Chat Transcript September 25, 2006
Posted on September 26, 2006
Mike_Summey: Hi Ken
Mike_Summey: Sorry I’m a bit late.
ken: Hey Mike
ken: well I only see you and I
Mike_Summey: Looks like everyone else is late too.
Mike_Summey: How can I help you before the rest join us?
Mike_Summey: Hi Penny
Penny: Hi Mike, looks like I’m early tonight.
Mike_Summey: We must all be early.
ken: when i purchased a duplex house last year the lady that sold it to me put a tenant in there for $200 and now the lease is up the rent should be 300-350 the people never bother me andkeep the place clean. how would you handle the rent increase, and at how much would you increase itto
Mike_Summey: Maybe when I sent out the email letting everyone know that Roger would not be with us, everyone said…Oh well!
Mike_Summey: Hi Dave
DaveR: Hello Everyone
DaveR: Any advice on getting out of a bad PM contract; I know I’ve purchsed something in the WM spirit…jsut bad management
Penny: No Mike, I’m sure thats not it. Maybe its just been a long day for others also, I think they’ll all start drifting in soon. Probably about the time I normally drift in.
Mike_Summey: Ken, I’d raise the rent to market value and explain to the tenant that the previous owner did not have the debt service that you have and let them know that you will understand if they feel they have to move. Let them know they have been good tenants, but you have to get the property renting at market value if they expect you to maintain it properly. You may have to end up with a new tenant.
Mike_Summey: Dave, what’s the problem?
Mike_Summey: Hi CKeggi
Mike_Summey: Can we just call you Keg?
DaveR: Mike, great duplex in austin, can’t get a good manager to rent it out to payiong tenants
CKeggi: Hi…Keg is fine.
Mike_Summey: DAve, have you interviewed several managers?
Mike_Summey: Keg, this your first time?
DaveR: Yes, called as many as I can find!
CKeggi: It is.
Mike_Summey: Dave, have you explained what you expect and how you will monitor their performance?
Mike_Summey: Keg, we’re all friends here, so feel free to jump in any time with your questions.
DaveR: Make, What do you suggest
CKeggi: Thank you. New to the investment property game.
Mike_Summey: Dave, I tell my managers up front what I expect. Then I hold their feet to the fire to see that they do it. People do what you inspect, not what you expect!
Mike_Summey: Hi elba
elba_NY: good evening everyone. Mike,Penny
ken: Dave I hired a PM to rent my one unit out and it sat 3 months on the market. I then posted a for rent sign abover hers and I got 10 calls in a week then the unit was filled by me and I ask the PM if i could break the contract. there wasn’t a problem. I PM was very rude to people and me at times.
DaveR: Mike, I like that!
Penny: Hi there elba. How’s thing going with you?
Mike_Summey: ken, occasionally I have had people working for my property manager that were rude to prospective tenants. I told the managers to either get rid of them or I would move my properties.
elba_NY: Okay for now pennny, thanks. what’s for dinner tonite
ken: Mike I was afraid if they were rude to me then they would be rude to the tenants and they won’t call in an emergency.
Mike_Summey: One thing that all property manager need to learn is that they work for the owners, not the tenants. They can get another tenant tomorrow, but owners are hard to come by.
DaveR: Mike, how do you “move” your proeties away from a PM under contract?
Mike_Summey: Dave, I refuse to sign a contract with a property manager that doesn’t give me the option to cancel with 30-60 days notice for failure to perform or for allowing a property to sit vacant more than 60 days.
Penny: nothing much interesting tonight. sorry to say.
Mike_Summey: Dave, good property managers have no problem with this.
Mike_Summey: Keg, have you purchased your first property yet?
CKeggi: I have property in Scottsdale and CT.
DaveR: Mike, I espceially like the vacant part..my proelbem is evicting the tenacts from the last PM.
CKeggi: Living in FL at the moment.
Mike_Summey: Keg, wow! that’s a long way apart.
CKeggi: Thinking about the Condo-Tel area.
Mike_Summey: Keg, sounds like you need a jet to keep up with things.
DaveR: Keg, dont do it…I have one in Ft Lauderdale…prcies are dropping!!!
CKeggi: Sometimes.
Penny: MIke, is the notice of right to cancel in most contracts or to you have your on personalized one that you use?
CKeggi: Looking in the Daytona Beach area.
DaveR: Condotels don’t really get CF positive!
CKeggi: The association fees seem steep.
