All Forum Posts by: Account Closed

@Julio R Gonzalez

Hi Julio, I got my 4 unit in Conroe by calling rental listings. I made reasonable offers to anyone that would be willing to talk, I think I came out of it with a pretty good deal—the owner was tired of being a landlord and it showed in the rental ad.

I'm interested how this worked out for you @Daniel G., did you end up buying this property and if so how did you structure the deal?

Exit strategy for 2-3 year bridge loan as down payment?  The numbers below reflect my best estimate WITHOUT bridge loan paydown.  Has anyone used a similar method, or can advise if this deal might be worth the risk?

I'm close to making an offer on a 20 unit MF in a Houston suburb.  It's owned free and clear, and the details of the situation lead me to believe the owner would be interested in owner finance.  

I have excellent credit, a 126k salary, plus about $30k of my own savings.  I'm interested in pursuing a bridge loan as a down payment for the property, then using my own savings as operating costs (emergency fund).  The property is 100% occupied, but I still factor 15% vacancy rate as the Texas standard.  Built in 1980's, some deferred maintenance, have not done inspection, I expect surprises--but since it is inhabitable I do not plan to make any value add changes until the bridge loan has been paid off.  My wife wants to manage the property, but I've factored in 8% as a contingency.    

Offer: 550k w/ 55k down

Closing cost estimate: 15k

Financing: 4.5%, 20 yr amortization  

Gross Monthly Rent: $9975

Yearly Vacancy at 15%: $17955

Mortgage paydown: $3131

2017 Property Tax: $9000

Yearly Management: $9576

Insurance: $3000 (really unsure of this number)

Utilities: $12000 per year (also very unsure of this number, I estimated high)

NOI: $5,342 per month

Cashflow: $2,100 per month

Hi Andrew, I’m curious which property you’re looking at in Conroe. I’ve lived in the area about 3 years and I’ve taken most of the smaller apartment owners to lunch to try and hear their experiences and how they got into the business. Actually, the MF buildings I’ve seen for sale recently have been at 8% or above, but that may be a fluke—and we are talking 8 and 10 unit buildings for what that’s worth. If you are still looking in the area, I’ve been working on 3 owners that seem like they’d be interested in selling, I just don’t have the capital to make an offer they wouldn’t laugh at. I’d love to help make a deal happen if I can learn a bit in the process. Cheers!