Tag: Rental

HOW TO FIND AN APARTMENT + RENTAL TIPS

– Hey so it's been requestedof me to make a video on how to find your first apartment.

Well well well well, I am veryqualified to talk about this because I'm a rebel without a cause and a curious George so I'vemade quite the decisions in my living spaces over the years, and I've mad a lot of mistakesas people can call them, but I don't call them mistakes because they built character, and I am gonna share them with you.

So maybe finding an apartment can be a smoother experience for you.

Top ways to actually look for an apartment is you can do word of mouth.

That's number one.

So if you know someone who lives in an apartment already ask them.

They're going to be yourmost knowledgeable source and they're gonna be superduper honest with you.

So ask them who their building manager is or who their landlord is.

If they like them, ifthere's other units available in their building.

Ask away because they'regonna be super helpful.

Your number one resource.

An apartment hunter willhave a database of apartments that are available.

So they're gonna ask you questions or have you fill out a questionnaire telling them what neighborhoodyou're looking in, how much rent you're looking to pay, if you have a cat, a dog,you need a washer and dryer.

All that good stuff and they'll plug that into their database and they'lllet you know what pops up.

Now apartment hunterscharge a fee normally.

So find out what their fee is.

It could be 10% of years worth of rent.

It could be 10% of a months worth of rent, or they could charge you nothing, and actually charge thelandlord or management company for finding you for them.

Craigslist is a great resource.

I would look for the apartmentsthat have photos at least, and not just a description.

Or at least a website thatyou can go to and check out some of the units.

I don't think I everhad any luck with those ones that don't have photosbecause there's usually a reason they don't have a photo posted.

Look for property management companies.

So you can Google propertymanagement companies in your city and see what pops up.

A property management company is great because they'll have differentproperties all over the city.

They may have propertiesof different price ranges.

They might have a buildingthat's all studios.

Ones that are one, two bedroom.

So they'll have a lot of options for you.

If you have a neighborhood you like and you're just strollingaround the neighborhood and see a building that looks really cool.

Look on the side of the building.

There's usually a phone number listed and the name of theproperty management company or landlord and the building may even have a management office on site and you could stop inthe management office and see what they have to offer.

Besides how you actually goabout finding an apartment.

Here's some things youneed to know about moving.

You want to make sure your money, your finances are in place.

You also want to evaluate your lifestyle and safety to me is prettydarn important as well.

Let me discuss.

Ideally you want to have agood chunk of change saved because you never knowwhen there's an emergency that's gonna happen, or not to be a negative Nancy, but you could lose your job, and if you lose you job,you still want to have enough money where you'llhave a roof over your head.

Now I'm saying this isthe ideal situation, because I did not have an ideal situation and yeah I still don't so.

Having money saved in case of an emergency is just going to makeyour life so much easier.

It is very stressful living month to month waiting for checks.

So if you have to do it you have to do it but let me tell you it sucks balls.

What kind of lifestyle do you have? What kind of lifestyle do you want? Are you fun, do you wanna livein a really busy neighborhood that's got great nightlife,and bars, and clubs, and social hours, or areyou complete opposite? Do you not wanna be nearany type of fun and bars and you wanna life a library or on a farm? So evaluate your lifestyle and see what will work for you.

Decide what your deal breakers are.

What are your needs and wants? If you have a dog or a cat.

It's probably gonna be a deal breaker if you can't have a dogor cat in your building.

So you need to find a buildingthat's gonna allow you to have an animal and do note that you will pay a securitydeposit for your animal.

Just so you know.

If there's no laundry in the building.

If there's no laundry in the unit.

Are you okay with going amile away to a laundromat to wash your clothes? If you get a package, is theresomeone to get it for you? They're gonna leave it on the doorstep? Someone gonna steal it? Make a list of whatyour needs and wants are and then write a list of what your absolute deal breakers are.

So that's going to helpyou narrow down the process of what you're looking for.

So there are websites that will tell you the crime rate in the neighborhood and how walk able and stuff it is.

I'm gonna leave those downbelow in the comment section because I want this processto be easy for you guys.

Moving is stressful enough.

So if I can make this process a little bit more streamline for you thenthat'll make me feel okay.

Lifestyle, needs, wants,deal breakers, and safety.