Mike_Summey: Condo prices are dropping all over the country. I’m afraid we’re going to see a major correction over the next 2-3 years.
CKeggi: Assessments seem high, also.
CKeggi: It’s been a gentle hurricane season, so far.
Mike_Summey: Keg, read mistake # 13 on page 245 of our real estate book.
CKeggi: Will do.
DaveR: My insurance doulbed in FL this year! HO and hurrcaine policies
CKeggi: The market here in Central FL seems saturated with single family houses for rent.
Mike_Summey: Everyone, finding basic bread and butter rental properties is always more difficult, but the wait is worth it. You seldom encounter finincal risks with them.
elba_NY: Theres a visual article on CNN money dated 9/14 or 15. It talks about how the markets that were HOT a couple of mths ago are looking at ridiculous foreclosure indexes and how properties are seating on the market longer. Nice must read/see article.
elba_NY: hello jace.
Mike_Summey: Hi jace
jacepharm: Hello Mike
jacepharm: lo Elba
jacepharm: Hello Elba…Sorry
Penny: elba, can I find that article on CNN.com?
elba_NY: I think so penny just find the section on real estate
Penny: okay, thanks
elba_NY: if you google or type money.cnn.com or moneycnn.com
CKeggi: Dave, can you tell me more about your Ft. Lauderdale experiences?
Mike_Summey: Penny, I have the link, but I can’t figure out how to copy it to the chat window.
DaveR: Keg, I own a five star hotel room on the strip and have found that the rates are not high enought to provide year round CF
DaveR: Condotel’s are ideally suited for someone that wnats to 1) stay there about four weeks and year, and 2) wants help with the billls
Penny: thanks anyway Mike, I’ll try to search for the article later.
CKeggi: That’s what it looks like areoun here too.
DaveR: Notice that it’s really not for an investor like the Weekend Millionaires
CKeggi: Do they all escalate the association fees based on the square footage?
DaveR: If you check out the WM seminar at see cruise on the main page…you’ll see that there is no mention of condotel’s!!
Mike_Summey: Check out http://money.cnn.com/2006/09/21/real_estate/still_overvalued_housing/index.htm?cnn=yes
Mike_Summey: Hi justin
DaveR: Yes, the association fees are based upon size!
CKeggi: OK, thanks for your input.
Mike_Summey: Dave, why don’t you tell everyone about the cruise?
jacepharm: Mike, what do you think about this deal..development project in my area which is booming with new luxury condo multi unit properties.Although this project will be for rentals can be sold as condos..although I wont sell because im a weekend millionaire investor.2.3million project with a roughly 8% return on investment…
Mike_Summey: jace, I’ll be very interested to see if the 8% turns out to be accurate. Very few of these are.
jacepharm: im hoping…if we dont run into major snafus…im scared because it will be my first development deal
Mike_Summey: Everyone, you can always get into condos easier than you can single family homes, and there’s a good reason for that. Most of them never turn out to be good investments.
DaveR: Sure, Mike and Roger are hosting a semanr at sea on the Royal Carib’s Mariner of the Seas (I’ve just saled on a silmilar ship). There will be lots of seminars and activites with Roger and Mike. And, yes, you’ll have plenty of time for fun too. You’ll get off of the ship a better investor…more at daydreamexcursions.com
jacepharm: Mike have you built a multiunit for rentals? or have you ever sold as condos? I think I know the answer just curious
Mike_Summey: Hi Bob
Bob_(vegas): greetings from Vegas
jacepharm: Hi Bob
elba_NY: Hey there Vegas
Bob_(vegas): Hi Elba
ken: Mike awhile back if i remember right you were working on a 30 million dollar deal. did anything come out of that?
Mike_Summey: jace, I’ve built more than 30 multi-family buildings. Never sold one. I do own several condominium units, but the way I bought them I didn’t have to have the kind of rents most people would need to make the numbers work.
jacepharm: Mike, I have my developer that built my personal residence so I know how he works.So I feel good about that. Although I have never built a 12 unit multifamily
Mike_Summey: ken, the big project is still in the works. All of the preliminaries are now complete and the arcitects are working on the marketing package.
Bob_(vegas): multi is different on the build side than residental
Mike_Summey: jace, I had a builder that worked for me for 20 years building small multi-family buildings that ranged from 4-20 units.
jacepharm: Mike, have you ever started with a rough % return on a development deal that resulted in a lower return after all said and done
ken: how would you determine if a 20 unit building would be right for the location?
