New Investor Basics while hanging out

    For new investors, jumping in can seem like a surreal experience.  It feels a lot like my daughter Everly does in this picture.  She sits on a chair precariously overlooking Liberty Pole Way where she appreciates the severity of both downward perspectives.  Clearly she has no footing and relies on me to position herself among a world of potential pitfalls.  My best investor clients sit similarly within our markets knowing that though not visible, I have arranged their snapshot with the utmost of care to maximize their view of the current market while keeping them safe through experience and reliability.

    Our Pro Forma always starts here:

    Gross Rents -35%

    • 10% PM
    • 10% Capital Reserve Account (roof, HVAC, windows)
    • 10% Vacancy Reserve
    • 5% repair reserve (wear and tear, paint, locks, electrical fixtures etc)

    = NOI net operating income

    – actual costs of ownership (vary by property)

    • water
    • taxes (city & county)
    • insurance
    • for more than 3 units , garbage
    • land care, snow removal

    = cash flow

    cash flow / (acquisition + any rent ready rehab)

    cash on cash ROI.

    Everly Rose hangs out overlooking the Saint Patrick's Day event in downtown Rochester NY
    Everly Rose hangs out overlooking the Saint Patrick’s Day event in downtown Rochester NY

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    Mark Updegraff

    Mark is dedicated to building Monroe county's top real estate team from the ground up, Rochester Investment. He got started in real estate as a small landowner and quickly got acclimated with the ins and outs of residential rental properties. His passion to seize the moment after a massive correction in the housing market lead him to his broker's license in record pace. Over the years Mark has rehabilitated over 30 properties, bring much deferred housing stock back to life in areas that were in decline. This background gave him valuable insight into the nuts and bolts of the housing industry in a way that competitors don't understand and lead him to founding Updegraff Development, Management and Group. Mark actively leads the pursuit of developing the most tech-savvy real estate syndicate that will make your life easier for all things real estate!

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