All Forum Posts by: Joe Guz

i guess Im not getting your point...That is the exact same thing I look at for residential properties(NOI CAP). Also, if I could have him do it at his expense and just roll that in the mortgage (saving me cash out of pocket) while at the same time increasing the value of the home, how is that a bad thing. Please let me know if Im mising something
As for the cash flow trippling it would---there is 11k spent pr year on gas. I realize rents would be lowered some but not much as the rents are currently below value for that area
Im not trying to be confrontational, Im just trying to figure out what you mean. He is ditching the property, already said he will do the 2k of roof work needed and said something can be worked out w/conversion if he gets close to asking---I might be missing something your explaining, as Im new to commercial

Have you purchased multi-family commercial before?

I would worry less about the utilities at this point. Focus on keeping the utilities exactly the way they are presently and figure out what the property is worth given the current income. If you can change the use later all the better but that future value should not change any bid you might make. Pay for what it is and not for what it could be later.

I would not rush to buy unless you have a due diligence phase where you can complete your homework. Review of leases, review of the structure, estimates for work, checking with the city as to any issues or zoning changes, etc. Lots of homework if the seller is willing to deal. If they are getting divorced they might not need to completely sell out their stake for cash. They might only need enough to pay off the soon to be ex-spouse. Hence seller financing can work. If you go that route you can tie the financing into any upgrades or conversion events.

John Corey

well I have 5 multi fam properties but all 4 unit and below, this property is worth about 415k right now, It is barely cash flowing right now 61k a year expenses(incl mortgage, tax, ins8% mgmt fee and vacancy, gas elec, repairs etc.) and 68k a year in rents/laundry-- that may sound ok but where I live I make more profit on my 55k duplexes a year. The seller is selling all his properties in the area, and he is not willing to finance---I have punched all the numbers already, this is in one of the trendiest areas of the city, once util are switched over it will cash flow about 18k a year

i agree totally, I have one property where I pay utilities and they keep it hotter that the gates of Hell in there, thats why I wanted a guestimate on switching over. I dont own the property, I was going to bid on it today, They only have showings 1 day a week and yesterday was the first showing, this house wont make it another showing w/out selling, thats why I wanted to get a rough estimate how much it would cost...
i m thinking of putting a higher bid and stating I need the util switched over paid for by owner---the owner is going through a divorce and he needs to sell so it may work...i hope anyway. I asked the realtor to give the prop manager my # so he can call me, that way I can get all the info I need and pass it along to my contractors to give me a more accurate price
ty
Joe

i am looking @ a 10 unit where I would have to pay gas--it cost 11k a year---has anyone converted an apt to separate heat? any cost estimates---

I own 5 properties now and I wat to get an LLC---what/where is a reputable place to get one? How much can I expect to pay? What kind should I get. I own a single, 2 doubles, tri and a quad if that helps. I live and own all in NY--are these places online legit? Any info apreciated

I own a property about 45min away..I hired an electrician to do a minor job and the tennant and I agreed upon a time...he was not there but left a note that said Ill be back in 1 hr....to my dismay, the electrician waited. Here is the even worse part...the tennant never showed up....what can I do...am I still obligated to fix this (light fixtures in bathroom). It cost me cash sending the guy out for nothing---Im soooo pissed and dont know what to do

ok, I feel bad about this a little bit and I want to know if anyone knows how to do this properly. I am a mailman and I learned about a gentleman on my route that passed away. I know his mother lives nearby and I could get her number easily. The house is in rough shape, but in a great area of town(perfect rehab). What should I do about contacting his mother--what do I say?

why...was it his responsibility to pay?
yes, I do know where she works

ok, here is what happened..we evicted a tennant and she left. She destroyed the apartment. how do I go about getting my $$ back...My property manager said there is nothing we can do w/out her current address. "THE GIRL WE WERE GOING TO EVICT WOULD HAVE BEEN MY
RESPONCIBILITY DUE TO THE FACT THAT THE DAMAGE WAS WHILE I OWNED IT. IT IS BASICALLY MY LOSS AND I AM TIRED OF
DEALING WITH THIS HEADACHE ANYWAY"Also, this is what he charged me to file the eviction--Attourney fees for filing eviction and papers served(total fee was
$425)($300 was sent for partial eviction). Is that about right. Now, he said it was his loss but we evicted her 3 days after I owned the place and I paid and fixed all repairs--Is that how it is supposed to go

i was hoping I didnt have to take equity out