All Forum Posts by: Zack Gerson

Can you apply multiple times for different LLC's owning different properties? Different bank accounts and all... but my name and info is on every application?

Brett, Be careful expecting a bank to Refi you that quickly. Many banks will ask you for seasoning (history of rent sometimes 12-18 months) I am not saying its not possible, but make sure you have gone over this with your bank before hand.  

Good luck

Hey Cody, 

Couple thoughts.

1. if you are just messing around testing your numbers it would be easier to just find one on the MLS/Redfin and call to get all the income/expenses. Much easier than contacting an owner. Run your numbers and compare them to past sales in the area. 1.4M is too high for that area so i never really base my numbers on Tax assessment.

2. If you are really interested in that specific property to purchase, contact the owner and get the income/expense (if they are even willing to sell). Run your numbers then use that compared to the comps in the area to find an offer price you are comfortable with. But for sure know the comparables. Out here in Los Angeles, a 7 cap would look like gold, but in Racine an 8 cap doesnt look so hot. 

Also, for Racine, a one bedroom would be hard to rent for $750. not sure how nice it is but thats high. So for sure know the rental incomes and what you can expect. Dont just take the owners word for it. Trust but verify. 

Hi Rebecca, I am always looking for rentals in Racine Kenosha. Love to see what you have.

Marcus A. I am actually doing this in Milwaukee and some surrounding areas. I have a multi family out there but am looking into the brrrr strategy for sfr in between larger complexes. If you don't mind, I'd love to hear more about your experiences and numbers after the refi so I know more what to expect. Feel free to PM me if you prefer that.

Great job Marcus, thanks for sharing. I am looking at doing one similar. Can you tell us what the expenses look like now that it's renting out? Is the tenant paying for all utilities?

@Jay Dewberry @Eric Munson @Ken P. Thanks for the input guys!

@Jay Dewberry Thanks Jay. Ill defiantly look into the financing. 30year would put us over that 100/door mark. The LLC I assumed was about 800/year to keep up. Thats at least how it is in CA. and the advertising, you are probably right, just figured id be safe. Really just being over careful with my numbers.

@Ken P. 

The deal is in WI. so I would not assume much appreciation. It would more just be icing on the cake. We are looking to grow this bigger. We already have 31 units and a team set in place to do the rehab and management. after this we would be rolling the money over to keep purchasing more 4+ unit places. 

The Rehab would include a porch, partial roof, simple clean up for the units, add a breaker, water heater, some facia, and a couple windows. We have a team that has already seen the place and has quoted us. This should be enough to get us up above standard. Above is some more info. 

@Jay Dewberry Expenses include water/sewer, heat, electric, repairs (lower the first year given 50K rehab), taxes, prop management, insurance, reserve, LLC, gardening/snow, even a little for advertising if needed. total =1,300/month

financing would be about 90K. 4.6% commercial for 25 years.