All Forum Posts by: Billy Guyette

Matt, I would like to join you guys, just depends on work schedule for that day. 

It's in the Capitol Heights neighborhood. The area has been improving for several years now but lately with downtown's revitalization, prices and enthusiasm for the neighborhood have gone up. 

Preparing for the worst, I think electrical, plumping, and HVAC need a complete overhaul. It currently has window units so  central hear/air alone will be $20,000. 

I have a 4-plex in Montgomery, Alabama that I'm seriously looking at but reluctant to pull the trigger. It's    currently off market but the owner has agreed to sell it to me for $83,000. It's currently in disrepair and will  need roughly $130,000 to make rentable. Each unit is 1 bed 1 bath and because I have other units in the area, I know I can easily get $600 per unit. So I'd be all in at $213,000 with gross rent at $2,400 per month. Does this seem like an okay deal? I know it's not the best but because of the area it would be a solid buy and hold. 

 Why don't you out right sale a couple of the properties and consolidate up to a larger property. This way you get 100% of your equity out, instead of just 75% or 80%, and you have access to bigger deals. 

David, I have some experience in smaller multi-family properties  (6-40 units). What I've found, especially in class C or D areas, is that strategic and focused management is the life blood of the property. Without sound  management in place, the property will never maximize  full potential. I know you're not investing in your home area, so if the different financial  metrics work, a thorough  vetting of the management company should be your next step. 

In most markets, "marginal areas" are where the money is made. 

Whose name or names would be written on a title for a joint venture where the investor is bringing in all capital? We're forming an LLC for this particular property .

Thanks for the replies. Alexander, I'm sure you're right. Banks almost always want to see some money no matter how good a deal

If I'm looking at a commercial property that currently appraises for $1,000,000 but able to buy it for $800,000, would a bank lend 100% of the purchase price? This is assuming the underwriting is based on 80% LTV.

I'm from Montgomery so I'm not too familiar with the Birmingham market but what about the area between UAB and Vestavia Hills. There seems to be a lot of small apartments complexes there, it seems like a good area for appreciation and cash flow. Some of the properties have a lot of deferred maintenance and appear to be mismanaged.