Posted by Sally on February 09, 2000 at 21:51:12:
Ed, thanks for your post, you give me confidence! It is just like all the people here say, educate yourself before you do a deal, so that is what I have been trying to do over the last few weeks. I am at the point where I can scan the financials for an apartment building and see the fluff and also what has been left out. One 28 unit complex I looked at today had added in $10,800 a year in extra income to the gross rents. I asked what that was for and the real estate guy said that it was the full amount of the security deposits ($300) for the expected vacancies. He said that the ‘quality’ of tenants they had meant that they always left the apartments in a mess and were not entitled to their deposit back. I said no thanks, not the right place for me. After all, in addition to that not being what I consider income, that would reflect a 120% turnaround of tenants over a year wouldn’t it?
I look forward to meeting you and everyone else at the conference. I expect that I will have to remodel my brain in order to fit all that I learn in!