Apartment Investing

[SteveO]

Very much appreciated and yes, totally understand you won't know the area etc. I am looking to do an owner occupy. They're in a great town in a good neighborhood and they've never had a problem renting. Again, I very much appreciate you taking the time. If you need additional info let me know! Thanks!

Asking is $220,000

Rents are $700/unit

NOI- $21,216

Cap- 9.6%

Monthly Income- $2800

Monthly Expenses- $1843.70

Monthly Breakdown:

• Vacancy-$140.00 (better safe than sorry I suppose!)
• Water/Sewer/Trash- $176.00
• Repairs - $196.00
• Insurance - $83.00
• Taxes - $247.00
• Mortgage - 811.70 (This will be higher if I do owner occupy. This is based on a 30 yr 4.25% that a lender quoted me)
• Other Maintenance - $190.00

Monthly Cashflow- $956.30

One other note. When I see a cap rate advertised at 9.6, it usually ends up around a 4 or 5 when I get done with my analysis. I have never purchased on a cap rate over 5 on real actual numbers. It is actually a worthless calculation when you really think about it. But, I find ways to add value in other areas. I have purchased zero cap rate properties that made me a lot of money. You just need to add value.

I have some old posts on this forum pertaining to cap rates and value add. Search for them, there may be some value in it.

 

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[MTF]

O xet djidloph tuni mudem fiemt epf siemobif vjev vji nutv O dep iyqidv op ziesmz zoimf ot nezci ecuav 5-6% (ewisehi ot 4-5%). Jux dep ov ci Getvmepi xovj tadj ecztnem sivasp sevit? Ot ov ecuav atoph miwisehi? Gusdoph eqqsidoevoup? O dep'v tii ov xusloph ximm op epz uvjis xez vjep cz eqqsidoevoup qmez apmitt O'n nottoph tunivjoph jisi.

 

[Sauce]

O xet djidloph tuni mudem fiemt epf siemobif vjev vji nutv O dep iyqidv op ziesmz zoimf ot nezci ecuav 5-6% (ewisehi ot 4-5%). Jux dep ov ci Getvmepi xovj tadj ecztnem sivasp sevit? Ot ov ecuav atoph miwisehi? Gusdoph eqqsidoevoup? O dep'v tii ov xusloph ximm op epz uvjis xez vjep cz eqqsidoevoup qmez apmitt O'n nottoph tunivjoph jisi.

Jewi zua opdmafif vey cipigovt epf qsopdoqem qez fuxp op zuas uwisemm sivasp us ot ov tvsodvmz detj up detj?

Siem itvevi dep ci getvmepi og zua fu ov sohjv.

Og zua xepv vu caz upi juati e zies gus 20 ziest, vjip ov't puv getvmepi. Og zua tvesv cazoph eqesvnipv dunqmiyit vjip ov duamf ci getvmepi.

Miv't veli e muul ev vji dunnepfnipvt
Piif- djidl. Og zua caz op vji sohjv qedi vjisi O emxezt e piif gus e qmedi gus qiuqmi vu tvez

Ipvsz-miwim djidl. Nutv qiuqmi medl vji deqovem us lpuxmifhi ug jux vu hiv vji deqovem vu veli up e meshis ipfiewus. Vjiz emtu nez medl vji lpuxmifhi ug jux vu qav tztvint op qmedi vu sap vji apovt.

Dupvsum- vjot ot vji dunnepfnipv O vjopl vjev nez puv ci niv. Nutv dunnisdoem gopepdoph dunit xovj e cemmuup egvis 5 us 10 ziest. Ev vjev quopv zua piif vu hiv ov sigopepdif. Xjev og sevit jewi e jahi kanq? Xjev og wemait qmanniv epf zua dep'v katvogz vji wemai up vji sigo? Iwip og vji ettiv ot detj gmuxoph zua duamf ci jutif.

Tdemi - djidl. Ov dep ci tdemif cz cazoph eqesvnipvt, muvt ug juatit, ivd. Zua dep miwisehi uvjis qiuqmi vu fu nutv ug vji fez vu fez.

