All Forum Posts by: Stephen J Davis

SF and MF are completely different. Remember 1 to 4 family is considered SF. I never use a percentage. I use the facts. Figure out the actual PITI and comparable rents to determine your actual cash flow. I don't buy property that does not have at least $300 a month cash flow. My average it over $400 per house after PITI and $200 to $300 in maintenance and vacancy. I am in TX and these are $150,000 to $220,000 ARV homes that I am buying 20 to 30% below market after purchase price, rehab and closing costs. With apartments, You use the actual P&Ls and tax returns from the last two years. There is a lot to this so make sure that you take a course on real estate investing before you proceed. A forum does not replace an actual course.

I generally try to sign a new lease with my inherited tenants as soon as possible. If they are month to month, I ask the seller to get them to sign a new lease before I close on the property. Then I go meet with them and review the lease with them after I close. This is when I set the expectations. This is very complex and detailed. Make sure that you take a course on real estate investing before you move forward.

Trust the comparable rents and don't use a rule. Plus, you should not be paying full price for any rental that you buy. Take a course on real estate investing before you move forward. Good luck.

@Mamdouh Mikhail it depends on how many units you are looking for. 10, 100 or more. Also, what city are you in?

Question: Have you generated your list of buyers? That is step one. Join a local real estate investor group and get those first. Then direct mail, foreclosure lists and tax lien lists are very valuable to generate properties. I even use a group of realtors to help me find distressed property.

I always have the seller get a 12 month lease signed with the tenant before I close. The tenant will want to do that because they always think you are going to raise the rent immediately. Then raise the rent at the end of the lease to market rent. Good luck.

This forum is great, but in the situation, I would consult an attorney and prepare for a legal challenge. Be proactive on this and don't let it blow up in your face.

@John Underwood is right. Google and try to find the part or replace the stove. Don't cheap yourself out and lose a tenant. 

@Aaron K. is right. Read the lease. I alway make it a fee and not a deposit on my leases.

Anyone 18 or over should sign the lease. Please talk to a real estate attorney about this so that you know the risks in your state. I am in TX and don't know the laws in Massachusetts but having everyone sign the lease is important in any state as I understand it.