All Forum Posts by: Danial Qureshi

@Kyle Corbin & @Robert Graham from the paperwork that I've received there are 7 Section-8 families residing there out of 33 units, of which 3 are in need of renovation and the rest are occupied. Thank you for the amazing feedback and guiding me, based on what you guys have told me I don't know if I want to invest there, still need to do my due diligence before I do anything else. 

@Freddie Blanton thank you I'd really appreciate it if you could ride by there and let me know. 

@Preston Dellinger just out of curiosity where did you find that information on the population of the city? I'll definitely keep that in mind, I figured that I would have to fill in vacancies from Spartanburg.

@Demond Hammonds yes they are attached as links to the original post.

@Dale Oudems would B or C class tenants even care about the crime rates aren't they simply looking for a place to live? Forgive me for being naive I simply just want to know and you're right the crime rates are up there, whats strange is that Trulia shows a low crime rate even though there have been shootings in the surrounding areas in the past three months.

@Dale Oudems No I have not but I will do that right now, actually where would I find that information? From what I recall BMW, Glaxo Smith Kline, and a few other companies are nearby approximately 30-45 minute drives from here. 

I'm looking at a 36 Unit Apartment Complex and I want the BP Community's opinion on whether this is a bad, decent, or good deal.

Here is a copy of the listing below:

Price: $1,000,000
No. Units: 36
Building Size: 28,000 SF
Price/Unit: $27,777.78
Property Type: Multifamily
Property Sub-type: Garden/Low-Rise
Property Use Type: Investment
Cap Rate: 11%
Gross Rent Multiplier: 5.26
Occupancy: 92%
No. Stories: 2
Year Built: 1984
Lot Size: 6.14 AC
APN / Parcel ID: 3-29-00-058.02
Last Verified: 3/18/2016

Highlights

• Over $250,000 Invested in Capital Improvements in the Past 24 Months
• Several Units Completely Rehabed with several HVAC/Appliances replaced
• Upside through Rent Increase to market rate, Improved Management & adding new units
• Well below Replacement Cost
• Cash on Cash Return : 25.31% (I do not know how they are getting this number)
• Internal Rate of Return (IRR) : 23.22% (I also don't know how they got this number)

Description

Value add opportunity for a new owner. 36-unit, garden-style apartment community built in 1984, the property contains 5 two-story and 1 one-story buildings encompassing wood exteriors and pitched roofs. Pacolet Pointe contains an ideal unit mix comprised of 8 one-bedroom units measuring 616 square feet each, 4 one-bedroom units measuring 588 square feet, 16 two-bedroom units spanning 777 square feet each, and 8 three-bedroom units encompassing 936 square feet each. Currently 33 units occupied and 3 other units needing rehab (2 units fire damaged). 

Questions from my analysis:

-After plugging in the information into the buy and hold calculator from BP. I'm getting a Cash on Cash Return of 6.97% which doesn't line up with the 25.31% I've called the listing agent to explain to me how he got this information, as soon as I receive it and how he came up with it I'll post it here (Link to this information is in a pdf link at the bottom).

-Also for some reason when I found the rental information from realtor.com it didn't list the 616 sqft unit  (below) pricing which I'm assuming is going to be higher than the 588 sqft, but to be conservative I'll use the price listed at 395.

-Is this a good deal why or why not? If I missed anything please do bring it to my attention I want to be able to have a good sense of what to expect and look for in future deals.

My analysis is on the link below:

https://www.biggerpockets.com/buy_and_hold_results...

This is the analysis from the Realtor/Seller:

https://drive.google.com/open?id=0B8IU2B3r4ldta2NR...

https://drive.google.com/open?id=0B8IU2B3r4ldtQmYt...

Hi Roger whats the HOA fee on the condo?

@Jovan O. thank you for the kind words, would you be open to meeting with me and telling me how you got involved in the Atlanta Real Estate Market?

@Peter Vekselman thank you for the feedback. I already have a consulting business on the side and for me analysis is my home turf, and I don't think I've hit the paralysis of analysis side of the business primarily because of the knowledge I'm simply picking up from books and the bigger pockets podcast to better understand how a real estate investor should think. I just wanted answers to my questions, honestly if you don't mind I would love to sit down with you guys and learn the ropes if an opportunity presents itself. I did message Julie Hicks who told me to watch your youtube videos, but she never got back to me about the questions I asked her.