Bob_(vegas): Anyone see Al? Is he still at the Craps table?
Mike_Summey: jace, yes. I started one project that should have produced a very nice cashflow, but regulatory hurdles and other unforseen expenses cause such a cost over run that it too more than 10 years to finally break even.
Mike_Summey: Hi tommy
tommy2062: Hi Mike & all
Mike_Summey: Bob, that sounds like a good observation to me.
Mike_Summey: As it currently stands, I’m going to have two very powerful guests next week.
Mike_Summey: Hi shane
Shane_Ky: Hi Mike
tommy2062: Bob Are you in Vegas now?
Penny: Mike, two?
Mike_Summey: Right now it looks like Carleton Sheets and the President of first Citizen’s Bank’s Western Region will be with us.
Al_Lee: Hi, all. Just finisend dinner and returned from Las Vegas. Thought I;d see who wa sin the chat room
Mike_Summey: Come on Al, we know what you were doing!
DaveR: Hi Al
Penny: Hi al, Bob was just asking about you?
Al_Lee: Bob, I survived the craps table. Had a ball and won a little
Mike_Summey: Al, did you eat first and then return or return first and then eat?
Al_Lee: I saw that you had asked.
Bob_(vegas): At the mgm?
Penny: i hope your seminar in Vegas went well.
Al_Lee: Brught home Boston Chicken for the kids and us on the way from the airport and just finished it
jacepharm: Mike…WOW! So I will prepare for the same and hope for the best….There is so much competition with all these new multi unit properties even though there condos. If the condos dont sell then I am sure they will rent and if you are renter would you rather rent an old apartment or new apartment. So I figure I try developing and see how that works..I have a developer that has over 20 years experience with stellar credentials.
jacepharm: Hello Tommy
Al_Lee: Penny, yes, the mgm. I think it is the nicest hotel in Vegas
Al_Lee: I saw Jay Leno and Dennis Miller, too
tommy2062: Hi, I’m new here trying to keep up.
Al_Lee: Theri shows, that is
Bob_(vegas): currently the largest in the world
Mike_Summey: jace, can you build them and keep them as rentals. If so you don’t need condo declarations and you can control everything.
Bob_(vegas): but not for long…
Al_Lee: Bob, how was the belly dancer?
elba_NY: hi tommy, welcome
Mike_Summey: tommy, we’re all friends, so just jump in anytime.
Penny: sweeeeet. But since “what happens in Vegas stays….” I know you can tell us what happened!
Al_Lee: Hi, Elba
Bob_(vegas): great!
Bob_(vegas): my wife got up and danced
Bob_(vegas): started tuckin
Al_Lee: Elba, I met Bob in Vegas and he asked why you haven;t moved to Texas yet ???
elba_NY: hi there Sir, Had fun>?
Mike_Summey: tommy, Keg is just sitting and watching too. We’d love for both of you to ask anything you want.
Penny: 
just kidding. I’m sure you had a very professional time.
elba_NY: It turns out I cant leave without the hubby.
Bob_(vegas): excuses excuses
Al_Lee: Penny, I won about $1500 and the MGM comp’d all our dinners.
Mike_Summey: elba, ever heard of built it and he will follow?
Al_Lee: I met with three investors while there, so it was a business trip.
tommy2062: I was wondering about all the Vegas talk. I have a 2nd home in nlv, i’m there now.
Al_Lee: Deductible on the tax return
Mike_Summey: elba, are you and hubby going to try to make the cruise?
elba_NY: Iguess Ill change it to “move it and he will follow”.
ken: Al how is the houston market?
Al_Lee: Bob, Brian is buying a house here and coming here to meet our peple in a coupel of weeks
Mike_Summey: Anyone interested in learning about financing from a top banker?
Bob_(vegas): Boy Al I bet you couldnt wait for those visitors to leave you so you could get to the tables…
Al_Lee: ken, Houston is a good underpriced market, butrents are lower thant Dallas.Fortt Worth, so it is harder to get positive cash flow.
elba_NY: Im hoping. I told him to change the Anniversary from Feb to May
Mike_Summey: elba, Anniversary???
Bob_(vegas): Ken I have two in the Woodlands……
Bob_(vegas): rents are 1275
Al_Lee: Bob, Naw! I had plenty of time at the tables since I didn’t hav eto speak. Debi and I had a terrific time.
Shane_Ky: Mike, I have not been on here in a while, because of work, What about the cruise?
elba_NY: Its on FEB
tommy2062: I have a guy selling 11 rental houses,I’m trying to buy with little upfront. any suggestions?
