All Forum Posts by: William Walker

To quote the infamous philosopher Kanye: “what you think I rap for, to push a f***** Rav4?”

it gets boring reading the posts on here where everyone boasts about how they still drive a 1996 accord but have 20 rental properties. I’m in this to get money to buy things I enjoy. When I have money - maybe I buy an investment property, maybe I go on a nice vacation. Maybe I buy the 3k traeger grill knowing it is never going to provide any return. Find a balance that makes you happy. 

I'm close to purchasing a hair salon - this would be my first commercial investment. I'm familiar with residential and own a few SFH but this is new.

Purchase price 100k

Rent $1,200/month

It is one building with 3 units that do not connect. Each with its own meter and bathroom. There is a sort of HOA (I'm sure not the proper term) that is $100/month that covers outside maintenance and insurance. The unit is currently being run as a hair salon with chairs, mirrors, etc and would directly roll over to new tenant.
Liability insurance for 1 million is 200/year. 
My current wall is financing. I am cash heavy and can put 25% down no problem, I spent a long time today calling lenders and I’m having difficulty finding a commercial lender. I’d like to do 15 years with 20-25% down. 

What else do I need to be considering in the finances other than taxes?  Do the numbers look profitable. This is in Wilmington, NC in a busy area with a good amount of traffic. I confirmed rental rate with 2 separate hair stylists that confirm it’s an appropriate rate. 

Any advise appreciated. 

I'm close to purchasing a hair salon - this would be my first commercial investment. I'm familiar with residential and own a few SFH but this is new.

Purchase price 100k

Rent $1,200/month

It is one building with 3 units that do not connect. Each with its own meter and bathroom. There is a sort of HOA (I'm sure not the proper term) that is $100/month that covers outside maintenance and insurance. The unit is currently being run as a hair salon with chairs, mirrors, etc and would directly roll over to new tenant.
Liability insistence for 1 million is 200/year. 
My current wall is financing. I am cash heavy and can put 25% down no problem, I spent a long time today calling lenders and I’m having difficulty finding a commercial lender. I’d like to do 15 years with 20-25% down. 

What else do I need to be considering in the finances other than taxes?  Do the numbers look profitable. This is in Wilmington, NC in a busy area with a good amount of traffic. I confirmed rental rate with 2 separate hair stylists that confirm it’s an appropriate rate. 

Any advise appreciated. 

I wanted to do a cash out refi so I called my lender. They asked how much I wanted to take out and I said as much as possible. They asked me what I thought the house was worth and I said $250k, Zillow says 255k so about there. The lender looks at Zillow while talking to me on the phone and says yea that’s about right. I get an appraisal. Guess what exact amount my property appraised for?????  250k on the penny. Magic. 

I bought a house for 87k two years ago. Probably a good price but not amazing. County places a tax assessment at 120k. I appeal, they deny, I appeal again, they deny again, I go in front of a board and give them comps from the same neighborhood that sold the year prior, the same year, and the next calendar year. The county appraiser used a 35 year newer house with different bed/bath and sq foot in a different neighborhood as a comp and my appeal was denied. (Whole process not worth 5 minutes of my time but it was the principle!)

appraisals - where common sense doesn’t matter and the numbers are made up! 

 I think it’s a seller who’s tired of people trying to wholesale his property. OP said he found it off market and is trying to wholesale. Seller Probably had people offer a price saying they are the buyer- turns out they are whole selling and don’t have a buyer. Seller wants $500 to get rid of tire kickers and newbie whole sellers. Don’t blame him/her. 

I’ll fly to your 1 story 1,200 sq ft house and rip the siding off with a hammer and pry bar myself for 10k - save you a grand right there. 

If purchased with a traditional 30 year mortgage you would need to put 175k down.  4 bedrooms x 700/bedroom = $2,800 income per month.  Expenses on the mortgage payment alone is roughly $3,200 a month.  You lose $400 a month if you never have a single repair or any vacancy and manage it yourself for free and don’t value your time. 😬 

 You think a Great Dane is more likely to bite a neighbor kid when compared to a kid????

I have 2 kids, they’ve been bitten by kids and bitten kids more times than I can’t count. My dog has never bitten a person. 

I think this is getting in to the semantics. Of course a dog is going to do more damage when it comes to biting and more likely to be pursued for damages. In general, Great Danes are docile.  Low energy, easy to take care of. I’d base a decision on renting to an owner with dogs more on the owner and age of the dogs. 

 ?

Same could be said for a 45 lb six year old human. 

Great Danes do not need to be walked several miles a day. Actually bad for their joints. They are one of the laziest breeds out there. Actually one of the better breeds for a smaller house.

Contrary to most of the replies on this thread, bigger dog does not equal more energy and more destruction. I feel like I’m starting to sound like a pit bull owner (I’m not!!!!)