Question: what's one of the most over-looked, yet most devastating expense on rental properties? Answer: capital expenses. It can be the silent killer that turns amazing deals into flea-infested dog-deals.
In this class you'll learn:
- Why buying these "out of state" cash flow deals isn't always what we think
- Calling a pig a pig
- Deals that "inspire your desire"
- A deeper look into vacancy and factors that impact vacancy
- Property maintenance and why generic X% of rents for maintenance is silly hogwash
- Property management - minimums and how property management is impacted by vacancy
- Updated analysis and a deeper look into return on investment
- What are capital expenses?
- How much are capital expenses and how frequently do they come up?
- Using The World's Greatest Real Estate Deal Analysis Spreadsheet™ and the Capital Expenditures (CapEx) Calculation Table to estimate what you should be using for CapEx on your rentals
- Beating "typical" costs through personal advantages like being on-site, doing the work yourself, managing the property/work yourself, having the right connections for discounts
- The 4 areas of return... it is not always about JUST cash flow, right?
- Not all markets appreciate... calculating returns for a variety of reasonable market conditions
- Rent sensitivity and the impact of different rent appreciation rates (what happens if rents don't go up as much as we'd like)
- Brian being SOOOOO unreasonable
- What if you just paid cash... what does it look like then?
- A surprising discussion on how property value (price) affects the impact of CapEx
- Life isn't fair and neither is Brian's estimate of CapEx... or is it?
- Higher price and its impact on CapEx
- False beliefs exposed: aren't the returns almost identical on properties?
- Completely biased and cherry-picked comments from a popular real estate investor website that are commonly accepted as fact but might be the rantings of a delusional psycho-path
- Package deals and CapEx
- Tips if you're going to buy turn-key cash flow deals (and some potential concerns)
- What if you've already drank the Kool-Aid?
- Long-term portfolio optimization through thoughtful, discriminating acquisition
- Some final thoughts...
- Plus much much more...
Duration: 1 hour 46 minutes
Recorded: August 31, 2016
Instructor: Brian Williams