All Forum Posts by: Gaspare U.

Yes, from what the vets here are saying 20-23%. Of course this just a guide. 

I'm looking at this mixed use that seems interesting but to be honest I never needed to get a commercial loan before. Did a 1031 and bought a retail strip for cash and a small loan on a non-owner occupied 2 Fam home. Can people PLEASE chime in and include some places to call or a specific website (don't say chase.com). Also, what can I expect on  this type of loan? (Downpayment, Term, Rates).

I'm new to BP but have been trying to be an asset to the community. Replying to questions and offering my knowledge through experience. I really hope the community can help out and give me a few leads to begin my research.

Thanks again in advance!

Gaspare

what percentage of rent is allocated to: Vac, Maint, CapEx?

I didn't see the 17k for repairs (perhaps I missed it). Also are utilities all separate and the tenants responsibility??And yes as the previous poster wrote... use 20-23% for Vac, Main, CapEx

You should look to have a 20-23% cost on Vacancy, Maint and CapEx.

I grew up in a under/over and it sucks. You hear noise. It’s as simple as that. The only apartment that was quiet was a friend who was in an apartment building in Manhattan, it had poured concrete. 

Noise is a big issue and with them larger apartments you will only attract a larger family on the 2nd floor. An elder couple won’t climb the stairs, a young professional couple won’t pay for that extra bedroom.

So yes, it’s a bit difficult.  

Not sure about the taxes, but I will say a lot of veterans here seem to use a 20-23% fee for Vacancy, Maintenance and CapEx.

Regarding being near a college, here are some things to consider:

1. Someone drops out and leaves during the middle of a semester. May be tough to rent.

2. May have high turnover, and with that turnover you may need to paint, clean, replace curtains etc each year.

3. Repairs, repairs, repairs. Hopefully you don’t unknowingly get a fraternity in there. 

I would keep tabs on what comes off the top. Their "charges" may eat into a lot of the profit to leave you guys splitting 5k in net profit. 

Also who is DOING the rehab? Are you expected to be a contractor and put the sub the work out?

There must be something more to the story. I would re-read the fine print, perhaps bring it to a lawyer. Also speak with people in the program or look for more reviews/complaints online.

@Seth Levey thanks for the explanation!