All Forum Posts by: Account Closed

 Hi Bill, yes working with Costar currently to get some more data scheduled meeting with a representative this upcoming Monday prior to close. I will ask for the submarket report. Thank you for the suggestions!

Lease of 10% of the building covers of the carry cost yes, asset is in good condition does need new roofing which we have received bids on coming in at approximately $20,000 dollar.

TI will be be dispersed amongst different months over the life of the lease once a tenant agrees to terms.

Exit cap rate will exceed 10% based on the most conservate of numbers.

Thoughts?

Thank you for the responses Michael and Bjorn. I have reached out to the broker and he has informed me he has a party currently looking to make an offer for about 2200 sq ft of the building (its multiple office spaces within the 15,000 sq foot layout) which creates a lot more confidence in the deal from my end. We know there is potential and you make a good point, its easy to get cold feet.

Bjorn what other types of opportunities would you be considering if you were in my shoes? Always open to looking in different directions.

Appreciate the input, wishing you both all the best!

I am in the process of closing on 15,000 sq foot building in Banning California that is currently vacant. 

I am wondering if this is a wise investment?

Purchasing for 1.1 million all cash no financing, the goal is to get a tenant in as soon as possible.

Not sure what realistic expectations are in this market of finding a tenant quickly but hoping to find one in the next 3-6 month and cover expenses out of pocket in the meantime. 

Looking to get anywhere from 75 cents a sq ft on up. If I can it makes the cap rate very appealing at 12% but getting cold feet over the amount of time I may be stuck sitting on a vacant building.

Thoughts on this type of deal and investment strategy? All help appreciated. 

@Drew Sygit thanks for the insight and helpful link, appreciate everyone's help !

Property is in Detroit @Keith Dunn

@Drew Sygit and @Keith Dunn property is in Wayne County in Michigan sorry for the confusion 

@Michael Gilmore I have plans to go out and physically see the property I think it is always wise to get  yourself physically on the ground and inspect the property, the area and make sure its something your comfortable with

@Chris Davidson and @Drew Sygit you both have excellent points. I am referring to Warren county in Michigan and if the prices go up in a year I'd probably be kicking myself. Definitely could spend my whole life looking for deals and never closing one. After analysis the deal seems to be a lower net cap rate than I was hoping for after all expenses so I am not so hot on as it as I previously was, if you both have other listings or clients looking to sell multifamily with Net cap rates close to 10 or above let me know I would be happy to explore those options thanks for the guidance !

Good Morning,

I am looking into investing in metro Detroit for multi-family properties. I live in California and have multifamily investment units here that I have had for many years. I am looking for areas with the best cap rate, I have found a deal that can generate 7-9 cap in the metro Detroit area (Warren County) its a small risk with the deal size being under 200k and I'm going in all cash no financing. My question is, am I getting in too late? Are there other cities or areas in the country where I could get a better cap rate and return, if so where? I have looked at Mississippi, Alabama, Louisiana and Florida and nothing there really spiked my interest I don't see their economies in the small cities I went to really growing, hence my interest in a bigger city with more growth potential like Detroit. My concern is that I am paying the premium due to housing pricing increases, and maybe its best to hold off to see what happens in the coming months? Does this sound like a solid investment? I fear the housing market crashing and buying at the top, but I don't know much. Any suggestion and advice would help, cheers!