All Forum Posts by: Amit G.

Could people familiar with Hershey, PA chime in on what's the prevailing CAP rate for apartments?

Hello BP'ers, I am looking for some recommendations on a Property management company in and around Harrisburg, PA area that you have personally worked with.  I see there is no easy way to find this information with just a google search.  And while we are at it, I'll appreciate if I could also get some recommendations for a General contractor that could take on some medium rehab on a small-medium multi-family in our area.

TIA!

Great work @James Gates! Congrats... 

Would you mind reiterating your rehab breakdown here if haven't already done so?  I am curious as 18k sounds like a very reasonable number for inside outside rehab.

Could someone local to the area provide some insights into how this part of York county, PA is faring?  Is it too risky to buy anything in this area? On my research I see that this specific borough has a population of around 1000 and is 0.3 sq. mile radius,  but is in close proximity to Lancaster and York.  

What all factors should be considered for this kind of micropolitan area? 

Did they do 75 or 80%, of appraised or ARV?

@Matt Motil can I get the numbers on this at [email protected]?

@Mike Ipsen I would bump the Cap expenses to 10% and vacancy to at least a decent 8%.  I also see that you have not accounted for Trash and Sewer.  How about water, electric, gas etc.? Does it mean tenant is responsible for all utilities? 

I don't see it as a deal specially with IRR of a mere 6% with numbers you have.

 These loan terms look pretty good.. Would you mind sharing who the lender is?

@Kyle McCorkel a little adjustment to your cash flow numbers. I think you need to calculate Management as 10% of the (Rent - Vacancy Allowance) i.e. ~ $110, so that further increases your cash flow a little.  PM shouldn't be charging when property is vacant.. It's true that it's all estimates and probably they charge half a month of rent to place tenants which is probably part of this..

@Kyle McCorkel  Really impressive! It's amazing how things work.. Congratulations and hope to see you succeed with many more to come.. Keep us posted.. 

Would love to get some references from you on the PM and contractors that did such an awesome job!