All Forum Posts by: Cory Lucas

@Anne Abrams I forget the specifics of what it's called, but you can setup an LLC to where they all go under the same LLC but you can branch off with each property so it's basically it's own entity and the others you have will be protected that way...

@Johnny Dlcrz the CPA is the professional in my opinion, like @Scott M. said you'll probably get a 50/50 split on whether it's good or bad. For one in my opinion it doesn't cost that much to setup and I'd like to think your CPA knows your situation far better than we will be able to deduce via this post. 

Initially I thought, eh 2 properties, not that big of a deal to setup, but then we got further into it and you revealed you have a construction company and a salon to protect, so yes it sounds like your CPA is doing their job and looking to protect you. Not that much of a cost or time to get an added layer of protection, I'm pretty sure the tax incentive thing though is a myth, taxes work out the same way whether it's setup in an LLC or not, but I'm not a tax professional, just basing that off my situation and what I've read. Best of luck, hope that was helpful

Awesome info @Adam Lacey, thanks for the feedback and the time

@Justin Dyer thanks for some insight and your thoughts! Sounds like you’re well on your way to creating some wealth with what you have going, good for you!

Anybody got anything? Just really hopeful to hear from someone in the MultiFamily arena. Thanks in advance for the time

Anyone got any insight?

So, I'm currently looking for SFH and would eventually like to venture further into MFH, I currently have a duplex, but I'm trying to educate myself further on MFH before I really get active with it. That being said a wholesaler sent me this on a MultiFamily property and while I feel it's got potential I feel a bit lost on other questions to be asking. This has been the email communication so far. The first chunk was the initial email she sent, I replied asking about leases, expirations, how much they pay, and how many units are currently rented. The second piece starts where she replies "Hi Cory"

What else should I be asking? What questions would those of you in the multifamily space have with this info? Trying to learn and heck, who knows maybe I’ve got my first multi here…

Thanks in advance for reading and providing any feedback…

This consists of 3 full brick buildings.
12 units, all 2 bed/1 bath units.
There is 1 common laundry in each building in the basement of each building.
Each unit has a storage unit in the basement plus one storage closet for the owner.
Carports in rear - 1 space per unit PLUS ONE ADDITIONAL PARKING SPOT.
Tenants pay gas, electric water and sewer.
Landlord pays for trash (1 dumpster) and lawn care.
Landlord pays common area (laundry) utilities.

Here are some stats on all the units:
7 have been totally updated within the past 3 years.
2 have new floors in the main living area.
1 unit had no work done but is in excellent condition.
2 units have not been touched due to long term tenants.

(Note: Not all units are included in pictures. Included are pictures of the outside and of a couple of apartments that were rehabbed recently.)

Asking Price: $719,700 for all / $239,900 per building
There is a pro forma that the current owner provided is provided in pictures and a .xls copy is available upon request.
Hi Cory,

All units are currently rented and all the tenants are caught up and paid in full except one who needs to pay for December. She is behind for the month because she is switching jobs. She is to pay part of December 's rent this week and then finish catching up next month. Her new job starts on 1/10. She has also applied for state rent assistance, and will likely be approved. I say all of this to say - she is going to be caught up soon and she is in communication with the current owner.
I am not sure about all of the lease terms, but I will find out. All buildings are fully occupied. The turnover has been extremely minimal the past couple of years - current owner had 1 new tenant in January 2021 and had 1 turnover in March 2020. Other than that, there was full occupancy in both years. The rent amounts are as follows:
1 unit rented @ $6508 units rented @ $6752 units rented @ $7001 unit rented @ $725

More info is below:
This consists of 3 full brick buildings 12 units, all 2 bed/1 bath units.There is 1 common laundry in each building in the basement of each building.Each unit has a storage unit in the basement plus one storage closet for the owner.Carports in rear - 1 space per unit PLUS ONE ADDITIONAL PARKING SPOT.Tenants pay gas, electric, water and sewer.Landlord pays for trash (1 dumpster) and lawn care.Landlord pays common area (laundry) utilities. He pays for the washers that are tied into Apartment B in each building. He pays their water and the tenants in Apt B pay their sewer bill.
Asking Price: $719,700 for all / $239,900 per building
The pro forma that the current owner provided is available to a qualified buyer.Regarding that vacancy ratio on the pro forma, the current owner had 1 new tenant in January 2021 and had 1 turnover in March 2020 and other than that, there was full occupancy in both years.
A couple of final notes: All tenants pay by the 5th of the month, except for a couple who pay in the middle of the month. There are $8285 total in deposits that will transfer to the next owner at closing in addition to $4125 for the tenants last month's rent, for a total of $12,410. Additionally, there are several tenants who have applied for state grant to help with rents. Those tenants were approved previously, so current owner thinks they will be approved again. Assuming all tenants who applied get the grant, that could be an additional $14,325 in rents to cover the first 3 months of the year. Estimated credit for property taxes is $14,210.

@Joe Splitrock always appreciate you and @Nathan Gesner chiming in, you both always offer up sound advice. Hopefully I didn’t stick my foot in my mouth and I don’t feel I did, but I did a bit of a combo that I felt comfortable with.

I basically responded in saying it’s unfortunate she’s unhappy, especially considering when I was fixing up the property I used a tree trimmer Susan recommended :-/ but that I’d be happy to talk with her (I had a pretty good rapport with her while fixing the property) but that it sounds like the only solution she’d be happy with would be the trees coming down, so a convo may be trivial anyway. I offered to get someone down there if there was an issue to help take care of the leaves and then offered up the lawn mowing company I utilize going forward if she’d like to use them. 

She responded and said she had the leaves cleaned up and basically told Susan that they’re leaves and they fall where they will. But that I didn’t need to do anything, she just wanted me to know incase Susan complained 

@Mary M. good thoughts and points! Appreciate the insight

@Chris Pasternak very true