All Forum Posts by: Zachary Ware
Zachary Ware has started 6 posts and replied 399 times.
Post: Back and forth on whether to raise rent
- Posts 405
- Votes 455
I agree with many others here. Once you purchase the property bring rent to market but after steadily and consistently raise rents (as long as market rent is growing in your property area). This can avoid the loss of good tenants.
Post: What is the best way to find off market properties? Atlanta,San Antonio, N. Carolina?
- Posts 405
- Votes 455
Hey Ann,
You should check out some of the BP-recommended lenders in these areas. They are investor friendly and will likely be trying to source these 3-10 unit properties. As others have previously said, this range of units is too big and too small for many. Reach out to some local investors as well. I would also recommend looking at some of the recommended DSCR Lenders as well. Sounds like you could be approved for more than $900k.
Post: Utilities in whose name?
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- Votes 455
I definitely recommend having the tenants put utilities in their name if possible. This way the bill does not become your responsibility if they do not pay.
Post: Rentometer & Other Sources
- Posts 405
- Votes 455
Quote from @Michael Smythe:
If you just trust a computer program, you're trusting your investments to a coder/stranger you don't know.
You should really take some time to learn how to research comparables and do your own analysis.
It's actually not that hard once, you learn it:)
How would you suggest learning this if you were just starting out?
Post: What Would You Do Sell? Reif? Wait?
- Posts 405
- Votes 455
I do not see near as many purchases happening at the moment but do think they will pick up. At the moment a lot of primary homeowners are holding on to their properties because of the cost to move. If we see rates stabilize, you will see more people start to move because of life. I think there will be a lot of opportunities but why sell now just to wait? I would hold on to the CF property until you start to see more opportunities come into the market and then make the sale.
Post: Underwriting Excel Template
- Posts 405
- Votes 455
Quote from @Ryan Hogan:
Chris Jackson has a great MF UW analyzer (https://www.themultifamilyanalyzer.com/vsl1591202863311)
Michael Blank has his popular SDA (Syndicated Deal Analyzer) (https://themichaelblank.com/syndicated-deal-analyzer/)
James Eng has a simple yet effective 1-pager and for beginners good instructional YouTube channel to go along with it (https://www.youtube.com/playlist?list=PLHyWiX5X1UR-aFo0-JzE45tS6kLt3_WOO)
If you want to get into the weeds and build your own institutional level underwriting model starting from a blank excel file, Justin Kivel has some great step-by-step courses on Udemy (https://www.udemy.com/user/justinkivel/). He also gets into advanced topics such as different waterfall structures / catchups / clawbacks.
Some others:
Rob Beardsley (https://lonestarcapgroup.ac-page.com/model-giveaway)
David Toupin (https://www.obsidiancapitalco.com/dealanalyzer)
Additional training programs:
Adventures in CRE (https://www.adventuresincre.com/)
There’s a bunch more out there. Take a look and see which might be best suited for your needs and, in my opinion, after you’ve found it just focus on that one and use it over and over and over again. If you try and flip back and forth between models, you’ll frustrate yourself and be less effective. You can always add features later.
Regardless of what type of analysis you’re making (back of the napkin or full blown UW) always double and triple check your 1) exit cap; 2) rent growth; 3) property tax reassessment.
Hope this helps!
I have to second the courses from Justin Kivel. Some great stuff in there.
Post: House hacking at 22 - What I regret...
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- Votes 455
Great experience the share, thank you! I think the takeaways you brought up are something for everyone to look out for. Communication with tenants has been a huge part of my own tenant management.
Post: Federal judge rules in favor of non-owner occupied short term rentals in Austin
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I think it is a strong win for STRs and the precedent will be picked up in other cities as well.
Post: Writing Purchase agreement in PDF format
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- Votes 455
Write it on a Word Doc and convert to a PDF. Although, you should be able to find templates for a purchase agreement and you can then modify it to fit your deal. as far as PDF software go, Adobe is very good.
Post: Leveraging investment property equity in a Single Family Home
- Posts 405
- Votes 455
Most lenders will not go higher than 70%-75% on a cash-out. If you want to pull out equity while keeping the property you should look into getting a HELOC.