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November 6, 2007 at 10:09 PM #10835November 6, 2007 at 11:10 PM #96538
NotCranky
Participant“must drive by property before calling for additional information.”
This comment strikes me as odd. I think, why wouldn’t they want to discuss the property with you? What if you are from out of the area?
I searched craig’s list for Atlanta rentals and from that it appears that you are correct, they should be around $600 or better. So maybe the seller actually meant “net”? In that case I would have serious concerns about the building or the area because deals like that don’t linger,if they come up at all. Of course it says don’t call for additional information until you drive by! Some questions you might ask if you did call are, what are the rents ,are there are any “red flags” you should now about the building. Specifically ask about any structural, title or code enforcement issues. Is it for some reason expensive to insure?
If it is a scam deal they wont want to talk with you much or they will say things to make you very worried….like they don’t want an escrow or something like that. If things seem too good to be true they probably are.
November 6, 2007 at 11:10 PM #96599Participant“must drive by property before calling for additional information.”
This comment strikes me as odd. I think, why wouldn’t they want to discuss the property with you? What if you are from out of the area?
I searched craig’s list for Atlanta rentals and from that it appears that you are correct, they should be around $600 or better. So maybe the seller actually meant “net”? In that case I would have serious concerns about the building or the area because deals like that don’t linger,if they come up at all. Of course it says don’t call for additional information until you drive by! Some questions you might ask if you did call are, what are the rents ,are there are any “red flags” you should now about the building. Specifically ask about any structural, title or code enforcement issues. Is it for some reason expensive to insure?
If it is a scam deal they wont want to talk with you much or they will say things to make you very worried….like they don’t want an escrow or something like that. If things seem too good to be true they probably are.
November 6, 2007 at 11:10 PM #96608Participant“must drive by property before calling for additional information.”
This comment strikes me as odd. I think, why wouldn’t they want to discuss the property with you? What if you are from out of the area?
I searched craig’s list for Atlanta rentals and from that it appears that you are correct, they should be around $600 or better. So maybe the seller actually meant “net”? In that case I would have serious concerns about the building or the area because deals like that don’t linger,if they come up at all. Of course it says don’t call for additional information until you drive by! Some questions you might ask if you did call are, what are the rents ,are there are any “red flags” you should now about the building. Specifically ask about any structural, title or code enforcement issues. Is it for some reason expensive to insure?
If it is a scam deal they wont want to talk with you much or they will say things to make you very worried….like they don’t want an escrow or something like that. If things seem too good to be true they probably are.
November 6, 2007 at 11:10 PM #96617Participant“must drive by property before calling for additional information.”
This comment strikes me as odd. I think, why wouldn’t they want to discuss the property with you? What if you are from out of the area?
I searched craig’s list for Atlanta rentals and from that it appears that you are correct, they should be around $600 or better. So maybe the seller actually meant “net”? In that case I would have serious concerns about the building or the area because deals like that don’t linger,if they come up at all. Of course it says don’t call for additional information until you drive by! Some questions you might ask if you did call are, what are the rents ,are there are any “red flags” you should now about the building. Specifically ask about any structural, title or code enforcement issues. Is it for some reason expensive to insure?
If it is a scam deal they wont want to talk with you much or they will say things to make you very worried….like they don’t want an escrow or something like that. If things seem too good to be true they probably are.
November 7, 2007 at 7:52 AM #96610surveyor
ParticipantThe “net” in the statement seems to refer to cash flow, but it could also be NOI (net operating income).
Doing a basic calculation of the property:
List price of $305k, Gross Income of $600*12*9=64,800. Assumed expenses around 33% of the gross income = 21,384.
I get a cash flow of about $25k. NOI = $43k.
So it seems that the $27k is about cash flow. But you’d probably better ask the owner about the numbers (always a good idea when investigating investment properties).
November 7, 2007 at 7:52 AM #96672ParticipantThe “net” in the statement seems to refer to cash flow, but it could also be NOI (net operating income).
Doing a basic calculation of the property:
List price of $305k, Gross Income of $600*12*9=64,800. Assumed expenses around 33% of the gross income = 21,384.
I get a cash flow of about $25k. NOI = $43k.
So it seems that the $27k is about cash flow. But you’d probably better ask the owner about the numbers (always a good idea when investigating investment properties).
November 7, 2007 at 7:52 AM #96680ParticipantThe “net” in the statement seems to refer to cash flow, but it could also be NOI (net operating income).
Doing a basic calculation of the property:
List price of $305k, Gross Income of $600*12*9=64,800. Assumed expenses around 33% of the gross income = 21,384.
I get a cash flow of about $25k. NOI = $43k.
So it seems that the $27k is about cash flow. But you’d probably better ask the owner about the numbers (always a good idea when investigating investment properties).
November 7, 2007 at 7:52 AM #96688ParticipantThe “net” in the statement seems to refer to cash flow, but it could also be NOI (net operating income).
Doing a basic calculation of the property:
List price of $305k, Gross Income of $600*12*9=64,800. Assumed expenses around 33% of the gross income = 21,384.
I get a cash flow of about $25k. NOI = $43k.
So it seems that the $27k is about cash flow. But you’d probably better ask the owner about the numbers (always a good idea when investigating investment properties).
November 7, 2007 at 8:26 AM #96622Bugs
ParticipantBelieve ot or not at during the last RE bust here in SD you could buy apartment buildings with those types of numbers.
Your net would be a bit lower as an absentee owner. At the very least you’d want to find a good property manager to run it and you could expect pay an additional $200/month or more in expenses.
November 7, 2007 at 8:26 AM #96685ParticipantBelieve ot or not at during the last RE bust here in SD you could buy apartment buildings with those types of numbers.
Your net would be a bit lower as an absentee owner. At the very least you’d want to find a good property manager to run it and you could expect pay an additional $200/month or more in expenses.
November 7, 2007 at 8:26 AM #96691ParticipantBelieve ot or not at during the last RE bust here in SD you could buy apartment buildings with those types of numbers.
Your net would be a bit lower as an absentee owner. At the very least you’d want to find a good property manager to run it and you could expect pay an additional $200/month or more in expenses.
November 7, 2007 at 8:26 AM #96701ParticipantBelieve ot or not at during the last RE bust here in SD you could buy apartment buildings with those types of numbers.
Your net would be a bit lower as an absentee owner. At the very least you’d want to find a good property manager to run it and you could expect pay an additional $200/month or more in expenses.
November 7, 2007 at 8:29 AM #96634(former)FormerSanDiegan
Participant“must drive by property before calling for additional information.”
This is a standard phrase that means that either the building is fugly or in a neighborhood where you are afraid to even stop your vehicle.
November 7, 2007 at 8:29 AM #96697Participant“must drive by property before calling for additional information.”
This is a standard phrase that means that either the building is fugly or in a neighborhood where you are afraid to even stop your vehicle.
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