All Forum Posts by: Alon Rokach

Hello BP folks.

I am looking to pick up a multi family distressed property in Rochester NY and would like to know if anyone has any good recommendations.

I live out of state, but have a property in Buffalo and am closing on another in Batavia, but heard there is great opportunities in Rochester. 

Any recommendations would be appreciated. 

Thanks in advance!

I put 5% for each cap ex and repairs. As far as I know unless the place is a dump then thats the going rate. But some people like to put a dollar figure.

Thanks for all the replies, it really helped. I have decided to go in super low and I set a ceiling...if we can make a deal, it will happen. Even at a super low offer I am not going to be getting $140 a door, but close to it. I think it's still a good starting point and I see potential in the property. 

At 8% cap rate it's so far below his asking that there is now way he will take it. 

Gonna make a low offer and go from there.

So I guess at $100-$150/door net is not that bad. Does that sound about right?

@Scott Anderson $300 per door...there is no way we can get that much. We are hoping to get $200 eventually. This property is in Buffalo and apparently thats the number people aim to get. 

We can raise the rents to market level, but it would take time and I don't think it would give us $300 a door.

@Jaysen Medhurst So you're saying unless I can't get close to $200 its' not worth it?

Whats crazy is this guy bought it for $155k 4 years ago, put a new roof and boiler, didn't increase rents (asked the tenants) and is now asking $279k.

@Jaysen Medhurst The issue is that there are not any multi family for sale in that area that is rented. I can try comparing to doubles I guess. The rents are just low regardless, for example, two bedrooms in the area renting for $825 and these are renting for $690. But minor things could add value. 

@Jaron Walling The seller did provide all the numbers and that includes everything. The $89/door is after all expenses and debt service.

Think of making an offer that gets us around $140/door.

Hi BP,

I am in the midst of potentially making an offer on my first property purchase, I was hoping someone could shed some light on a problem that I am having. Hoping to put in an offer on a 6 unit building and struggling to find the right amount to offer. The property is in good condition and doesn't really need anything significant except a new water heater in a few years. 

The unit is priced at $279k, NOI is $21,878 - debt service, which we estimate will be $1062. That leaves us with $89/door. Question is, what is the minimum that you would accept per door and how do you determine what to offer?

I know most people don't touch a property unless they are getting at least $100/door, but there is room to make improvements and raise rents. That being said, I know you buy a property based on what it is worth today and not what it could be worth.

Unfortunately there isn't much else in the area to determine a GRM.

Just want to make sure we don't offer more than what the bank will give a mortgage for the property. 

Thanks in advance!

Sorry to bring this post back to life, but I'm also looking for an agent in the Detroit area that is investor friendly. 

@Tommy did you end up finding an agent? How was the experience?