My main concerns are related to how I can acquire the property and is it a good investment. Certainly numbers need to be checked and tax returns are a good start since they will declare every possible expense on the return.
I like to check with local professionals such as RE agents to find out what the velocity of the market is and property managers to see what rental demands are. Some assessors have online systems that give sales history, tax history etc.
To me the most important questions to ask are:
Why are you selling?
What are going to do with the proceeds?
These are important in trying to find ways to structure negotiations.
Good Advice, definitely look into the VA loan...its very flexible, 0 down, you can probably qualify for that with a 500 credit score. However, i dont think you can buy a fixer upper with a VA loan, which will really hold you back from getting a good deal. They want the home in excellent condition...
Also, if you already own a home, you may need to clean up your record for a good interest rate.
John...at quick glance, expenses should run 35-40% of gross income w/o utilities...you have a utility expense of 14%+on top of that with no provision for replacement reserves or management expenses...is trash/garbage a separate expense or included w/ the taxes ?...will the tax base change upon sale...my thumbnail guess is the property is worth approx. 970k at best & maybe less if you contract management instead of managing yourself...this is based on an 8 cap...if that is the true value for your area...regards, CWal
John...value is based on the cap rate for your area divided into the NOI...cashflow is all that is important after real expense and cost of money ...as i already stated, normal expenses will range 35-40% i would opt for 40% not including any utilities... ...your expense sheet includes a utility expense of 14% with a total of almost 42%...this means there is a total of hidden expenses of 12% + ...where is it ?...regards, CWal
off the top of my head:
rent roll
tax returns or schedule E
property inspection
disclosure about upgrages changes
asbestos / lead based paint
copies of leases
My main concerns are related to how I can acquire the property and is it a good investment. Certainly numbers need to be checked and tax returns are a good start since they will declare every possible expense on the return.
I like to check with local professionals such as RE agents to find out what the velocity of the market is and property managers to see what rental demands are. Some assessors have online systems that give sales history, tax history etc.
To me the most important questions to ask are:
Why are you selling?
What are going to do with the proceeds?
These are important in trying to find ways to structure negotiations.
I would look to clean up my credit.
and then check out VA and SBA programs.
There are special program for disabled vets too.
Good Advice, definitely look into the VA loan...its very flexible, 0 down, you can probably qualify for that with a 500 credit score. However, i dont think you can buy a fixer upper with a VA loan, which will really hold you back from getting a good deal. They want the home in excellent condition...
Also, if you already own a home, you may need to clean up your record for a good interest rate.
terrible response. Come on now, Kimtd... now HOW CREATIVE IS THAT??
I was hoping for a more creative response than THAT... jeez.
Quote:
On 2007-05-16 21:07, Kimtd wrote:
How about paying your bills on time?
hey everyone,
thanks for the helpful advice.
John...at quick glance, expenses should run 35-40% of gross income w/o utilities...you have a utility expense of 14%+on top of that with no provision for replacement reserves or management expenses...is trash/garbage a separate expense or included w/ the taxes ?...will the tax base change upon sale...my thumbnail guess is the property is worth approx. 970k at best & maybe less if you contract management instead of managing yourself...this is based on an 8 cap...if that is the true value for your area...regards, CWal
John...value is based on the cap rate for your area divided into the NOI...cashflow is all that is important after real expense and cost of money ...as i already stated, normal expenses will range 35-40% i would opt for 40% not including any utilities... ...your expense sheet includes a utility expense of 14% with a total of almost 42%...this means there is a total of hidden expenses of 12% + ...where is it ?...regards, CWal