All Forum Posts by: Wade Sikkink

Yes, you can ask them to switch to your lease.  If they refuse, then they will remain bound by the terms of the current lease, but most people will probably willingly sign your lease.

We bought a fully occupied 14 plex and 13 of the tenants happily signed the new lease.  Only 1 refused and we kicked him out when his current lease was up.

Good luck.

Cap rate is NOI divided by purchase price. Without knowing the exact NOI you can't calculate it. however, if you use the 50% rule then the NOI is $15,600, so at an 8 cap the price would be $195k.

Why don't you just ask the seller his asking price?  That seems to be a lot easier.

You should be able to get a revolving line of credit for your LLC that is secured by real estate that you own. We've done this before. It's not exactly the same as a HELOC, but the net result is the same. In addition to putting up equity in the property owned by the LLC, you will most likely have to also provide a personal guarantee for the credit line. No bank will loan to a small LLC without making the members also personally guarantee the loan.

Good luck.

Completely agree with the comments above on the importance of buying right. It's absolutely true that you make your money going in. If you buy right, everything else takes care of itself. That means you can't buy properties off the MLS or other "retail" channels. You have to find off market properties. I recently wrote a blog post about an off market SFR we just bought. It was a turnkey, so no BRRR, but buying right was still important to make the cash flow work so well.

[Moderator's Note:  Removed link from post ... next time, will remove entire post].

There are some good, free options just coming on the market for landlords in your situation.  PM me and I can share the details with you.

For a building built in 1980 you have to include some maintenance expense.  The seller has to have spent money on maintenance in the last few years.  If he hasn't disclosed any maintenance expense, then he's withholding information.

I think the 50% rule works really well in these cases.  Assume you will spend 50% of the income on expenses and have 50% remaining for debt service.  If the numbers work to give you an acceptable cash flow at that point then you are probably looking at a good deal.  My experience with multi's is that the 50% rule is pretty darn close to where things actually end up.

Good luck.

I tried TenantCloud and found it's accounting function to be terrible.  There are other better options on the accounting side.

Check out my blog post for how this great off market opportunity came together.

https://www.biggerpockets.com/blogs/9539/56732-i-b...

Includes tips on how to find off market deals.

A new option, alcalo, was just added to this list.

Save time and money by simplifying your bookkeeping.  No more entering transactions manually.  alcalo automates the transaction entry and report generation giving you time back to spend with your family or look for your next deal.

www.alcalo.com

Sign up for alcalo today and simplify your bookkeeping and reporting.