All Forum Posts by: Brian Barfoot

@Erickson Sainval When you say there are many resources out there, which ones do you know of? The obvious ones like loopnet don't have enough properties in the area to give a good answer. 

Background: I have about a half dozen SFRs that have been successful for the last few years. I'm looking into picking up my first multi (I will give details about the deal in a separate post because I definitely have questions on how to put it together wisely) and it seems to me that the property in undervalued. It's a four-flat residential on the second and third floors with additional two business offices on the ground floor for 150K in a small city in upstate NY. The apartments haven't been rented in over a decade and need probably 20-30K to be fully rented but when they are they'd bring in roughly 3K/month. The plan is also to convert the offices into residences (another 10-15K) in a year or two which would bring another 1500/month or so. 

So the question: If this place brings in $4500/month all I need for the valuation is the cap rate. A previous post on valuation said:

"Find out the true NOI of the subject and then the prevailing market cap rate for similar properties." 

But I don't know how I'd find the local cap rate. I'm getting a commercial loan based on the purchase price but I'd assume I can refi the loan once the units are rented for a cap-based valuation. Can someone help me to figure out the local cap rate? Also, is it accurate that a commercial lender will reevaluate the valuation once we are fully rented if we want to take some equity? If this is a 10 cap it's a half million dollar property unless I'm missing something. 

Sounds much more precise (and honestly friendlier.) Good luck!

I agree with some of the folks above. Surname is optional but make sure your business name is a clear indication of your product/service. Cashmoneydough makes me think of a pawn shop which isn't that far from the wholesalers business so if you're ok with that sentiment then go for it. Just keep in mind the image it presents.

@Wayne Brooks I agree about the local aspect and even around here going down the road a few hundred feet to the next town changes things drastically. This is a first for me and so I'm looking for any edge from the hive mind.

@Jay Hinrichs It is commission based. There is a board as opposed to just a person unfortunately because I think if it was just up to the director he'd be willing to give it to me. Have you ever gotten a hardship variance in this kind of situation? If so what evidence did you bring? I did a little more research just now and there are even a few duplexes a block over in the same district so it's not like this would be unprecedented.

I found a house that used to be a bar/restaurant but the town changed the zoning to only allow single family properties in that area. If I can get them to give us a special use variance we should be able to get it fixed up, take the cash out, and have a nice cash-flow property with all of our money back. The trouble is the variance.

This town has a reputation for being stingy with them but I talked to their zoning director and he said that if there was ever a case that was likely to go through, this was the one. They are telling the current owner that he can not apply because he bought the place and knew that it was a single at time of purpose but that as the buyers, we could argue for financial hardship because no one would buy a 5100 sq ft SFR. We have lawyers on this of course but I was wondering if anyone had luck getting a hardship special use variance or tips to get one.

I would find another way to show that you appreciate them and their way of handling the hassle like a grocery gift card. Setting a precedent of reducing rent gets into slippery slope territory but a one time gift of something equally valuable has a different feel.

@Matty Bojanowski There are a lot of pros and cons. Being an agent takes some money initially and as has been said, takes a little while to build your business. There are also things that you might not think about (no health insurance, can not get unemployment even if you have no work) that are worth considering. I'm an agent as a supplement to my w-2 job and it's been a good thing for me for the last couple of years. I like being able to help friends who need homes and having direct MLS access and if I buy something for my own portfolio I can offer less since they won't have to pay a buyers' agent fee. Talk to some people who do it full time and get their full, honest answer and then decide if it's your kind of hustle. Good luck!

Welcome @Edward Francis! I'm in Syracuse too and I own a few singles in addition to managing a few more. It's been a good place for me over the last 4-5 years as an investor and we're looking to keep growing soon. I go to Rob Sawyer's meet ups sometimes so maybe I'll see you there next month?

Why not just draw up a partnership agreement now and include the property in the listed assets? Should be a pretty quick and easy thing for a lawyer to do.