All Forum Posts by: Travis Fitzwater

Well, some people obviously get burned by PMs. I'm sorry if you had to deal with that. I just think it's worth my time to find a good management company, which I do believe is possible. Then, I will have time to go get more deals. It's logical. I'd rather do that and get a bad PM every 10 deals (which if you screen and interview well enough this shouldn't be that big an issue) than to work my tail off for 2 deals that I have to landlord myself. That's ludicrous.

Thanks so much for all the input. After putting together all the numbers, this doesn't really work out well, plus it's a little far away for one of my first deals. But, man, I am so ready to get started with this. I've read my heart out for the last couple months, I've studied as hard as I can and I'm ready to start "doing". That's most important, right?

Also, I feel like if I can screen the right management company in the future, I won't need that much experience landlording. I don't ever want to be a landlord. So, I disagree with the idea that I need business experience, of which I have a little, and that I need time to landlord. I'm not falling into that trap for the rest of my life.

Thanks everyone for you input again!

All right, I need some help.

I have the opportunity to bid on a property that has been reduced on price about 17.6%. It has been on the market since December. It is a 24 unit apartment complex with a contract with HUD until 2018 for 100% rent payments each month with another $48/unit going for utilities. The complex was built in 1982. It is in a community with 88% occupancy of housing and around 2500 residents. In my estimation, the occupancy has been between 80-95% for the last couple years. The owner may consider owner financing up to 30% so that I could get a loan for the rest. The monthly rents are $325+48 (util.) per unit. An allowable 5% increase in rents is allowed per year. The cap rate is around 8%. It seems like a great deal. Selling price is negotiable at $700k. There is a property manager. Last years NOI was, I believe, around $53k. The expenses round out to around $49k. The Gross Income was about $99k. Someone please let me know if there's something wrong with this deal. I also live at least 3 hours away from this property but it seems like such a great deal. It's owned by an investor who wants to go bigger, and I don't think he lives in the area, I believe his property manager takes care of everything.

I really want to get into investments, and I want to get started. I feel like I've read as much as I can.

Thanks!

Travis

All right, I need some help.

I have the opportunity to bid on a property that has been reduced on price about 17.6%. It has been on the market since December. It is a 24 unit apartment complex with a contract with HUD until 2018 for 100% rent payments each month with another $48/unit going for utilities. The complex was built in 1982. It is in a community with 88% occupancy of housing and around 2500 residents. In my estimation, the occupancy has been between 80-95% for the last couple years. The owner may consider owner financing up to 30% so that I could get a loan for the rest. The monthly rents are $325+48 (util.) per unit. An allowable 5% increase in rents is allowed per year. The cap rate is around 8%. It seems like a great deal. Selling price is negotiable at $700k. There is a property manager. Last years NOI was, I believe, around $53k. The expenses round out to around $49k. The Gross Income was about $99k. Someone please let me know if there's something wrong with this deal. I also live at least 3 hours away from this property but it seems like such a great deal. It's owned by an investor who wants to go bigger, and I don't think he lives in the area, I believe his property manager takes care of everything.

I really want to get into investments, and I want to get started. I feel like I've read as much as I can.

Thanks!

Travis