Bob_(vegas): where at Tommy?
Mike_Summey: Shane, the cruise promoter is in the chat. Ask DaveR anything you want about it.
jacepharm: Mike, yes that is my intentions. I plan to build to rent. I will not sell as condos although that seems to be thr trend. If I sell as condos at the going rate of $350sq ft I would net about 2 million in profit. Even though that sounds like a great deal I am on the weekend millionaire philosphy and leave the properties as rentals and cash out every few years…What do you think about this strategy? I am using 2-6 family properties that have no mortgage as leverage for this bigger deal..What do you think?
DaveR: Shane, check out daydreamexcursions.com
Al_Lee: Bob, I think Elba said she was moving here in February. Right, Elba?
Penny: sure Mike. Does is help to get pre-approval for a loan? I’ve heard pre-approval really doesn’t mean anything.
tommy2062: Mostly greenville sc area.
Shane_Ky: Thank, Just need to know date time and cost
Al_Lee: Penny, on the deals I do for houses I build pre-approval is absolutely required.
elba_NY: Yes Al. That deal fell trough
Mike_Summey: tommy, does the seller owe much on them?
Mike_Summey: jace, that sounds like a good strategy to me. I like to keep everything, even the problem ones and let them work themselves out over time.
tommy2062: Mike,nothingowed I think, he and his brother have had them for years.We just started talking.
Al_Lee: Elba, February is a good tie to move from NY
Al_Lee: It will by much nicer weather here in Feb.
Penny: Al, do you mean for the pre-approval for the buyer, before you will consider selling?
Mike_Summey: Penny, having a pre-approved loan doesn’t mean much unless you have the conditions of the approval in written form to go with it. I jsut had a pre-approved line of credit document faxed to me today to review. I have made a number of changes to it and will not accept it unless I can get it the way I want it.
ken: Al I was looking to move to texas but i’m afraid I will melt.
Mike_Summey: Hi lar
Al_Lee: Penny, Yes. It is a requirement of my bank that does the construction financing.
Mike_Summey: tommy, do you have our Offer Generator software program?
elba_NY: If it were totally up to me Al, I would have been theere already. We are in the works on a property right now, but I do not want to jinx it.
Al_Lee: ken, nearly all of Texas is air conditioned and soon it all will be
elba_NY: So, mums the word for now.
Penny: Thanks Al & Mike. I guess that is waht I was asking. Pre-approval doesn’t count for much unless it is in writing.
Al_Lee: Elba, OK, we won’t say antying else to jinx it.
ken: I guess I can barracade myself indoors for 3 or 4 months
jacepharm: Mike, I agree I like to own everything myself.
Mike_Summey: Penny, one of those “Pre-Approved” solicitations you get in the mail doesn’t count.
elba_NY: 
tommy2062: mike,not yet. saw you demonstrate it at the saturday thing you did in Gville
Mike_Summey: Hi randall
jacepharm: Hello Randall
Al_Lee: Penny, yes, along wit th pre-approval I require that the lender issue a “tak-out” letter which assures the bank that the buyer will have a loan to buy the hosue after it is completed.
Penny: gottcha Mike.
Mike_Summey: tommy, then you can see how it can really help you create an offer that could get the sellers the price they want and still have the numbers work for you.
randall: Hi guys, this is my first chat and I am a rookie investor. I’m studying now, but have not yet made my first purchase.
elba_NY: Hey randall, welcome.!!!!!
Mike_Summey: randall, you’re the perfect one for these chats. We’re here to help you learn and to cut down on the time it takes for you to get comfortable with real estate investing.
Al_Lee: Mike, Penny. Mike is absolutely right. The actual written evidence of pre-approval must be specific and describe a property and sale price and dates.
DaveR: Randall, have you read the books?
Mike_Summey: Every week, we have a mix of seasoned investors and newbies, which means everyone gets involved.
Al_Lee: The phony “pre-approval” notices you get in the mail are meaningless
randall: Thanks! Yes I’m reading the books now. One question that I have - when I use the offer generator how many years is it ok to structure the purchase of the rental house?
Shane_Ky: What kind of loan to value is anyone getting on thier refinancing?
elba_NY: The only Real estate programs were you can chat with at least 3roven experts 4 times a mth.
elba_NY: 3 proven that is
Mike_Summey: randall, you can use any number of years that you are comfortable using. If you’re 25 you may be more comfortable with 30 year financing than someone who is 60.
