All Forum Posts by: Christina J Allen

I will be starting my first high paying W2 job in April and I fully intend to use my salary to buy my first investment property this year. I know my tax bracket will change and I am trying to be proactive with the use of my funds. Does anyone have a recommendation for a CPA that can file my taxes as well as help my husband and I strategize the best use of our W2 in order to save on taxes? Its important to me that they are knowledgeable about the FL tax law and are willing to teach.

Also, I heard in searching that I need to interview them, what do you all look for when interviewing a CPA/tax strategist?

Thank you all in advanced.

1 Vote

Orlando, Florida

@Oscar Perez

P.S. I am from Canton, Ohio originally and I plan no buying my first multi in Dayton, Ohio! Maybe we should keep in touch. Be well !

4 Votes

Cleveland, Ohio

@Scott Mac This response is the most realistic and thorough one Ive come to read with. Much like @Oscar Perez Im also looking into Multifamily investing and I am a physician assistant. I am fortunate enough to have found a job that will pay my school debt or else my funds would have been tied up. I am currently working on a plan to build up to the funds that are needed to get my first multifamily and I plan on starting unlicensed group homes to make that money as soon as possible. Maybe this would be a great starting point for someone else who doesn't have the income to "go big or go home".

@Oscar Perez Best of luck to you! Id love to hear more about your multifamily journey.

5 Votes

Cleveland, Ohio

Quote from @Frank Greg:

@Christina J Allen:

...I am having trouble with estimating the ARV of a multifamily property. I have watched a few BP videos and I get the concept but its hard to find "like" properties of a unique multifamily in a certain area. I read that you should call the realtor and ask for their insight as well. Any advice on how to do this?

Much appreciated,
Christina A.

There is a slight variance in approach when trying to determine the ARV of a SFR and the ARV of a multifamily (income producing rental).

For a SFR, you are using a variety of data sources to get the comps for an area (such as market price per sqft) but with a multifamily, you are not necessarily looking at price per sqft or "like" properties per se, rather you initially have to determine the rental price & cash flow per unit from which you can then work backwards to ascertain or derive value.

Also, unless you have a property under contract, the opposite of attention is what you are typically looking for in regards any deal so you may want to learn as much about ARVs as you can -- fast!

Thank you for your insight. Starting with the rental price and cash flow per unit and working backwards to determine the ARV makes the most sense to me so far. Especially since I don't have any fancy software (aside from BP calculators) to analyze this property. This particular property has been on the market for 450 days and has gone under contract multiple times. I agree, If I want this property I need to learn quick.

0 Votes

Quote from @Nicholas Burch:

Depends on the agent and their goals. I want to work with the investors so I will provide you with my time even if that means I do not get immediate business. At end of the day, I want to be the first person you call when you need a second opinion. Once that relationship is established you will likely tell your friends about me and they may tell their friends until one of those recommendations converts to a closed deal.

A mentor of mine once told me, ''the world of real estate investing is not checkers its chess''!

Great way of looking at it!

0 Votes

Quote from @Nicholas Burch:

Absolutely, you should reach out to a realtor. We have access to tools and data that you would otherwise have to pay a pretty penny for. With that said, not every realtor knows how to use them to get the information you want. And not every realtor is willing to spend time helping you underwrite deals.

Since I am an investor myself, I do not mind helping or giving advice!

Do you think the realtor would be upset if I take up their time getting information from them for free and then I decide its not a good deal based upon the information they gave me?

0 Votes

Quote from @Joe Fritton:

I am a commercial loan originator. Although comparable sales are wonderfully straightforward, they are super hard to find for commercial properties.

When I'm analyzing a deal for my clients, I use the methods below to estimate the ARV:
1. Entrepreneurial Profit - A bare bones, dollar for dollar, return on investment in a commercial rehab can be estimated by applying a standard 15% to 20% "entrepreneurial profit" to the cost basis of the deal ((purchase price + CapEx) * 1.15) Note, cost basis is generally just the purchase price plus the total budget, but it can be good to include the total cost of capital as well. This is a low ball, worst case estimate, but it's the easiest.

2. ARV per market average cap rate - this will give you a more attractive result for your ARV, but you'll need to do more homework. Commercial property value = NOI / cap rate. That's a simple equation, but you need to calculate a proforma NOI to get an ARV. To get the improved NOI, you'll need to have a firm understanding of improved market rents after rehab, direct expenses, future tax and insurance costs, etc. Once you have a reliable proforma NOI you'll need a reliable cap rate. You can often find good info from a Google search, but just as often you can't. If you can't find a good local cap rate online, then call a couple of local commercial R.E. brokers to get their advice. It's also very valuable to build your network, so don't be hesitant to call people. I also recommend stress testing the deal by adding another 1-1.5% to the cap rate.

Best,

Thank you! @Joe Fritton! This is good to know in order for me to break this down! It seems slightly overwhelming. But Im thankful that your perspective gives me guidance and something to actually do!! I appreciate your insight.

0 Votes

@Justin Rademacher That would be incredibly helpful. As a newbie i need to surround myself with people who have done this before. I will certainly DM you. Ive had my eye on a property for while now. Im not ready to buy but Im trying to learn what it would take before I make a move. Calling realtors will be a crucial first step!

0 Votes

Hello Bigger Pockets!

I am a newbie with an interest in Multifamily properties. I am currently learning to use the BP calculators to evaluate whether or not a property is a good deal! I am having trouble with estimating the ARV of a multifamily property. I have watched a few BP videos and I get the concept but its hard to find "like" properties of a unique multifamily in a certain area. I read that you should call the realtor and ask for their insight as well. Any advice on how to do this?

Much appreciated,
Christina A.

1 Vote

Hello @Patrick O'Sullivan !

It is good to hear from someone else in Volusia County. I live in Orange City and I have interest in rural investment as well as housing for the elderly. I would love to connect with you, learn and add value to you as you reach your goals!

Welcome to the BP community and great job avoiding the scammers..Ive evaded them as well!!

0 Votes

All Forum Posts by: Christina J Allen

Christina J Allen has started 4 posts and replied 20 times.

Post: CPA / Tax Strategist

Post: Starting my real estate journey with an apartment complex

Post: Starting my real estate journey with an apartment complex

Post: ARV for a Multifamily Deal

Post: ARV for a Multifamily Deal

Post: ARV for a Multifamily Deal

Post: ARV for a Multifamily Deal

Post: ARV for a Multifamily Deal

Post: ARV for a Multifamily Deal

Post: Patrick from Volusia county Florida