Our rental property portfolio: Financial highlights
Note: Properties are priced rock bottom based on traditional sale and are non-negotiable. The remaining buildings factor commission in, so if you are working without a broker we can provide a slight discount. (The following buildings have been sold and removed from the list below: 241-243 Main St., 7 & 9 Dunbar Ct., 26 Prospect St., 2 Carey Ct.
*Note: For more detailed information, including APOD (Annual Property Operating Data budget), please complete and return our Non Disclosure form located on our more info/downloads page.
AN EXCEL SPREADSHEET WHICH WILL ALLOW YOU TO TWEAK NUMBERS BASED ON YOUR OWN PREFERENCES.
PDF FLYER TO SEND OR PASS OUT TO OTHERS ASSUMING YOU WANT TO ATTRACT PARTNERS OR REFERRALS
NOI (Net operating income) is an estimate only using a nationally accepted metric called the "50% rule" which states that, over time, the expenses of any multi-family property will equal 40%-50% of it's gross rent (35-45% for houses). Expenses include all the usual operating expenses plus an allowance for vacancy, but do NOT include debt service. AGI and MGI are as of 5-31-2016
We are using 45% for our numbers for multi-units and 40% for single family homes. Our buildings have had so many upgrades and repairs that they will most likely expense at the low end of the scale. For example, our actual percentages for 2014 averaged 60.48% (and even higher in previous years!) due to an aggressive capital improvements and preventative maintenance campaign. In other words we spent two years of repairs and upgrades every year so that repairs expense would be much less in future years, when we retire.
There is one & only one scenario that we may entertain in regards to PARTIAL SHORT TERM seller financing: Banks typically loan only 75% - 80% of a buildings value or price, leaving the buyer to come up with 20%-25% of the purchase price. We will seller finance 10% of the selling price, so that you only have to come up with 10%-15% vs. 20%-25%. This is a very common technique. Two caveats: 1.) You must have rock solid credit, and we will of course hold a 2d mortgage. 2.) Some banks will put restrictions on how you can handle the payback of this seller financing. For example, not allowing you to make payments to us for a full year, and/or requiring a certain profitability before payments are made to us. This is a deal breaker and we will ask you to ascertain in writing any seller financing / second mortgage restrictions before we begin the process. This must be step #2 after the purchase and sale.