Al_Lee: Elba, 4.3 times a month.
tommy2062: mike,yes i understand, this just kind of came up and we have been swapping emails. I may have to buy software. The other thing I travel for work alot so hard to spend too much time on it.
elba_NY: whos the 4th and sorry for asking.You mike Roger and….
Penny: I guess I’m a little confused. Which comes first, the offer of good faith money to purchase a house or the pre-approval, by the time you get a pre-approval on a difinitive property the property might be sold.
jacepharm: Mike, funny story…I put an offer on two multi unit properties and the seller liked the deal so much that he decided not to sell and start making offers on new properties the weekend millionaire way…He asked me where I learned surch strategies and he now wants to be part of the weekend millionaire crew…
Mike_Summey: tommy, if you’re in the car a lot, you may want to get the audio program so you can listen while you drive.
Al_Lee: Mike, I am 60 and I love to use 30-year loans and have bought several properties in the last couple of months using 30-year loans
Al_Lee: Penny, in the case of using a “pre-approval” to strengthen your offer and negotiating position, you might use a more general letter form your lender.
Mike_Summey: Shane, you can get 80% LTV on new purchase without much problem and can get 90-100% LTV on properties you’ve owned for a while.
Al_Lee: fron
Al_Lee: from
Al_Lee: wow, I can’t type)
Mike_Summey: jace, did you invite him to join the chats?
tommy2062: mike, I just bought the tapes you had on sale, they are back in SC waiting for me
jacepharm: no…not yet
Al_Lee: That is a different situation from what I am describing with my new-construction houses.
randall: Do you guys have any “red flags” when you look at a property that tells you to stay away?
Shane_Ky: That sounds good, I just closed on the 96 units on the 1st and I will want to refinabce in 22 months
jacepharm: Mike, not yet..he hasnt followed up yet
Mike_Summey: Penny, the good faith deposit you put down with a contract has little to do with financing. It’s money you put up to show your good faith and it can be at risk if you can’t perform on the contract.
justin: i have a rental that i used 30yr mortgage… i have 20% equity, should i refinance to a 15 yr. I’m assuming the answer is noi.
Al_Lee: Shane, that sounds terrific
Al_Lee: justin, if you can get a 40-year I would consider refinancing to imcrease cash flow
Mike_Summey: Hi Doug
Mike_Summey: You’re a bit late tonight
Shane_Ky: Thanks Al, I really like the property
doug_in_ct: Hi Mike,
Penny: So MIke, I guess the pre-apporval should definately come first?
elba_NY: Everyone, the little one as to go to bed. Al always a pleasure seeing you here. Mike,Penny, everybody.A must see next week Ill be here, thanks for the hosting Mike we appreciated.
Mike_Summey: justin, Al and I disagree on financing. I like to get properties paid off as quickly as possible. Cashflow improves dramatically as do your options when you own a property free and clear.
Penny: Goodnight elba. Have good rest of evening
Mike_Summey: Goodnight elba.
tommy2062: mike, if i bought offer generator is it hard to figure out the first time, for theses 11 properties would i do 11 different or one for the total
jacepharm: gn elba
Al_Lee: justin, I think that cash flow shodl be the paramount consideration so long as you do not go negative on the amortization. If you never pay off the principal and make positive cash vlow the whole time you own it you will have hit a home run. The value will appreciate to the point where the current level of debt seems insignificant compared to the then-cutten valuation.
Penny: gove your 7 year old a hello from me.
Mike_Summey: tommy, the OG has pop up help for every entry you need to make. If the 11 are a package, I’d make one offer for all of them rather than 11 separate ones.
elba_NY: By the way to those who do not know: This point is one of the few were Al and Mike dont see eye to eye
elba_NY: the very few i should say.Im I right?
Al_Lee: Elba, that is correct. We view debt a bit differently.
doug_in_ct: Here is a question for you: We got a letter from a mortgage company indicating that based on a recent appraisal on one of our residental investments, that we have a 72% LTV on our present mortgage. To remove our monthly PMI (private Mortgage Insurnce) which is $94.50/mo. we need to get the LTV down to 70%. They offer to elimiate the PMI if we reduce our principle balance by sending them a check for $4,165.87.
elba_NY: Ive heard the radio visits betwwen you two
Al_Lee: I love to let inflation erode my debt as much as possible. I only pay down the debt if the banks require me to.
elba_NY: bye now.
randall: So far I’ve been calling some property managers to establish a relationship and I scouted out a neighborhood that one recommended. Another has told me of a house that the owner would like to sell to an investor. should i just call the owner to ask for a look through?
