All Forum Posts by: Matthew Vos

Hello All,

   I am currently under contract on 118 apartment units in Wichita, KS for $2,295,000.  Basically $19,000 a door.  It is a bankruptcy deal so there is a bit of hair on it, but overall pretty clean.  They are all 1 bedroom units and I am thinking of converting a portion of them into 2 bedroom units and would love some advice/formulas investors have used to calculate if this is a good idea or not.

   I am also looking for some partners on the deal as I am looking to raise $1,000,000 in cash and have the financing already set up for $3,300,000 with me being the guarantor.   My plan is to buy for $2,295,000 and do $1,000,000 in rehab.  Bank has approved me at $3,300,000 putting $950,000 down and that would give me $1,000,000 in rehab draws.

   Once complete, I am estimating about $50,000 a month in income and a property value of about $4,200,000.  

Here are the details:

1. I think occupancy on all 1 bedroom units is around 80% when I am done remodeling them and fully stable.

2.  If I am doing rehab anyway, knock down the wall separating the 2 units, make 1 big kitchen in the middle instead of 2 smaller kitchens.  Then try to increase my occupancy to 95% with a mix of 1 and 2 bedroom units.

3.  Average 1 bedroom rents are around $495 and average 2 bedroom rents are $825.

4.  Currently occupancy is 50%.

    I would love all feedback and formulas that people have used when faced with changing bedroom count in an investment.  I currently have 95 rentals, mainly smaller apartments and single family.  Look forward to getting some thoughts and feedback.

Lately, I have been doing a lot of research on the effects of the 2016 election is going to have on the current housing market.  Many articles suggest, when there are two candidates that are neck in neck in poles, that the market is hardly effected by the election.  However, when there are two radically different candidates, people are more hesitant to make a drastic life decision.  Obviously there is more that affects the housing market during election years, but this is the variable that stood out the most to me. 

My question is, with Denver's astronomical economical growth, how will this election affect our housing market? Considering how many millennials Denver has, how do you think they affect the housing market during the election? Or do they have any effect at all?

I am interested in hearing your thoughts about this topic. 

Thank you both for responding. For us, it just seems that Fix N'Flips margins are just so much narrower than what they used to be.  Unless you have a deal similar to what Scott talked about. 

Matt,  we have several investors that we work with.  One of our investors being a hedge fund out of Chicago that own over 25,000 properties across the US.    

There is no surprise that the Denver market is exploding right now.  So many people are looking to get into investing in the Denver market, and find that Fix N'Flips are the best avenue to do so.  As an investor with over 65 properties in the Denver area, this is mind boggling to me.  

Hi, my name is Matt.  We are an investor focused real estate group that prides itself in being experts in the current Denver market.  We are constantly doing research and investing our own money into the market, because we believe in it.

Atlas started in 2008 as a Fix N'Flip company.  Between 2008-2009 we did over 550 flips when the housing prices were low.  Now that the prices have skyrocketed, we have adapted our strategy.  Currently, we are encouraging our clients to consider buy and hold.  It does not satisfy those who need instant gratification, but it does satisfy those investor savvy buyers that are looking to build long term wealth.  

What is your opinion on this topic?  Are you still finding solid deals and making good margins on your Fix N'Flips?  What are your concerns about buying and holding? 

I would love to hear what other investors are thinking about this topic. 

-Matt

Check out our website.

Mark,

Thanks for the introduction.  It sounds like we share the same passion for real estate.  I work at Atlas Real Estate Group and we manage over 1,200 properties just in the Denver market, and have a multi-million dollar portfolio.  I tell you this not to brag (at all), but to let you know that we really are experts in the Denver market.  If you ever have any questions or need some help acquiring more properties, I would love to speak with you via email or phone.

Thanks to you all! My partner Jason Shepherd has left voicemails for both @Colin Smith and @Norberto Villanueva. 

Hello all - Atlas is looking to hire an experienced broker with investment experience to launch our Colorado Springs expansion. Any recommendations? We appreciate any and all networking opportunities. Thanks!