All Forum Posts by: Cedric Zebaze

If you look st the model of supply and demand. Supply of duplex is very low less than 10 maybe. What are the odds that one will pop up on the mls? Then assess would that even been a good deal? Then if you are proactive targeting duplex owners what would be your success rate?

Then compare those probable data with your SFH.

You’re going to get your answer.

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This holds true. Rehab homes/ New C are sitting on the marketing for wayyy to long.

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Thanks!

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If you buy right and is creative, you can get some cash flow + appreciation in Manayunk. You heard it hear first.

1 Vote

Philadelphia, Pennsylvania

Originally posted by @Kyle Mitchell:

There's no doubt economies of scale come into play here as you mentioned. One of the major factors that I see is the professional management available for 5-20 units vs the larger multifamily. Typically these smaller properties do not generate enough income to make it worthwhile for the professional management companies to manage. Therefore, people end up either self-managing or hiring an under-qualified manager like one who mainly manages SFR's. SFR"s and MF are two completely different animals. In this case you not only have an under-qualified manager but are likely also paying higher wages for service calls and maintenance because there is no in-house staff so you are paying a premium.

Very true, I wouldn't want to be a bottle-neck in RE journey by being in my business.

Another great reminder, Thanks!

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Originally posted by @Brian Burke:

Notwithstanding your already fine answers, Tyler--my guess is the owner profile of 5-20 unit properties has a higher concentration of investors who are stretching the limits of their financial capacity and management skills. In other words, owners of single-family might not have tons of cash reserves nor management experience but the properties aren't complex to operate so they do OK. Owners of 20+ have earned their stripes and are more likely to have experience or capital, either of which can soften the impact of negative events. But some owners of 5-20 are in expansion mode, oftentimes borrowing against other property to buy more units, compromising their reserves, and pushing their comfort zone before they are ready. Nothing wrong with that, really--it's part of the right of passage to growing your portfolio and skills. I always say that if you can survive the mid-size property phase of your career you'll survive anything. I have no stats to back any of this up, but it's my best guess/observation from 30 years in the biz and having bought hundreds of foreclosures.

Makes sense. Based off my personality, I rather endure that pain by acquiring SFH then. Great insight!

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@Andrew Fernquist Thanks for the info

@Tyler Kastelberg good idea and thought process. Basically, I should grind and pick up sound SFH investment rentals, while finding ways to earn more and save more.

So What's the happy medium of the amount of hard earn $$$ to invest but also "catch the eye" of a top producer in a large scale syndication?

I would hate to be just " number" but would like to gain graceful experience and respect.

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Hey Bp!

In the future(5 years+), partnership or myself, I would like to be qualified with a portfolio lender to finance a 5+ unit.

What are the financials and track record requirements that lenders like to see?

What is the typical LTV?

I researched and it's seem commercial lenders are more lienet and focus on the deal but can be expensive.?

Which lenders can you recommend?

About me:

Income -$80k-$110k
Credit score 700
Liquidity: $30k
Currently have 1 rental, looking to close a duplex - fall 2019 .

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What's the construction budget? and/or did you close?

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Philadelphia, Pennsylvania

What pulls higher rents is a combination of

Location

Block/City curb appeal and does it "feel" safe
Parking- double side or single side, easy parking around
Convenience to transit, coffee shops

Livability

Quality space for multi roommates(3+)
Storage for junk
Closet space " important"
Modern feel of the bathroom and kitchen, does it "feel" new
Easy to move in?.."no spiral steps"
Washer, dryer, AC, microwave, stainless steel, etc included

Service

Rentals listing look professional managed, quality photos
Timely Responses
. Offer Discounts on rent for 1 years or less, build the trust first and inform them up front they will get charged premium rent the following year, if they are happy with the service and will locked in that rate till termination of lease. (I'm testing this out now, renewal date in September.)

Top to bottom

@Maneesh Joshi

2 Votes

Philadelphia, Pennsylvania

All Forum Posts by: Cedric Zebaze

Cedric Zebaze has started 5 posts and replied 25 times.

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