Once you reach out to one ofthose resources I've given you.

To actually view an apartmenthere are some things you want to look for whenyou go and venture out.

You wanna go during a time of day where it is on and poppin'.

If you go at 10 AM, theneighborhood's probably going to be peaceful and everythingis gonna look fine and dandy.

You wanna go in the middle of the day closer to the evening whenpeople are coming home from work.

They're off work.

You can see how loud the neighbors are.

You can see how crazy the neighbors look.

You could see what theparking situation is like when everyone's home.

You can see a lot if yougo at the right time of day to look for an apartment.

If you see other peoplethat live in the building.

Do go up and ask.

Do you like living in this building? And a lot of times theywill tell you the truth.

They will tell you becauseif they don't like living in the building they're gonna tell you.

They are not gonna haveany qualms about being like it is loud, you know watch out for him, up the street this.

And again if they like it they'regonna rave about it to you so don't be afraid to goup to someone and ask them what they think.

Some things that you should look out for when you actually go view the apartment.

So you're either going tobe viewing an apartment that someone is still living in, but they're moving out soon and they're showing their apartment.

Or you're going to endup seeing an apartment that's already vacant.

You might even see anapartment that they use as their show apartment.

So no one lives in it, it's just for show.

So keep in mind with the show apartments that your actual apartmentunit may not look like that.

So you need to find outwhat your actual unit would look like andpreferably you wanna see it.

Now, wanna make sure yourcellphone works inside of the apartment.

So do make a phone call andsee if you have good reception.

Do flip on the water.

Like if you have sucky water pressure.

It's gonna suck bad foryou to take a shower.

Sucky water pressure is a no no.

Open the windows.

Windows can look beautifuland you open them up and there are bars on them.

There's practical things that you can do just to give you some ideasof things I've learned.

Is there a sprinkler system? Also pay attention to the lease.

You know if you're lookingfor short term lease or a long term lease.

Leases are usually a one year at a time.

Rent usually rises ever year so be prepared for a smallincrease in rent every year.

I hope this video wassuper helpful for you and happy apartment hunting.

Vets, leave a commentfor the newbies below.

Let them know anything I left out or anything that might besuper helpful for them, and newbies, leave me a comment as well.

Let me know what you think.

Find me on other social media.

I'm on Instagram, Facebook, twitter, and subscribe to this channel.

I'll see you guys next time, bye.

Source: Youtube

My Rental Property Damaged and Trashed

OK.

about to.

Take a look at my property that has.

according to Carlo and James been seriously screwed by my tenants here.

(that) just moved out last weekend.

Alright so.

This is the main floor, and we are just having it repainted and everything.

(Let's)take a look at the basement.

So this is their idea of how you utilize basement storage apparently.

These are the same guys sending me emails asking about their security deposits.

but I'm guessing this is probably nothing compared to what we are about to see.

James:Don't forget the ceiling.

right here.

Ah the crack.

That's not necessarily them.

James:Um, I wasn't thinking (that) at first James: but it could be just because James: of the bathroom, directly above this one Oh it's leaking? James:Um.

Not leaking but James:just take a look at it you'll James:see what I mean.

Alright Alright First room.

These people lived like animals.

Carlo:This thing work? If it does, we could use it.

James:We have a box for it downstairs.

(electronic beep) (sound of portable ac fan) You did turn off the AC right? James:Yeah OK James:It's been of since you told me to turn it off.

Especially since that window is wide open.

James:Yeah Was it open the whole time? James:Huh? Was that window open the whole time? James:Which one.

That one? Yeah James: (I)think so and the AC was on? (that) doesn't make any sense.

This is actually the least bad.

James:Yeah I think this was James:Chris's room because James:it kind of has that dog smell.

which they weren't supposed to have pets.

There's (inaudible) proof so this is a dog bone? James:Looks like it.

Something.

James: but I mean you can see they actually James: did a pretty good job painting.

Yeah I know Chris did that.

inaudible This is the sh** fest.

Look at this sh**! Sigh.

It's like they've never cleaned the bathroom.

once in their whole history.

James: Inaudible Got it.

We'll leave the light on for now.

This is on it's way up to the top.

