All Forum Posts by: Cameron Hayes

👍🏼 I appreciate that, @Jason D.!

Thanks @Andrew Johnson...definitely considering an offer on the value add of the 16 units alone.  This discussion has made me realize the slab may become a huge expense instead of a value add! 😬😳  

Thanks, John.  Very good tips.     I'm getting on the phone to call them now!

@Glenn Banks lol. Exactly what I'm thinking about the lack of a PM! Yeah, no competition, no PM, no history of occupancy or vacancies, no rent rolls, no P&L, no NOI, no CAP rate, no Proformano history of laundry income. About the only thing I have to go off of is gross rents!

The way I'm looking at it is I'm evaluating an empty 16 unit MF property that needs a PM (like yesterday!!) and rehab.  I'm not even considering the slab...IF, AND ONLY IF, the slab pans out to pass city approval, codes, permits, construction plans, drawings, ADA compliance, will it be a "value add."  Otherwise, I'm learning that a "value add" slab may actually turn into a huge expense for me with no ability to put units on it. 

Thank you for your reply, Glenn.  I know a slab isn't a building, hence the quotes around the word:  "building." :-P

Also, like I said, there are no property management records of expenses.  They don't even have a property manager and the owner lives in another state.  And, to complicate things, there are no other MF properties >4 units within 50 miles.  

I'd really appreciate the spreadsheet.  For now, all I have is an offer based on Proforma data and projected gross rents and liberally estimated expenses...don't want to offer based on JUST projections though, because I'd overpay for it by a lot.  

I am interested in a multifamily property, but I have no clue what it's worth. There are 3 buildings on site....1st building was built in the 1980s and has 8 units, 2nd building was built in the 2000s and has 8 units, and the 3rd "building" is a concrete slab, prepared for 8 more units. All units have been neglected by property management and need rehabbed. Obviously, the 3rd building needs to be constructed. Out of the 16 rentable units, only 7 of them are rented at $500/month. There are no records of expenses or any other way to determine the NOI. Once the property is rehabbed, the 3rd building is constructed, and occupancy increases to 95%, the gross rents will be $136,800/year.

So...how can I determine the value on this?

Since 2009, I have purchased, managed, and operated 5 single family residences and 1 multi-family 6-unit building. I am interested in going full-time in REI, but I don't want to be a broker, agent, or something else that requires a license. I am also interested in a job that pays $100K+ per year, with upward mobility or working for myself. I like working with numbers more than working with people. I am very motivated, determined, and hard working. I have strong administration skills, love organizing things, enjoy remodeling homes, love writing reports/proposals, and considering the art of the possible, thinking way outside of the box. I really like crunching money figures and finding creative ways to save/make money for others and myself. I could see myself doing Commercial Real Estate Appraisals or Inspections, but that's not something I'm passionate about. Is investing/flipping the best/only option for me? Is there anyone in the Hampton Roads, Virginia, area interested in teaching a budding apprentice? Does anyone have any advice for me on where I can go from here? Thanks!