on this front? @Jon Gluckman

I went on CL and did a search for this area of the city. Median rents are approx. $50.00 more per-unit. It seems to me the current owner has unusually low rental rates. I'm assuming this is something a good investor would look for in a property? This would be considered potentially "under performing"?

Yes, thanks John. I understand the above data I provided was inconclusive on many fronts. @John Cohen

I mentioned this above, how does a good investor try and limit there risk to an APR shock when it comes to commercial property? I ask because interest rates are projected to go up in the coming months/years ahead. @Jeff B.

Asking Price: $325,000

6 Units

Unit Type: 4 two bedrooms, 2 three bedrooms. Monthly gross $3945.00. Which seems low but I got off the phone with the realtor and this is what he tells me. 

Asking price: $325,000

Down payment 25%: $81,250.00

Capital Improvements: $20,000.00 (this is an arbitrary dollar amount I put in the equation)

Loan Amount: $263,750.00

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Loan Information:

Loan Amount: $263,750.00

Loan Period: (Amortization over 30 years but this is considered commercial property so I'm not sure how the loan amount would be structured?)

Interest Rate: 6.5%

Annual Taxes: $8552.00

Annual Insurance: $2500.00

Monthly Payment: $2588.07 (with insurance and taxes)

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Monthly Income:

6 Units: $3945.00 monthly gross (6 Units * 657.5 = $3945.00 monthly gross)

50% Rule: $3945.00 / 2 = $1972.00

$1972.00 - $2588.07 = $616.07 Negative cash flow

My question is, did I evaluate this property correctly? I know running the numbers this investment def. isn't a good deal but my question is did I look at this investment properly? Did I run the numbers correctly? What did I do wrong?

Thanks

@Lydia S. @Brandon Ingegneri, 

@Mark Nolan

Thanks for the warm welcome. 

Brandon, I sent you a few questions. 

I've been reading a lot the past few days and I'm looking forward to learning and conversing with people on this forum. 

Thanks for the warm reception @Linval T. and helpful url links. I appreciate the guidance so far. I look forward to learning and delving into the real estate business. 

Hi Everyone,

I bought my first piece of real estate in the summer of 2014. It was a land acquisition. 

I'm looking to connect with members that can teach my about the multi-family business, rehab and financing. I'm looking forward to meeting, talking and learning from the BP community.