All Forum Posts by: Daniel Shuler

Tree trimming is not typical tenant landscaping and no reasonable person would think it is. Rake the leaves, mow the lawn, and water the plants. That is landscaping for tenants. 

As for gray areas in contracts, the courts will almost always find in favor of the party who did NOT write the lease.  

Hey All,

Does anyone have any contractor recommendations that work in West Virginia? Someone you have used before and would recommend. Thank you for any referrals.
 

@John Matthew Johnston one important factor is: where do those Boomers live, and where do the young people live?

In my city (like in many cities), the most desirable, most trendy, B and A class neighborhoods have a lot of young people, and relatively few old people (and a lot of the old people have moved to cheaper, often more rural areas). 

A more specific example: West Virginia has one of the oldest average ages of any state in the country. The reason? Young people who grow up there often leave and move to urban areas where there are many jobs (like DC), and old people move to WV when they retire because it's a very inexpensive place to live. On the flip side, DC has one of the youngest ages compared to other states & territories--lots of young people move there, and lots of old people move out to go to places like WV.

...of course, the issue becomes more complicated when considering states like FL, which seem to have an influx of both old and young people...

Needless to say, it's a complicated issue with a lot of factors at play...

Quote from @Daniel Shuler:

This is something I've been seeing a lot of lately that leaves me scratching my head. Sometimes I feel like "Am I missing something here?". What I'm seeing are numerous multifamily properties, brand new, old, updated, not updated, that are listed that even after a 20% down payment, with today's interest rates, wouldn't even cover the mortgage, let alone all of the other things you may need to account for like CapEx, PM, etc.
How are these sellers/realtors coming up with their prices when the numbers don't seem to jive for an investor?

 because you use the 20% down - a 2009 environment number ; in year 2022. It's that simple.

the logic you guys using fo not calculating all the appreciation dynamics that happened since 2008-2009. 

Quote from @Daniel Shuler:

This is something I've been seeing a lot of lately that leaves me scratching my head. Sometimes I feel like "Am I missing something here?". What I'm seeing are numerous multifamily properties, brand new, old, updated, not updated, that are listed that even after a 20% down payment, with today's interest rates, wouldn't even cover the mortgage, let alone all of the other things you may need to account for like CapEx, PM, etc.
How are these sellers/realtors coming up with their prices when the numbers don't seem to jive for an investor?

This is a great point that I am seeing in my market as well. I do a pretty comprehensive analysis of properties and when it comes to multi-family units, it is all about the math. I am working with a sellers agent on a property I found last week and I simply sent them my breakdown. It simply does not pencil out as a good investment at the current price and the seller is still trying to stick to their price right now.

The agent suggested putting more down to make it flow, which then kicks ROI into levels that don't meet any reasonable minimum. I laid out both scenarios for them with data and I am waiting for a reply at the moment.

Of course, this is before even SEEING the inside of the units! They are not allowing any viewing until there is an accepted offer. I cannot recall the last time I did a deal like that where I did not come out insisting on concessions from the seller.

One issue I am seeing feeding this is real estate agents that are clueless about multi-family investing. They then set very poor expectations for their seller clients and if any creative solutions come up - it is deer in the headlights time for them.

On the upside, that all spells opportunity for the folks that are chasing the right deal - it just requires a greater investment of time on the negotiating side.

From what I can tell, BRRRR is the main play right now. Most SFH or Multi-units wont cash flow unless its in a market where prices are low and rents are high...there are a few still out there. You can still find a deal but it will take analyzing tons more to find that needle in the haystack.

@Daniel Shuler I think whats going on is that a lot of those buildings you are seeing are owners who are long-term holders and are willing to wait until they either get a buyer at their price or until they NEED the money in which case they might sell.  How else can you explain buildings listed for over 400 days in some cases with no price changes and no seller financing available?  They must not need to sell, so why not wait until they get the offer they wanted.