Hole in the wall This must be when they got arrested James:Um hmm cause there's a bunch of soil James:Yeah The cops must have uprooted everything.

James:Yeah I imagine so.

But even still.

James:It might have been like mostly James: cops going through the trash.

You know it's not nearly as hot up here as I thought it would be.

James:Inaudible Yeah but the AC is not even on.

Sigh This is just insane.

I don't even.

I don't know it might not have been like this when the before the cops came in and tore it all up.

but still James:.

But I'm seeing a lot of the cigarette buts James:and like just food everywhere.

That doesn't have anything to do with the cops I guess.

James:yeah Plastic bottle caps, What other kind of sh** (do) we have here? Carlo: It looks like they had pots here.

Carlo:POTS.

Where you are standing.

Pot? Carlo:Pots.

Yeah.

There is evidence of soil and pots everywhere.

Carlo:I mean it's a f**king watering can here.

Yup Carlo:.

Air pump? sigh.

Trying to get a close up of all this sh** I mean it doesn't even look like he tried f**king clean this place out.

You know?.

No attempt made whatsoever.

James: is that the aqua teen hunger force DVD (Laughing) Carlo: God**mit! James:Oh wait no they're both in there.

Carlo:Inaudible.

Laughing.

Carlo: CORNDOGS FU** YEAH!!!!!!!!!!!!!!!!!!!!!!!! James:This was just there.

OK at least nobody can see this.

James:Yeah What's with all the PVC pipe? James:Irrigation? We need a junk truck.

James: Yeah.

Ok It used to be so nice, man.

Wallet? Carlo:Um Hmm James:It would be nice to trim down these branches James:and put in a basketball hoop.

Carlo:How weird would it be for me to look in there for money? James: Where? Carlo:That wallets out just for show.

Yeah I know.

So How did you feel when you first saw all the work you had to do? James:Well James:Fu**ed!!!!!!!!!!!!!!!!!! Alright well.

James:At least it's something to do right? Yeah! There's your summer job right there buddy.

Source: Youtube

How to Calculate Numbers on a Rental Property

Welcome to Hipster's first how-to video! I'm going to show you how to run very quick numbers on a rental property.

You can use this formula—so easy and so fast —for any property you're looking at.

It's so straightforward.

I'm going to do it on this little whiteboard here and use my calculator.

(Yes, it is actually that large).

I'll be behind the scenes here doing my calculations while I write out what is going on.

I'm using an actual rental property as an example.

It has a purchase price (you have to love my handwriting) of $100,000.

00.

In rent (and always verify this before you buy any property.

Verify it with property managers or… just verify it), this particular house gets $1075.

00 in rent.

This house is in Indianapolis.

It was built in 2002, I think.

Super-cute little house.

Three bedroom, 2 bath.

But all we care about right now are the numbers.

I'm looking at this property.

What do I want to take into consideration? I write out my list of things that I need numbers for first: taxes, insurance (again, don't you love my handwriting), I always make an estimate for vacancies and repairs (which I'll touch base on in a second), and then for me I always use property management so I have that line.

That may be optional.

For sure, you're going to have taxes and insurance.

Vacancies and repairs are really up for your best guess.

I buy turnkeys so they're already rehabbed.

I use 7% for vacancies.

You can look up the statistics of a particular city and see if that number is about right.

And for repairs, like I said, fully rehabbed, so I just use 5% for repairs.

If you calculate this, this particular house the taxes per month (and this is all monthly) are about $60.

00 a month, which is excellent.

Insurance on this property is about $45.

00.

Seven percent (and those percentages are of the monthly rent) of that is going to be $75.

00.

Repairs are going to be 5% which is $54.

00.

The property management in this case is 10% (should've put that there), and that would equal about $108.

00.

Total all those up.

These are going to be all your expenses.

Grand total: $342 for monthly expenses.

Now, here's your income: $1075.

00.

Here are your expenses: $342.

00.

So do $1075.

00 minus $342.

00 and if you buy this property for all cash in theory per month you should be getting $733.

00.

That is cash flow in your pocket per month.

To calculate your cap rate, you are going to do $733.

00 times 12 (because you want it annually) and the total amount that you paid for this house is $100,000.

00, which is going to equal… calculations…8796 divided by 100,000…you're going to get 0.

