All Forum Posts by: Shaye Mora

In today's markets, do you find yourself still shooting for the 2% rule? Do you focus on a 5, 7, or even a 10% cap after all expenses? Do you focus on $200 a door? 

As investors, what deals/numbers are striking you to eagerly pursue a deal? 

What numbers turn you away from a property?

I understand all markets are different, but I would like to see what today's investors shoot for! Please provide your goal-driven number as well as the market those numbers apply to!

Businesses that I go to are affected but not myself nor my properties. Need help with anything?

@John Underwood Electric is in all tenant's name. One furnace & one water heater operate all three units. 

How would you go about this situation on getting their names on the utility bills? Install tankless water heaters in the other two units & cap/set the water heater to the biggest unit? Install separate gas meters? Install separate water meters?

Appreciate all feedback!

My godfather owns a tri-plex that he is looking to sell to me for a price of $65,000. The property needs roughly $15,000 in work, bringing the total all-in number to $80,000. The property is in a D class area and the tenants will not be the best, but it seems that long-term tenants find their way to his property. 

Total Monthly Income: $1,500

Mortgage, Taxes, Insurance: $540

Utilities (12mo avg.): $330

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Gross Income: $630 / Month (Not Including: Vacancy, Maintenance, or Management/CapEx)

Is this a property worth investing in?  

Is it worth dealing with horrible tenants in a bad neighborhood for the cash flow? 

Is it worth investing the money to split HVAC units in 2 units and increase cash flow?

Respectfully,

Shaye Mora 

This is a saying I see a lot on BP, "This is a business, not a charity". 

Why lower the rent, when you can raise it? Turnover is expect in this venture. Long-term tenants are ideally, but never bank on it. Just like property appreciation. 

I charge a pet monthly fee for my units. If you elaborate thoroughly why you charge the rent, most will understand. We charge a pet fee to cover any damages from odor, hair, stains, etc.  

 Joe,

What company are you using for this cheap "appliance repair" program?

With Slow-Pitch Softball now starting up, Wednesday nights are occupied for me. Hope to make next month's meetup - depending on the day. 

The percentages definitely vary between markets and condition of the property. I still run 10/10/10% for my properties. My logic behind this is, if I can stay above a 4.5-5% cap with a 10/10/10 it's just extra icing on the cake for the duration of the hold. 

I would like to hear how others estimate their percentages.. Elaborate on how you come up with a certain percentage for each expense.  

Tyler - Message me personally! I believe I already gave you the lender that has an amazing in-house loan. 3% down and NO PMI up to 4-units

Tyler - 

A $25k home that doesn't need any repairs or remodeling sounds like a solid deal. Just make sure your numbers are all correct. They seem low from my prospective. I'll break them down so we both can see how I came up with my estimated numbers. 

Expenses: Mortgage/Loan, Property Taxes, Homeowners Insurance, Utilities, Vacancy, Property Management, Maintenance, & Management 

Income: Rental Income

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Expenses:

Loan (for 18mo) : $833.33 

Loan (after 18mo): $0

Property Taxes (Peoria Avg.): $200

Homeowners Insurance: $75

Utilities (Tenant Paid): $0

Vacancy (10%): $65

Management (5%): $33

Maintenance (10%): $65

Cap Ex (10%): $65

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GROSS INCOME: 650*12 = $7,800

ANNUAL EXPENSE: 503*12= $6,036

YEARLY REVENUE: $1,764

This is what I came up with. Others use different calculators and different strategies for their investment strategies.