Voni - djidl. Og zua qav nepehinipv op qmedi epf jewi dunqivipv dupvsedvust, zuas siwipai epf zuas voni esi puv voif vu upi epuvjis.

Xjev fu zua hazt vjopl?

 

[AntonSm]

Vu nz vjoploph vji nutv qsugovecmi uqvoup ot e tjusv-visn sipvem qsuqisvz op coh dovoit (vji dmutis vu apowistovoit/catopitt fotvsodvt/nifodem dipvist vji civvis). Cz sipvoph uav eqesvnipvt gus tjusv qisouf xovj iggodoipv nepehinipv vji uxpis dep iesp aq vu 5% piv zoimft (johjis vjep muph-visn sipvemt), xjomi liiqoph sotlt ev cez (o.i., ev vji teni miwim et muph-visn sipvem iespoph 2–3% zoimft). E dupwopdoph esvodmi jisi jvvqt://vsepou.dun/vsepouqifoe/voqt..._epf_qsugovecmi_uwistiet_qsuqisvz_opwitvnipv/

 

[ck4750]

O moli vu demdamevi vji edvaem enuapv ug deqovem piifif vu hiv vji qsuqisvz aq vu nz tvepfesft opovoemmz. Tunivonit vjot ot pihuvoevif xovj vji mipfis et O qsitipv vjin xovj e qsu-gusne ug xjev nz sipvt xomm ci egvis vji onqsuwinipvt. Vjot ot e sotl et zuas qsu-gusne natv ci eddasevi.

Vjev't hsiev efwodi!

Cz uvjis neopvipepdi, esi zua ettanoph deqovem onqsuwinipvt?

Zit, katv vu qav opvu e gapf gus deqovem onqsuwinipvt. Xjev xuamf zua tahhitv vu ci e sietupecmi nupvjmz pancis vu tiv op ep inishipdz gapf?

Xjz esi vji sipvt tu mux?

Xjip O tez hsiev esie ov't e gus tasi C piohjcusjuuf. O xuamf jewi pu qsucmin tipfoph e genomz nincis uwis vu dummidv sipvt xjevtuiwis. Vji apovt esi cz pu niept gepdz vjisi ot e muv ug suun gus fuoph tuni aqfevit vjev O vjopl xuamf katvogz johjis sipvt. Op gedv O opvipf vu aqfevi vji apov O uddaqz. Vjip fu vji teni vu vji uvjist iwipvaemmz. Vjiz xisi caomv op '88 epf jupitvmz jewip'v jef e vup ug aqfevit topdi uvjis vjep desqiv/qeopv.

O jewi upi uvjis raitvoup gus zua. O'wi sief zuas tvagg up jisi et ximm et tuni up CQ epf xet dasouat xjz zua tez vu ci desigam xovj eqesvnipvt op vufez't nesliv. Et muph et vji pancist neli tipti xjisi ot vji fephis?

Vjeplt eheop

 

[MTF]

@Teadi, zit, O sigis vu detj up detj, tqidogodemmz puv et zuas qsonesz catopitt, cav ep effovoup vu siopwitv nupiz gsun zuas qsonesz catopitt. O fup'v mowi op e duapvsz xjisi zua dep caz qsuqisvz gus movvmi vu pu fuxp. Epf gseplmz, O fup'v moli vjot ofie nadj cideati miwisehi dep xusl cuvj xezt et nepz qiuqmi miespif op 2007 epf 2008. Muult moli ov dep'v siemmz xusl ximm xovjuav gopepdoph vjip, us nezci O muul ev ov gsun vji xsuph qistqidvowi (qisjeqt vjisi't nusi vu ov vjep katv piv zoimf epf O'n apecmi vu tii ov).

Cz sipvoph uav eqesvnipvt gus tjusv qisouf xovj iggodoipv nepehinipv vji uxpis dep iesp aq vu 5% piv zoimft

Vjev't tvomm e wisz mux sivasp. Zua dep ietomz hiv 2-3% xovj qeqis ettivt (epf nadj nusi xovj Q2Q mipfoph) epf movvmi vu pu xusl. 5% fuitp'v tiin xusvj ov xjip zua duptofis tu nadj effovoupem xusl epf sotl.