088, which equals 8.

8%.

This is your cap rate.

That is the main number.

That's going to explain to you kind of where the income is in relation to where the income is in relation to howmuch you paid for the property I know you're already asking (and I don't even have an eraser… let's see…hang on), I know you're already asking "Well, what if I'm financing because I've got a mortgage?" Ok.

Not a problem.

Let's erase this stuff.

You already know your expenses.

We're going to get rid this section.

We'll leave that $324.

00 for total expenses.

(I guess I could've written a little smaller.

) How do you deal with the mortgage? Well, $342.

00 was your total expenses without a mortgage.

All you need to do now is figure out what your mortgage payment per month is going to be.

Go online, find any old mortgage online calculator, plug in the numbers and see what your payment is going to be.

For this one, I used a 5% interest rate, and with 20% down (which is standard for an investment property), you're going to have a loan of $80,000.

00 (that's an $80K loan).

Your mortgage payment at a 5% interest rate is going to be $429.

00 per month.

Since the total expenses were $342.

00 already, just add those to $429.

00.

This will be your new expenses… (am I doing that right?) $771.

00.

Yeah so now you have Now you have $1075.

00 minus $771.

00 is going to give you $304.

00 per month.

This is your new net income after the mortgage payment.

On this house, you're still bringing home $304.

00 per month, which is ridiculous for a rental property.

That's amazing! That's $300 easy in your pocket per month.

The only thing you can do other than this is… you already have your cap rate…now you want to calculate your cash-on-cash return which ultimately for any purchase is all that matters.

Cap rates only explain whether you're getting a good price for the property or not.

Your cash-on-cash is actually how much you're making based on how much money you put into the deal.

So, $304.

00… make it annual, so times 12.

Then, instead of using your total purchase price, you want to put in how much money you actually put into the deal.

Your down payment on a $100,000.

00 house was probably $20,000.

thousand dollars I went ahead and rounded that up to $25,000 because you're probably going to have about $5000.

00 in closing cost.

That's going to give you 3648 divided by 25,000 equals 0.

1459.

Change that to a percentage and you are looking at a 14.

6% cash-on-cash return.

That is the number that you care about.

If you are paying all cash for the property all you care about is this 8.

8%, because your cap rate and your cash-on-cash will be the same for an all-cash buy.

For a finance buy (and this explains perfectly why I'm such a fan of leveraging money as much as possible), you're making almost 15% return on your money… on your actual cash that you invest.

That's amazing! With real estate prices gone up how they have, to be able to make a 15% cash-on-cash is great.

This is a fully rehabbed house.

Tenants are in it.

Property managers are in place.

The only work it took was for you to sign the papers and get a home inspection.

Boom! There are your numbers.

A very quick summary… We'll see if I can erase this super fast.

I'm not even going to try and erase it all.

I'll even do it in blue since I'm holding a blue marker here.

Step ONE: Calculate your expenses.

As a recap, that's going to be your taxes, insurance, property management fees, and estimate for vacancy and repairs, and then if you have the mortgage, the mortgage expenses.

You already know your income, so TWO: take your income minus your expenses and that will equal your net cash flow.

Don't ever buy a property that does not tell you that you're going to get a positive…Let's see… What did I say? Don't ever buy a property that suggests you're going to make a negative cash flow.

You always, always want positive.

THREE: Calculate the cap rate, which is your net income, times 12, divided by purchase price.

FOUR: If you're financing calculate your cash-on-cash… which is your net with the financing, times 12, divided by your cash in.

As a clarification point, the cap rate does not include any financing cost.

Your mortgage expense is not included in the expenses.

It has nothing to do with the equation.

That is standard.

Cap rates do not include financing.

It's assuming an all-cash purchase, because whether you finance or not (I like to say) is your own problem.

It has nothing to do with the purchase price.

What matters for you financers is the cash-on-cash, which does in fact take into account the mortgage expense.

That will calculate your official return.

Alright? That's easy rental property numbers.

Another…one last disclaimer… this does not include rehabs.

If you're rehabbing a property you have got to include those costs in these equations.

It takes a couple of extra steps.

It's still not a big deal.

In general… a general formula for you.

I hope it helps!.

Source: Youtube