All Forum Posts by: Chris Hair

I've been wondering the same thing about the KC area.  I've tried looking into on Google, but can't find anything specifically addressing whether or not KC is landlord friendly, coddles the tenant or is somewhere in the middle of the road.  

Andrew, thanks for taking the time to respond.  As you can see, that was my first post and thus this is my first rodeo when it comes to real estate.  Please forgive the naivety or stupid questions/comments.  I'm still in the early stages of learning.  

- If they happen to be students, does it matter if they're in the property 9 months of the year if they're signing a 12 month lease?  I know 9 month leases are available, but if that's requested, can't the rent be increased to partially compensate for the potentially vacant months?  

- Students are likely going to be hard on the units, so this is something to consider and talk to the current property manager about.  

- I'll have to look into other MF units in the area to see how they're priced.

- I was thinking about doing a conventional 20% down loan.

- I'm embarrassed to say, but I'm not really sure how to effectively estimate what the DSCR will be at purchase price. It seems that it would be >1 but I'm not for sure on that.

I hope it's not against the rules to ask questions about a specific property but I'm looking at the following apartment building. It's currently located less than a city block from a major state university. Looks to be in decent condition (referencing pictures only at the moment). It's showing a NOI of $29,608 so the Cap rate should be about 8.4%. Not sure where they're getting 9.65. At first glance, assuming the building/units need only minor repair, would this be considered a good deal?

Price: $350,000 No. Units: 12 Building Size: 11,979 SF Price/Unit: $29,166.67 Property Type: Multifamily Property Sub-type: Garden/Low-Rise Commission Split: 3% Cap Rate: 9.65% Gross Rent Multiplier: 5.74 Occupancy: 90%