All Forum Posts by: Tchaka Owen

@Adam Kerr - if he knows how to calculate Cap Rate, he should know about all the important components. What matters most is that you decide what it's worth to you go from there. Show him your calculations. If he has different numbers, ask to see how he got his numbers. If he skipped anything, have him add it. Just because he chooses to do work and pay himself with the saved amount doesn't mean every other investor will do so. Time for you to be the teacher!

@Jorge Bustamante - I believe you're "converting", not "reconverting" to a duplex. IMO, option #2 sounds the best. IMO, baseboard heat sucks compared with gas and I believe is more expensive. Plus it will cost you more to install. Build it into their rents. Yes to adding a water meter and having each tenant pay their usage. If you want an hour long shower, no problem...landlord's not paying.  

Hi @Cara Kennedy! A few comments:

1. There's no good reason that you can give for selecting a 20-year loan. You're welcome to try me. :-)

Please change it to a 30-year. As Frank mentioned above, it will improve your numbers (monthly cash flow goes to positive $247.

2. Although your percentages are solid, consider massaging them a bit. Eg, vacancy and capex down to 7%, mgmt. down to 8% and misc. down to 5%. 

3. Insurance doesn't appear to be listed as an expense, that needs to be added. 

Overall, your bottom line will be similar; the numbers might be a tad 'tighter'. Good luck! 

For clarification, is that $84,983 of rehab? Or is that for rehab and more?

Yes, most renters are looking for unfurnished, however you said short-term. I would argue that most short-term renters want furnished. No one with a month (or few months) lease brings furniture.

@Courtney A Hall - any reason you didn't select a Cleveland based firm for this? 

This is going to sound harsh, however you need to hear it: if you're not getting anything that you want, apparently don't have proof that you own the place yet you're making payments, who is at fault?

@Mark Whittaker - as long as your heart is beating, it's not too late. If you're reading this, that's good news!

@Robert Hernandez - paint will take one day. 

Are you leaving everything up to the PM? If I were as nervous as you, I wouldn't. I'd call painters myself and meet them at the unit. Get a price quote and time for completion, then select. Don't leave that to the PM. S/he has things on his/her plate and something this simple can be handled by you. Plus you should pay the PM for doing that extra work. Once you know when the job will be completed, you can arrange to take pics and have it on the market for rent immediately. Are you sure all it needs is paint?

@Robert C. - if you're going to do short term rentals, you must furnish. Leaving aside the wear and tear argument, how many short term renters carry furniture with them? 

Lots of companies out your way, talk to their HR departments and see if they have employees coming in for short term. You're right by Dulles so perhaps a few airline folk would be interested in a crash pad type of situation.