All Forum Posts by: Account Closed

@Michael Bishop The current property management has let the place go, but being that I plan to sell after the renovations are complete, I was considering hiring an individual to take care of the property management rather than a PM company that will charge higher rates. With that being said, do you have any recommendations on this? 

@Michael Bishop I won't be doing the renovations completely alone, it will my team and myself doing majority of the work. Thank you for your input, here were my thoughts for the construction if you would tell me your thoughts:

Step 1: Start with replacing the windows, fixing the driveway, updating the sign & name, and paint the outside of the apartment.

Step 2 : Renovate the current vacant units, and as leases expire renovate those units as well.

Also,

It has a lot of tenants hanging around outside that may deter new better tenants from renting there. What is your suggestion for this, and what is a good screening process to use for new tenants?

I will check out the article thank you. What additional information would you need to know?

When buying an apartment complex that has been run down with unsavory tenants, what should be the process to turn the place around? There is 2 apartments with a total of 111 units. I will be renovating the apartments and getting new property management. It's not in the greatest location, but it's not in the worst either. It needs the single pane windows replaced, new outside paint job, updated sign, and each unit will be renovated (paint, flooring, hard wear, some toilets, tubs, sinks, cabinets, plumbing, HVAC, and wiring) in which I will be doing myself. It will be bought with a bank loan so I wouldn't be able to just get rid of all the current tenants because I will need to pay the bills. With that being said, how can I attract better tenants while renovation is going on and what would be the best way to go about the rehab operation? 

Thanks for your reply @Alexander Flores. I suppose if I can get it for the right price I can re-finance in a year and use that money for any repairs needed.

I'm looking at an 8-unit building and need help determining what price would make this a good deal. I will be glad to find out and add any information needed to help. Thanks!

Asking Price is 556k        Appraised Value "Sales comparison approach" 598k         Built in 2004

Decent location in the middle of town

All units currently rented "Units leased are 1 year leases" 

Unit A Leased Dec 2018 $775

Unit B Leased Sept 1 2018 $700

Unit C Leased Nov 2018 $900

Unit D Same renter for 3 years, month to month current rent $850, they are upping the rent to $900 in Feb 2019

Unit E Leased Oct 2018 $900

Unit F same renter for 2 years, month to month current rent $850, they are upping the rent to $900 in Feb 2019

Unit G Leased in April 7 2018- March 31, 2019 $700 

Unit H same renter for 3 years, month to month current rent $675, they are upping rent to $725 in Feb 2019

Total current income = $6,350   After rent increase next month income will be $6500

Expenses 

- Tax $817

- Est. Insurance $709

- Garbage $225

- Lawn $150

- Utilities Tenant pays

I have not had the place inspected, but I've seen pictures and figure around 15k in initial repairs. The roof will need to be replaced within 6 years, and assuming a few other things as well. What is the best way to conclude an offer price? How much should I figure in for cap x and repairs is a big one for me. What's a good price per unit to set aside assuming everything's in good condition when you buy it and you can do the repairs yourself? 

Walk away or make it happen? Thanks for any support!

Thank you guys for the replies and your input on things. After I talk with the seller, do a  walk-through and evaluation of the houses, and crunch some numbers I will get back with yal @Stephanie P. and @Jason Hirko much appreciation! 

What percentage  would I have to come up with? If I can't get the money on my own what are my options to offer any investors that I may find? 

If he's serious about selling and the numbers are right what are my best choices for financing? He's not interested in seller financing, so what's the best rout to take. A portfolio loan, conventional loan or commercial loan? I was thinking of a 13 month contract with the co-signer for time to refinance and reimburse any money with a percent interest added. Is this a good idea or are there better options out there. thanks for your reply @Kevin Christensen

I have not got the exacts on anything yet it just got brought up in a discussion we were having that he was interested in selling his properties. My dad has done work on most and they are all great homes in good locations with the exception of 2 that are in lower end neighborhoods. I would estimate they're worth to be around 1.5m and I'm looking to pay 1-1.2m at 20% down would be 200-240k. I could possible come up with that much on the low end 150k which would put my friend in at 50k with co-sign.