Love this type of video with a new investor because it's so realistic to most people. The people with tons of units are not the majority. Thanks for all you do Chad.
Truly enjoy the deep dive with actual numbers on the deal. This illustrates that Real Estate Investing is a Get Rich SLOW operation for the small and mighty investor!
Glad you liked it, Dean. Thanks for watching. You're right - I've made money on deals over the LONG run when they weren't home runs up front. It requires buying them in a way (with cash reserves, taking your time) to have the staying power of get rich slow.
INCREDIBLE deal deep dive, guys!! Unbelievable value! NOBODY shares online the true dollar amounts, each and every step, as well as the good, bad and the ugly of these complex real estate undertakings. Congratulations, Mike, on a job well done and also all your lessons learned. Thanks for your generosity in sharing so many tips and metrics, so the rest of us can learn and hopefully follow in your footsteps.
Hi Chad. I just wanted to clarify the Capex on this deal. It looks like 16% of each unit's rent? (Michael called it "8% for each" which I found a little confusing.) Is a 16% Capex budget typical, or recommended?
Sorry for the confusion TrikTrak. I allocated 8% for regular maintenance, and then 8% for CapEx. 16% all together. Maintenance includes more mundane toilet leaks, and other basic repairs, while CapEx is the big suff like HVAC or Roof. From my understanding, the budget depends on the property condition and age. However it is good practice to budget for both. The Maintenance & CapEx budget can range anywhere from 12% to 20% total.
@@mnguyen474 Great- thanks for the thorough answer, Michael! And thanks for patiently sharing all of the nuts & bolts of this deal. I am about to buy my 1st multi-family, and I really appreciate this breakdown.
@@triktrak_1451 Thank you for patiently listening! I hope the lessons were helpful for you as you close on your 1st multi-family. Big congrats btw! Feel free to connect with me and share your wins at my email in the description.
@@legacyopp9318 I'm just saying he's not 5 minutes from losing his home. He underestimated repair costs on an old home. That's what not to do. But he was conservative enough to have extra cash and to not rush ahead and make this mistake 2 or 3 times. So, he will be fine.
Love this type of video with a new investor because it's so realistic to most people. The people with tons of units are not the majority. Thanks for all you do Chad.
Thanks for watching, James! The small investors are who my channel is for. Glad you find it helpful.
Thanks for the reply James! Glad my story was realistic and hope you got some value out of it.
I bought your book and it arrived today!!! I am so excited to read it!
Thank you so much Dayrel! I hope you find the book helpful.
Excellent case study - I like the down to earth approach. Excellent interview skills, Chad!
Thank you so much Nancy!
Excellent video! Love the details and numbers especially.
Thanks for the feedback, Mark.
Thanks Mark! Hope the details were helpful for you.
Truly enjoy the deep dive with actual numbers on the deal. This illustrates that Real Estate Investing is a Get Rich SLOW operation for the small and mighty investor!
Glad you liked it, Dean. Thanks for watching.
You're right - I've made money on deals over the LONG run when they weren't home runs up front. It requires buying them in a way (with cash reserves, taking your time) to have the staying power of get rich slow.
Yep yep. Glad you enjoyed the deep dive episode. This duplex is definitely a slow, long-term investment.
Great interview!
Love learning from investors successes and failures. Pointed questions make for an interesting interview. Thanks!
Glad you enjoyed it, Brian! Thank you for watching!🙌
Appreciate it Brian!
Thank you so much so for these vids
My pleasure! Thank you for watching, Kiet!
Super Show...! Thank you.
INCREDIBLE deal deep dive, guys!! Unbelievable value! NOBODY shares online the true dollar amounts, each and every step, as well as the good, bad and the ugly of these complex real estate undertakings.
Congratulations, Mike, on a job well done and also all your lessons learned.
Thanks for your generosity in sharing so many tips and metrics, so the rest of us can learn and hopefully follow in your footsteps.
great dive here
Taxes are really high :) It's a general theme across PA. Do taxes come done ever?
Not that I have seen. Most cities and local government raise them over time.
Hi Chad. I just wanted to clarify the Capex on this deal. It looks like 16% of each unit's rent? (Michael called it "8% for each" which I found a little confusing.) Is a 16% Capex budget typical, or recommended?
Sorry for the confusion TrikTrak. I allocated 8% for regular maintenance, and then 8% for CapEx. 16% all together. Maintenance includes more mundane toilet leaks, and other basic repairs, while CapEx is the big suff like HVAC or Roof.
From my understanding, the budget depends on the property condition and age. However it is good practice to budget for both. The Maintenance & CapEx budget can range anywhere from 12% to 20% total.
@@mnguyen474 Great- thanks for the thorough answer, Michael! And thanks for patiently sharing all of the nuts & bolts of this deal. I am about to buy my 1st multi-family, and I really appreciate this breakdown.
@@triktrak_1451 Thank you for patiently listening! I hope the lessons were helpful for you as you close on your 1st multi-family. Big congrats btw! Feel free to connect with me and share your wins at my email in the description.
@@triktrak_1451 How did it go with your multifamily?
@@suzanemagali Thanks for asking. Haven't acquired one yet.
Omg this guy is 5 minutes from loosing this home. How not to flip. Hope others learn from this.
Not true. And the point is for others to learn from this.
Just saw the thumb nail for the video. " Don't do this." What am I missing that's not true?
@@legacyopp9318 I'm just saying he's not 5 minutes from losing his home. He underestimated repair costs on an old home. That's what not to do. But he was conservative enough to have extra cash and to not rush ahead and make this mistake 2 or 3 times. So, he will be fine.
I definitely made a lot of mistakes on this property and share them here. Hopefully people don't make them either!