All Forum Posts by: Account Closed

@Andrew Ware

Can you explain a little more about the "entirely different tenants" and how you factor that into your property analysis?

True, I currently live out of state, but most of my family is in Maine. In fact my mother grew up in Gardiner and my family has deep roots in the area. My wife went to school in L/A and we are planning on moving back to Maine over the next few years. 

Thanks in advance for your advice and help!

@Ed Emmins

Buying an option is a great idea. What would that upfront cost be on the $240k?

I think these are great investments that have solid unit economics. LA doesn't have great appreciation, but over the long run I think there is strong cash flow from the college students and rents are increasing. 

Any thoughts on doing seller financing by offering them $20k/yr for 20 years?

Hi @Ed Emmons, thanks for reaching out! 

They are both in the LA area. 

I see you have 130 units and a ton of experience so any guidance would be greatly appreciated.  

Thanks again!

@Joel Kadlec 

Yes, each building is $240k.

Yes, each building is $240k.

Hi BP!

I am analyzing two properties in the same town as I am interested in purchasing one or both for my first REI. All of the data has been provided by the owners.

Here are the numbers for the two properties: Two Property Analysis

Location: Maine - College Town - 6 colleges - 6,000 students

Property: Both are 10 Unit buildings

Local Cap Rate: 10%

Financing: This is the area I am weakest, but I believe I have four options:

1. Save up for the ~$88k down payments ($44k each). This will take me 2 years, but I can be pre-qualified for $700k based on income and little debt. (the deals will be gone by then)

2. Find Private Money Lenders to raise the $88k down payment (and hold in account for 90+ days), give them a 7% ROI and a 20% carry on the cash flows for 5 years. Not sure this will work from what I have read on the forums.

3. Find Private Money Lenders for 100% of the purchase price ($240k each property)

4. Seller Financing similar to PML if I can negotiate this.

Your thoughts are greatly appreciated.

Thank you!

Jamie

Welcome Chad!