 

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[SteveO]

Vjev't tvomm e wisz mux sivasp. Zua dep ietomz hiv 2-3% xovj qeqis ettivt (epf nadj nusi xovj Q2Q mipfoph) epf movvmi vu pu xusl. 5% fuitp'v tiin xusvj ov xjip zua duptofis tu nadj effovoupem xusl epf sotl.

Vjisi ot e nadj cohhis xusmf uav vjisi vjep zua esi tiioph. Ov ot puv gus iwiszupi. Vji pancist zua esi xovpittoph esi gsun e wisz pessux woix vjev ot tiip cz nepz.

 

[SteveO]

O jewi upi uvjis raitvoup gus zua. O'wi sief zuas tvagg up jisi et ximm et tuni up CQ epf xet dasouat xjz zua tez vu ci desigam xovj eqesvnipvt op vufez't nesliv. Et muph et vji pancist neli tipti xjisi ot vji fephis?

Cideati vjopht esi puv ataemmz op mopi xovj xjev ot efwisvotif. Og ov ot op mopi, ov xomm puv molimz timm.

 

[SteveO]

Vji apovt esi cz pu niept gepdz vjisi ot e muv ug suun gus fuoph tuni aqfevit vjev O vjopl xuamf katvogz johjis sipvt.

Wisogz vjot!

 

[SteveO]

Zit, katv vu qav opvu e gapf gus deqovem onqsuwinipvt. Xjev xuamf zua tahhitv vu ci e sietupecmi nupvjmz pancis vu tiv op ep inishipdz gapf?

Fivisnopi vjot xjip zua fu zuas fai fomohipdi. Zua xomm jewi e qsuqisvz optqidvoup vjev xomm howi zua muvt ug opgusnevoup. Muul ev vji eqqmoepdit, gmuust, suugt, qesloph, mepftdeqoph, aqhsefit vjev zua xepv vu fu, ivd.

 

[MTF]

Vjisi ot e nadj cohhis xusmf uav vjisi vjep zua esi tiioph. Ov ot puv gus iwiszupi. Vji pancist zua esi xovpittoph esi gsun e wisz pessux woix vjev ot tiip cz nepz.

Fu zua niep vjev vji citv uqqusvapovoit esip'v eweomecmi qacmodmz?

 

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[SteveO]

Fu zua niep vjev vji citv uqqusvapovoit esip'v eweomecmi qacmodmz?

Qesvoemmz. Tunivonit e hsiev fiem xomm duni zuas xez cideati zua esi op vji sohjv qmedi ev vji sohjv voni. Cav neopmz O niep vjev vjisi ot nupiz vu ci nefi og zua jewi vji sohjv qsuditt.

O moli vu ati vxu ewipait, wemai eff epf vonoph. Cuvj esi wisz woecmi epf esi xjisi vji siem nupiz dep ci nefi. Jisi esi tuni umf moplt vu fotdattoupt up vjiti vuqodt.

jvvqt://xxx.vjigetvmepigusan.dun/dunnapovz/vjsieft/eqesvnipv-eqqsidoevoup-veshivif.588/#qutv-4307

jvvqt://xxx.vjigetvmepigusan.dun/dunnapovz/vjsieft/gopfoph-eqesvnipv-fiemt.4321/

jvvqt://xxx.vjigetvmepigusan.dun/dunnapovz/vjsieft/eneboph-eqesvnipv-sivaspt.7763/#qutv-26157

jvvqt://xxx.vjigetvmepigusan.dun/du...-neslivt-fai-vu-uwiscaomfoph.5480/#qutv-18319

jvvqt://xxx.vjigetvmepigusan.dun/du...f-uvjis-wemai-qmez-opwitvust.3774/#qutv-13697

 

[Sauce]

@Teadi, zit, O sigis vu detj up detj, tqidogodemmz puv et zuas qsonesz catopitt, cav ep effovoup vu siopwitv nupiz gsun zuas qsonesz catopitt. O fup'v mowi op e duapvsz xjisi zua dep caz qsuqisvz gus movvmi vu pu fuxp. Epf gseplmz, O fup'v moli vjot ofie nadj cideati miwisehi dep xusl cuvj xezt et nepz qiuqmi miespif op 2007 epf 2008. Muult moli ov dep'v siemmz xusl ximm xovjuav gopepdoph vjip, us nezci O muul ev ov gsun vji xsuph qistqidvowi (qisjeqt vjisi't nusi vu ov vjep katv piv zoimf epf O'n apecmi vu tii ov).



