All Forum Posts by: Victoria S.

  Why are you trying to get out of real estate? 

My husband will be claiming this...he quit his job earlier this year. I am a high income earner. 

How many of you guys have claimed real estate professional status? Any suggestions or advice? 

He used 2 different approaches. The income based approach came out 30k higher than our purchase price. If you take the median of sales comparable approach and income based approach, we are paying exactly that! That’s why we are always confused!. 

Any leads on a great accountant? 

TIA! 

It is a 4 plex. We are buying purely for cash flow. The rents are great as is with CoC of 13%...and have room to go up on the rents.

Thanks Mike! I feel as if the numbers are good on the property however it makes me nervous that the appraisal is so low. You always hear, never pay higher than the appraisal value (at least in residential properties). 

We are under contract for a 4plex. The cash on cash comes out at 13%, taking into account vacancies, maintenance, HOA ect (I used very conservative numbers). The appraisal came back at 20k lower than the purchase price. The appraiser had a hard time finding sale sales comparables because only 2, 4 plexes sold within the last year in the area. so he did a sales comparable approach (which came out lower than the purchase price) and an income comparable approach (which came out 30k higher than purchase price). If you take the median of the 2 approaches, this is what we offered. If we pay 20k out of pocket the cash on cash goes down to 12%. The seller has pretty much said that he has cash buyers if we back out and will not go down on price. Has anyone ever run across this? If so, how would you handle this?

We are under contract for a 4plex. The cash on cash comes out at 13%, taking into account vacancies, maintenance, HOA ect (I used very conservative numbers). The appraisal came back at 20k lower than the purchase price. The appraiser had a hard time finding sale sales comparables because only 2, 4 plexes sold within the last year in the area. so he did a sales comparable approach (which came out lower than the purchase price) and an income comparable approach (which came out 30k higher than purchase price). If you take the median of the 2 approaches, this is what we offered. If we pay 20k out of pocket the cash on cash goes down to 12%. The seller has pretty much said that he has cash buyers if we back out and will not go down on price. Has anyone ever run across this? If so, how would you handle this?

Thanks Steve...I am new to rentals in KC. I am under contract for a 4plex right now. And no I def don’t want to be a slumlord. better to fix as you go!