All Forum Posts by: Varma Adduri

Z reports is the daily sales report of the C-store that can be printed from POS (point of sale) or cash register Common scam is, the items will be rung up without actual sale. This is to show that there is more sale than there actual sales. Check the cash reconciliation report daily to see if the register is short by amount. This is one way to catch it.

3 months is little hard. Typically it's 6 months to 1 year

I looked for gas stations in NJ but the numbers didn't work out as they are full service stations here. How many pumps does it have? Any C-Store with that? If so, can you sell beer (in NJ you can't) How frequent is the inventory coming? Any new stations opening in the area? Is it close to highway? If so are there enough signs pointing to your station? Any insurance claims on the station? Is the cash flow numbers after owner operator salary? The z report for C store. They all cook up the numbers especially when they are planning to sell. Caution there 3 years tax returns (not 1. This is very important) You will have a fair idea if it is really doing 2M gallons. Inventory is the key. Go based on the fuel ordered, not fuel sold (sales can be manipulated) Good luck

About your second question:- if you are still cash flowing with 15 year loan and you are sure to hold on to the property for 15 years then it's a good idea For me, in an appreciating market, I would sell for a decent profit and do 1031 to invest in other upcoming areas. So I personally would stick with 30 years.

Cash on cash is the amount of money you make annually/ amount of money invested. Ex:- you make 5k annually after all expenses and your cash investment (down pay + some improvements + closing) is 50k then your cash on cash return is 10%

About the area, access to public transportation is the key (again, for my area) more than the schools. The HOA should be good in maintaining the property. Roads, landscaping etc. If the word is out that the community is neat, that's half the job done. There will be a lot of rental applications

The place I am from, we can only afford condos that makes some rental sense Pros 1. Less maintenance 2. Easy to rent (at least in my area) 3. Very reasonable insurance rates (25$/mo in my case) Cons 1. HOA dictates terms. Sometimes they can change rule saying they allow only 50% rentals. 2. HOA fees will be an important factor in your cash flow 3. Very limited appreciation

Congratulations. I love success stories. They are motivating

Many will buy in a personal name and then transfer over to LLC. That way the interest rates are lower and the probability of securing a loan is higher. There are certain risks though with this strategy

I don't know about 2% rule since I am not into MF investing but it's hard to even get the 1% rule for SFRs. The market is hot. I am going thru the same things. Sending multiple offers only to be either rejected or outbid. Like everyone said in this thread, I am hoping for a good deal in winter but will not stop placing offers until then