All Forum Posts by: Marco Campos

I am planning to visit Cleveland Aug 2-3. I would like to make the most use of my time in knowing the market and networking with real estate friendly professionals. If you are a wholesaler, contractor, property manager, loan officer, and other supporting professional please reach out to me and let me know if you are able to meet and chat.

My near term goal is to acquire residential properties, not to exceed $150K cash, that the BRRRR strategy can be applied. For single family houses, I plan to use the Homestyle loan for rehabs, for 1-4 units I will use my own cash, and finally I will also like to do market research on bigger properties not to exceed $1.2M. While I will not buy large properties immediately I do plan on moving into this space by next year unless something makes sense now.

Any advise on neighborhoods to visit or leads to professionals that support real estate investors please let me know. Thank you all for your time in advance.

@Joel Owens To be specific its a 24 unit building at $700 per door going for $775K in a C class neighborhood. My current 4-plexes are in C class neighborhoods and have cash flowed well for 6 years and all I have done is simple decision making over e-mail with my PM. However, everything you say regarding potential and likely low cost renovations to flip and sell to less experience sellers is certainly true. I personally managed the renovation of my current investments by writing the specifications and managing the renovation in person. I really appreciate the input, makes me think deeply about other factors in the deal. 

@Lane Kawaoka I currently own 4-plex units on the west coast and live in NYC. These properties have cash flowed well for me and Its been near passive as all the work I have done was relative decision making for the more costlier repairs. I always seem to get good tenants and rents just keep going up. Maybe I am just lucky with the PMs.

@Scott Anderson In NYC we have employees who take out the garbage weekly and clean the building halls and common areas frequently so I expected something similar for these apartment buildings. I also figure repairs to bigger assets would be much more complicated such as the mechanicals. However, I am still getting experience as I help others.

@Lane Kawaokaundefined

I currently own residential multifamily properties that are near passive income investments. My property manager handles minor events and I respond with decisions for major events such as a repair that exceeds $1K. I am looking into purchasing a 20 unit apartment building in Cleveland that has been completely renovated. I would like to get insights on how active are out of state investors involved in managing large apartment buildings to give me an idea if I should get involved with this larger asset. 

In my assumption, I believe it would be just like owning residential multi family properties except that I would have a higher volume of interaction with the property manager. Yet, I would like to get insights from experienced investors.

Questions for the discussion:

How frequent do you interact with PM for your apartment building?

What are typical fees for managing your larger property?

Do you have someone living on site because its required? 

What else must  I consider/plan for managing this larger asset from out of state?

Thank you all for your time in advance

Hello BP Community,

Does anyone know a lender that offers the following terms for a 13 unit Apt BLDG?

10 Yr term, 30 Yr amortization, interest rate at market rate, and 20% down for a $400K loan ($500K purchase price) Property is located in the state of Ohio.

@Steven Gesis

Thanks for the advice. Interestingly enough, this property is in your neck of the woods...Lakewood, OH by Lakewood park.

@Jen Hoang

Like Steve said, they are rare but markets like Cleveland and Kansas City has them.

@Jay Dewberry

I am a passive investor so this commercial property is a turnkey. The low end is about $650 for 1 bd and $750 for 2bd. The property is fully occupied and is in a good location so it should be easier to get tenants. All that checks in my opinion. However, my investment goals are to have as close as possible to 20% CoC w/a good chance of appreciation.

@Simon Cox

9% CoC is a bit low for my goals. I was thinking of offering $470K w/$10K closing as best and final. How does that stack up in your calculations?

Looking for feedback on the possible deal below.

This property is in a B to B+ Neighborhood.

13 Unit $490,000 (loan would be 5.5%, 10 Yr, 25 Yr amortization w/20% down)

9- 2 Bdr and 4 1-Bdr (2 bd apts range from $700-750 and 1 bd apts $600-650)

Gross Rents $108,000

Taxes: $16,700

Insurance $4,500

Utilities Est $20,000

(Includes Water, Sewer,Electric,Gas,Trash)

Management 10% Est $10,000

Vacancy 5% $5,500

Maintenance Reserve 5% $5,500

Net Est $46,000

Thank you for any feedback or ideas in advance. I want this property but I need a sanity check. I adjusted these numbers (increased) from the original pro forma to be as accurate as possible.

Hello all, I need ideas/help on my next real estate move.

I have excellent credit, $150K salary, Aproxx: $450K net worth, and $150K cash. I have 3 years experience from owning a mega cash flowing 4-plex and just purchase a cash flowing SFH (2 loans total). Est at $30K in total cash flow.

I am leaning down 3 options:

A) Buy an apartment building. Can anyone give me an idea of what I can afford based on my stats?

B) Expanding via the residential properties...max out 10 loans then kick in the snowball effect of paying them off.

C) Searching for a good partner(s) to buy an apartment building since I have little commercial experience.

My goal is to build the most cash flow w/some hope of appreciation.

FYI, I Ultimately want to get my MBA in Real Estate and move into apartment buildings or other large projects (major passion for real estate). I am just not sure if I should make the jump now. 

Thank you all for your time in advance.

I am looking into buying a few SFH that cost around $50K-60K but after the down payment it would be sub $50K. Anyone out there know of a mortgage professional that offers loans for this category? I am looking for the standard 20% down payment and market interest rate. I've had offers full of origination points, super high interest rates w/40%+ down payments. I have a 740 FICO and make six figure income.

I have owned a 4-plex for 3 years and it cash flows $2K+ a month (Los Angeles). I would like to reach my first goal of achieving $5K a month in passive income. I ask members advice/ideas/inputs/or even deals to help me with this quest. Would any of you recommend just buying SFH until I reach 10 and then start paying off one at a time or stick to multi unit properties (preferably triplex/quad) to grow my portfolio. I am currently looking at 3 markets, Atlanta, Indianapolis, and Kansas City. They seem to be affordable (under $300K) for quads and under $150K for SFH, which is very doable for me. Little more about me, I gross $150K a year and have saved $80K. Last thought is that I know there is a cash reserve requirement so to me it makes sense to get 4 multi unit properties and then I can do SFH but maybe I am missing something and that's not a good idea. Appreciate any and all inputs.