Mike_Summey: doug, most PMI can be removed at 80% LTV
Al_Lee: I need to go unpack and get settled back home.
Al_Lee: Goodnight all
justin: I get panic attacks when loans are for too long. My thinking is more similar to Mike’s. This is also my only rental and I dont want to mess it up. I like the idea of paying of the loan
Mike_Summey: randall, that’s as good a way as any to start. It’s more important that you start than how you do it.
tommy2062: Mike, thanks i’ll do it. when i get back to sc. gotta go now, wife is having a bunch of vegas ladies in for bible study tonight & im in the way
doug_in_ct: I calculate that the payment will drop to $902.82/mo. down from its current $1,027.56. So we would have an additional $124.76 each month in cash flow if we provide the requested payment.
Penny: Doug, I thought PMI could be removed at 80% also.
Penny: I had mine removed at 80%. I didn’t have to pay anything to drop it either.
Mike_Summey: justin, I’ve never seen anyone get in financial trouble with a free and clear property. I saw many people lose everything even though they had large equities, when interest rates topped 21% in the late 70s.
Shane_Ky: That is a good point Mike
Mike_Summey: Doug, ask why the PMI can’t be removed at 80% LTV.
doug_in_ct: I calculate that it would take 33.3 months (2.7 years to make this money back) after that time all the savings would be “gravy.” I have a great long term loan on this property that I would not like to distrub by refinancing.
justin: question: pmi is set to the loan amount. For example, i borrow 80K house value is 100K. Does that mean pmi can be waived?
Mike_Summey: Everyone, I’ve enjoyed it, but I’m going to watch Monday Night Football with my boys. See you here next week.
randall: Thanks Mike. I’ll join you again another night hopefully at 8 pm. appreciate you sharing your experience. Good night!
CKeggi: Thanks Mike
Shane_Ky: Good night Mike
jacepharm: Thanks Mika and all
Mike_Summey: Goodnight all!
CKeggi: ttfn
Penny: I’m headed out also, long work day tomorrow. Goodnight everyone.
jacepharm: Good night everyone
Shane_Ky: Jacepharm, what kind of multi are you developing
jacepharm: u there Shane
jacepharm: sorry stepped away for a bit
Shane_Ky: Yea just working
jacepharm: Im developing a 12 unit
Shane_Ky: What doest it cost per unit
jacepharm: it cost about 110sq ft
jacepharm: each unit is about 1000sq ft
jacepharm: $110,000 per unit
jacepharm: units are retailing for about $350sq ft $350,000
Shane_Ky: I have land to build more but the trouble is mixing class a with class c
jacepharm: what are you building now?
Shane_Ky: What area is this in
jacepharm: Hudson County NJ
Shane_Ky: I am just buying, just closed on 96 unit at around 26,500 per unit
jacepharm: that is awesome…Congrats
jacepharm: KY?
Shane_Ky: Yes
jacepharm: cash flowing im sure
Shane_Ky: Are you going to sell therse units or rent
jacepharm: im gonna keep as rentals…
jacepharm: I want that long term income
Shane_Ky: Great cash flow, I only buy for cash flow
jacepharm: I can sell and make a quick 2million at the current going rates
jacepharm: I agree weekend millionaire philosophy
Shane_Ky: you could do that than reinvest in high cash flow propertie like class c
jacepharm: Yes I can but what I plan to do is cash out slowly over the years while still maintaining a cash flow..Will take some time to draw out 2 million but arent we in it for the long term
Shane_Ky: we should be, what does property rent for in NJ
jacepharm: 2 bedroom in the are where im developing 1200-1500 avg for a 2 bedroom
jacepharm: 10 min drive they rent for 2500 for a 2 bedroom
jacepharm: what about your area?
Shane_Ky: That is good, it depend on how new here, the class c 2br $500 to 550 class a 1200 to 1500
Shane_Ky: how big is 2 br
jacepharm: new project 1000 sq ft…For an older bldg 500-800sq ft
Shane_Ky: Does 110 sq ft inlude land
jacepharm: land is separate
Shane_Ky: That would be $1,320,000 for 12 1000 sq ft units not inluding land
jacepharm: That is correct…..hey gotta run…it was great talking….Lets catch up next week…Happy Investing
Shane_Ky: Good night
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