All Forum Posts by: Steven Andrews

Thanks everyone for the valuable input. Gives me a lot to chew on. The consensus seems to be that it's easier to raise rents than getting tenants to start paying the utilities. I appreciate the feedback!

No. Property B is currently at market rent and owner pays utilities. Utilities are not included in the rent making the rent above market.

Looking at a couple of different possible multifamily properties to buy and two of the properties I'm interested in have me wondering which is best. Property A has tenants paying utilities but the rents are well under market rate. Property B has market rate rents but the current owner is paying utilities instead of the tenants (though the units are on separate meters) .

All other things being equal, which is the better property? Is it harder to raise rents or make tenants pay for utilities?

Thanks,

Steven

What %s do you use when evaluating multifamily properties? A Bigger Pockets webcast suggestion for single family homes goes something like this:

5% for expenses
5% vacancy
6% capital expenses
10% prop manager

When it comes to multifamily, do you use the same %s? Or do you adjust them. If you do adjust, what %s do you typically use?

Thanks,

Steven

Looking at purchasing/financing a couple of STR vacation rental properties. Only issue is debt to income ratio is getting high due to primary home and financed rental property ownership. Does anyone know of good lenders who finance more based on the expected income generated from new rentals as opposed to the added debt it will bring?

Thanks!
Steven

Thanks @Kevin Romines

Thanks @Kevin Romines for the input. This is a non-warrantable vacation rental situation. Lender doesn't need to be local, just needs to be able to finance purchase of 3-5 studio condos.

I know studio or efficiency condos typically are cash purchases on their own. But I wondered if anyone here knows any lenders that would do financing on them, especially if a few units are purchased at the same time.

Thanks,

Steven

@Dave Foster and @Michael Skoczylas you guys rock. I learned more from this thread than a handful of web sites I googled. Thanks for sharing your knowledge and expertise. Promise not to make anyone do a 1031 in 20 minutes! Maybe 21 just to not piss you off. :)

Thanks guys for the help. This makes it much more easy to understand. I was making it more complicated than it needed to be. @Dave Foster @Michael Skoczylas

A couple more questions...

1. What's the typical timeframe to set up a 1031 exchange? Does it need to be done prior to listing for sale or can it be after the relinquished property goes on the MLS? Or just any time before it closes?

2. Can there be any extension of the 45/180 day timelines or are those set in stone? If you don't meet the deadline do you just get the net proceeds like normal from the QI and pay taxes as you otherwise would have?

3. Does a representative of the QI actually have to attend the closing or just be involved in the paperwork?

4. What's the typical cost of hiring a QI to handle a 1031?

5. I think I understand this right... you can purchase multiple properties with the funds as long as all properties are purchased within the deadlines?

Thanks again for the assistance in explaining this. Hopefully these very helpful replies with assist others too.

Yours,

Steven