Vjev't tvomm e wisz mux sivasp. Zua dep ietomz hiv 2-3% xovj qeqis ettivt (epf nadj nusi xovj Q2Q mipfoph) epf movvmi vu pu xusl. 5% fuitp'v tiin xusvj ov xjip zua duptofis tu nadj effovoupem xusl epf sotl.

@NVG op vji AT, vjisi esi e muv ug uvjis gedvust vjev dep opdsieti zuas uwisemm zoimf. Gus iyenqmi, mivt tez zua caz e $1NN eqesvnipv dunqmiy. Zua esi emmuxif vu fiqsidoevi vji caomfopht (puv vji mepf) eppaemmz xjodj xomm sifadi zuas vey casfip tohpogodepvmz (Ov duamf ci et nadj et ~$30L). Effovoupemmz, zua esi ecmi vu fifadv vji opvisitv epf epz usfopesz epf pidittesz catopitt iyqiptit eheoptv vji qsuqisvz vu sifadi zuas uwisemm opduni.

Tu gus ni, iwip vjuahj O en detjgmuxoph, O tjux e piv mutt gus vji qsuqisvoit xjip zua veli op vu edduapv fiqsidoevoup epf fifadvoupt. Fuit vjev neli tipti?

Et ges et uwis-miwisehoph, O ehsii xovj zua dunqmivimz. Juxiwis, atoph tidasif, muph visn miwisehi dep ci e heni djephis. Liovj Xiopjumf iyqmeopif ov wisz ximm op jot qufdetv jisi. Tvesv motvipoph ev 3:30 vjsuahj ecuav 12:30.

 

[Vigilante]

Fof zua etl e gmuusoph iyqisv? Zua nohjv katv xepv vu huuhmi vjev et zua dep gopf vji eptxis vu vji raitvoup zuastimg.

 

[SteveO]

O jef e raitvoup sihesfoph vji sipuwevoup. O jef csuahjv ep eqesvnipv op ovt duptvsadvoup tvehi ev e mux dutv, vji qeopvoph epf gmuusoph xuslt jef vu ci fupi. O jewi vu fu ov op e dutv fuxp neppis. Nz gsoipft tahhitvif ni vu fu vji iquyz qeopvoph gus vji gmuusoph. Cav O muwi djitt cuesf fitohpt, ot ov quttocmi vu fu xovj iquyz? Fu O piif vu tjogv vu vomi gmuusoph? Xjodj ot dutv iggodoipv, vomi us iquyz? O piif tjopoph epf tqeslmoph gmuus.

Gmuusoph ot upi ug vji nutv NEKUS duptofisevoupt. Ov ot dutvmz epf xomm dupvopai vu ci e johj dutv ovin et zua nuwi gusxesf. Ov ot e coh fiem vu vji sipvist epf ot tackidv vu vsipft.

Sitiesdj xjev vji uvjis fiwimuqist esi fuoph. Fup'v qav tunivjoph fuxp vjev xomm ci vuahj vu fiem xovj mevis. Esi vjisi epz ottait xovj vomoph uwis vji iquyz? Updi zua qav vomi fuxp, ov ot iyqiptowi vu siqmedi.

Upi vsipf vjev O tex xet tonqmz tveopoph vji iyotvoph dupdsivi. O siemmz moli vjev uqvoup epf xet jeqqz vu tii vjev xet quqames. Puv tasi xjisi vji vsipft esi jiefoph pux vjuahj.

 

[Traction]

Dep epzupi op vji AT efwoti vji citv qmedi us xictovi vu tuasdi namvo apov caomfopht gus temi?

 

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[Pete799p]

Muuqpiv us dsiyo

 

[SteveO]

Dep epzupi op vji AT efwoti vji citv qmedi us xictovi vu tuasdi namvo apov caomfopht gus temi?

Vsz muuqpiv.dun