All Forum Posts by: William S.

@Nicholas W.

See Image. Hopefully it's not blurry

I thought I'd provide some friendly feedback about the calculators on here. I love using them, but one thing that bugs me is that I am required to put % of rent into the expenses field (maintenance, vacancy, etc).

I calculate fixed expenses. The only % I use is for the % my PM charges me per month.

Any plans to add this feature?

I've started building my own spreadsheets, but don't trust them and would rather use the calculators on here.

Thanks!

After the refinance on potential BRRRR properties they tend to leave $0-$25/m of cash flow for a couple of reasons.

1. Higher mortgage payment 

2. Long term CapEx: I calculate $180-$200/m per unit and that's if everything got replaced during the rehab. This was calculated over a 30 year period (life of loan).

3. Property Management 

To realize more cash flow, it seems it'd be best to sell in 5-15 years before CapEx becomes an issue. Is anyone practicing this strategy?

It seems you could acquire several rentals, hold for 5-10 years, sell some, and use the gain to payoff the mortgages on a few.

@Taylor Chiu

I typically get $150-$180/m per unit, but then you have to take into account the overall structure too (roof, concrete, garages, etc). $700/m low end of the budget total. 

Now, you could always hold for several years and sell before those issues arise too.

@Taylor Chiu

If you break down the replacement cost of each major item and their lifespan I think you'll be surprised how expensive it gets. These are real costs. In the real world prices are not dictated by your income. Even if things are new, and you plan to hold long term you still need to maintain the property. Everything eventually breaks down.

@Rob Myers

In my opinion the rest are way too low for anything to work. Property taxes are not being passed along in rent pricing.

@Todd Dexheimer

Can you send me that post?

@Todd Dexheimer

I looked up the taxes. They are correct. $800/m is the current rent. I am missing water/trash.

Such a low rent price for such a high level of tax.

@Michael Henry

Thanks for responding. 

Maintenance for me means repair calls/make ready stuff, not major items.

Landscaping is meant for lawn mowing / snow removal. I haven't found a good local monthly budget for this.

CapEx I am calculating as a monthly amount to set aside for the major items, instead of having a set amount of reserves upfront. I always plan have X$ upfront in case of an unforeseen emergency. However, even if everything is new things eventually wear down and need to be replaced. This is a high cost in order to maintain the property. If you hold it's expensive or you just milk it, not fix anything and sell (not interested in that).

If I were to pursue a mult-family in this area I would need $200/m per door (leveraged). I agree with you on buying some not retail but distressed. I'd rather do the repair work upfront and buy something at a discount. Keeps the mortgage lower.

My numbers are very conservative, too conservative I think as everything comes back terrible. My vacancy seems off. How do you calculate vacancy for a multifamily? It would be rare if all 4-units went vacant at the same time.

Overall this deal to me seems such low rent for such a high level of taxes...

If possible I'd be interested in seeing the numbers you ran for the 4-plex BRRRR. Perhaps that would help me with my numbers.

@Account Closed

Yes, water as well. The expenses are so high when you add everything up...