All Forum Posts by: Account Closed

 I did ask one owner if he would be open for an offer and he said no. A day later, I called in the assessment of 40k ( I have the vote). I now have 70% share and they have 30%. They were actually receptive of the assessment and paid within 30 days.

I am considering solar now and that will be something I pay on my own. the reason is HoA does not pay taxes and it wont benefit from the renewable energy tax credits.

 After the remodel we are back to 0 cash. That is why other owners sold. Next capex will be furnace and boiler (~20k)

Expenses do not included management fee as it is self managed but other then that not so low. it is the rents that are relatively high. Most guest are from Airbnb but some from my website too https://www.furnishedmn.com/.

 I did think about getting a property manager and have added WIFI to the building through the hoa. Not sure what else should i include in the monthly due. In unit cleaning? lol

 Yes, they are. separate meters and property tax bills.  

Exactly. I got the first one with conventional and the other ones with seller financing. Its possible but very hard to find financing for this now. Unless one want to put 35% down for a DSCR loan which doesn't sound like a great deal to me.

Hi Everyone,

I recently purchased the 4th unit in a 6plex and now I'm considering buying the remaining 2 units. So far, I paid below market rates because the building was severely under managed. Now, the other 2 owners know I want to buy their units so I anticipate they will be asking for a premium. I could really use some guidance on how to approach this.

To provide some context, the building is in a premium location, with easy access to lakes, restaurants, bars, grocery stores, and public transportation. I've recently had the roof replaced and fully updated the common areas.

Here's a breakdown of the situation: The units are currently marketed as furnished rentals (cashflow well), and based on the current income of the 4 units I own, I anticipate that all 6 units combined will gross $182,400 annually. That is considering 15% vacancy and pricing seasonality. I currently manage the property so, I know that the operating expenses amount to $67,204 annually.

I've done some research and found that the cap rate in our area typically falls between 7-8%. Considering the building is still legally set up as condos and they are rented at much above market rates, I'm wondering if I could still demand $1.4 million for it? will lender consider actual rent roll or will they be using market rates? If they do consider market rates, that means I have a huge margin (my basis $705K) and I can pay any price to buy out the remaining 2 units? Market rate is $190k per unit.

I'm really excited about the potential of this investment, but I want to ensure that I'm making sound financial decisions. I am also fine with keeping only 4 cash flowing units and not overpay. Any insights or advice you could offer would be greatly appreciated.

Thank you in advance for your help!

Lets talk! I am looking for of market properties!

Not to hard to achieve the 1% rule.

@Lauren Hogan 

Thank you for the detailed response, Tina. This is very helpful.