All Forum Posts by: Doug B.

Edward / Bill

I see the point on expense to low. However do have $1,400 a year already figured in for expense. The Reno also I'm covering every area to ensure all that I see as expense in future is in age of 2010 as to A/C, HWT and all other will be new. Yes things happen and will have that in mind.

As to the renter I have a long term to put in. The person has been in a multi family unit of mine for last 4 years. Very solid and while his future may change looks safe.

Vacancy in area over last 5 years has been very rare. Sales over last 5 years have been $33 k on up. This is the first home I'm aware of bank is willing to sale under $30 k.

My numbers Feel in revenue has been figured at bottom range but will account more for expense. The biggest question I had this home is a buy and hold and does not offer anything to increase value such as adding on / knocking down walls etc. Will a 11% return as Bill has figured be good. Small amount of money dealing with and will be buying other homes as we still have a lot of distressed in area. I have always wanted better equity from start at current market values. It is a new ball game for me buying and after reno be at break even status equity.

Thanks

Have one house under contract and the bank dealing with has offered a 2 br 1 bath home 800 sq ft. with firm asking price of $27,900. RENO will be $9,500.

House in 2010 had new main service ran, A/C, hot water. RENO will be new inside electric, cabinets, appl., flooring and cosmetic the rest. Roof is decent.

The house will rent for $635. The ARV will be $38,000. While predicting value down the road is hard a safe guess 4 years value will be $45,000.

Management is in house, taxes / insurance $165 a month. Cash deal and would 4 years cash flow after expense of $19 k and equity of $7 k be a good deal. Have thoughts of exiting after 4 years or should just hold longer. Residential have been trying to start off with equity at begging and never figured or any experience starting off at break even as to equity.

Aaron the way lending is currently only options for some would be a lease to own. Will give some thought to that.

Thanks

Just saying over the last 5 years average 3 tenants a yr that have to move from one of our 2br Townhouse to a 3 br house / Apt elsewhere because of family growth. They are or have been the ones you would want in a property. Also, have traffic weekly that if had a 3 br house / apt could have something to offer.

My market at moment sfr still is a buyers market. I have no fear of leasing any of homes purchased.

I was wondering if a mix of 78 unit complex and residential would be a good sale package. thoughts now is to keep the 2 apart and pick up few multi that to get closer to 100 doors there. Keep residential long term and sale individually when market improves.

Speaking from my experience in my market 78 units is more of an individual owner managing the property. I feel I need 100 door / units to make and get top dollar as in all likely hood would be ran by a management company by new owner.

My area the complex's that are 20-60 units that might be for sale next few years are class C-. Would not be interested in re positioning them when plan is to sale in 3-5 years.

This area does have duplex / tri / 6 plex's that could be pick and get to the 100 door threshold I feel is needed.

Correcting the radius if was either residential or multi to pick up would be 1/4 to 2 miles from complex. On site could easily handle.

I just did not know how residential rental's would fit in a sale with a multi -family complex. Plan will be getting to the 100 door count and will try to pick smaller multi. properties. Still proceed in buying residential and renting as my area is a buyers market.

I follow you Bill. Will keep multi together and residential will keep in a different ball game.

Currently have a 78 unit apartment complex that currently manage in house. Have a excellent non-recourse loan and assumable when time comes.

When this is put up for sale a 78 unit complex numbers are tight when a property management company is in place. Management in this area is 8% + and manager / maintenance wages are high. Need more doors to be attractive if not independently managed. ( If % rates goes up we do sit perfect tho) Other Multi- in area is limited that is for sale or the price is not workable.

So my thoughts are to start buying some single family homes as our market is still way down. Have 1 under contract and would like to have more. Having the apartments every day have traffic of family's that need a house because of their size and current tenants that are wanting a house. On my end getting a house occupied is not a worry. It is just what it will bring to the table when the complex is sold. All the homes would be in a 1-5 mile radius.

Would having SFR's that is positive on equity / revenue along with a 78 unit complex work down the road next 3-5 years when put up for sale.