All Forum Posts by: Chris Bounds

@Michael T.
No I self managed while I was rehabbing. I am listing it for sell next week.

Hi Dean, I'll e-mail you.

Quick update. Exterior rehab is basically done. Some minor touch up painting and that's it. Vacancy should be at 21% by the months end. It's been fun turning this thing around. Ok it wasn't ALL fun at the time, but looking back it was a good buy. Now I'm pursuing a refi while considering an off-market sell.

Golfcrest Apartments

3045 Golfcrest Blvd. Houston, TX 77087

1BR / 1BA Apartment Complex, 29 units Offered at $834,000

Year Built 1955

Sq Footage 17,400

Bedrooms 1

Bathrooms 1 full

Floors 2

Parking Uncovered

Lot Size 27,219 sqft

NOI: $67,756

This Class C property consists of 29 one bed / one bath units in two 2-story buildings located in the Gulfgate area off 45 South and 610 - a very HOT area for investors.

19 units leased at $520 and $525 per month (gas & water paid). One efficiency leased at $500 per month (all bills paid). 16 of 20 leased units are fully rehabbed. 4 units rent-ready. 6 units need rehab (Est $3k materials each). Managed by tenant.

Estimated Proforma Value: $1.1M+ at 8% Cap Rate.

Drive by property, but do not disturb the tenants. Serious inquiries only please. Act fast if you are interested because soon I am going to refinance and finish the lease out. Financial statements available for serious buyers.

@Bryce Y. No I'll just refi and enjoy the cash flow until I sell it. I will consider off-the-market sales before the refi. Afterwards, I'll likely sell as the 365 days nears to save on capital gains.

Thanks @Jon Klaus . It's been load of work, but also a lot of fun to watch it near completion.

This isn't much of an update, but vacancy is 34% now. Interior rehab is 90% complete and exterior rehab is about 50% complete. Once exterior is finished and cleared by the city I'll finish up the last few interior units. It's almost time to start working on the refi!

@John Stover

That's a good start! I'd expand on it, but good start. E-Myth Revisited helped me tremendously on how to think about business planning. I can't recommend it enough.

I offer some caution on MF properties though, at least 5+ unit buildings. I bought my first one in April. They are appealing, but if you're trying to rehab a distressed MF property it will require a lot more precision. Your experience, team, and systems are vital with MF to take on the additional risks that accompany the potentially huge equity & cash flow returns. There was a big learning curve coming from SF home investing. Don't let this scare you though. It's just something to consider. Of course, buying a preforming property with a good management team in place is another option. It will cost more and usually have a lower yield, but the risks should be lower too.

@John Stover

Adding to what @Trenton Parks said, a clearly written business business plan with 1, 3, and 5 year goals should be defined before jumping in. First though, determine your end goal (E-Myth Revisited, highly recommended book). It seems to be cash flow related, but I'd put specifics to it.

With those things being defined and written then you can focus on strategy and production. Putting down 20-25% and using conventional financing is one way to do it, but its the biggest draw on your cash. If it were me, I'd go the creative route. You can do a lot more deals with creative financing than using your hard cash.

There are a lot of articles on creative financing on BP, but one easy way is to find a private or reputable hard money lender. Many will loan 100% of the purchase price up to 70% ARV minus repairs. If you buy your property 70% minus repairs (or cheaper!) then your out of pocket expenses are very minimal. Your cash can stay in the bank as reserves just in case things don't go as planned.

I have 1 full month's rent deposit on all my SF homes. But this apartment, the demographics are not having it. They'd rather pay $525/mo with no deposit than $490/mo with $100 deposit. Strange, but I'll take the increased income to pad the NOI.