All Forum Posts by: David S.

@Paul Choi. Can you share how you are finding 15 and 16 unit properties at 10X GRM? Are these value add plays? rents below mkt etc?

@Mike Dymski wrote "The least conservative assumption I see in some offerings these days are exit cap rates."...Cap rates being where they are now, I presume you like to see exit cap rates that are higher than the cap rates the sponsor is currently buying for.  If so, is there some sort of guideline/parameter you use, such as an exit cap rate that is 100bps higher than the entry cap rate?

@Dylan Vargas. Thanks for the info. Very insightful, especially the part about 2 bed condos going for 100K. You say this is decent but not best part of town.

So what is the best part of town?

BTW, google maps show large patch of green behind this Notre Dame property going all the way down the strip...Some kind of park? or development potential for more housing/competition?

Circling  back to the Chico multi-res marketplace.

@Dylan Vargas and other experts in the Chico area...can anyone advise what they think of this property and the neighborhood it is in? What kind of tenants will this property attract?

An 8 unit property located at 2300 Notre Dame, Chico, CA. 95928...supposedly very well maintained.

Thank in advance!

@Jay Hinrichs. Got it. When it comes to mobile home park syndications, there seems currently to be many more MH Park sponsors that have NOT lived through the last downturn than those that have. And those that did, were in a different class like apartment buildings or SFHs.

Just looking for safe cash flow investments with some potential for upside rather than being in completely in idle cash.

@Jay Hinrichs. Given your comments above, maybe have to be extra careful now to investing into multi-res syndications. Mobilehome Parks are supposed to be much more recession resistant. During the last great recession, were there situations where people abandoned their mobile homes en masse? If so, is this risk mitigated by the park owner being able to clean up the mobile home park and rent it to someone else quickly, maybe someone moving from an apartment.

@Wes Blackwell. Great post. Like all the others you do. I am looking for multi-res (4 units+) in Sacramento. Can you recommend 3 zip code neighborhoods I should be focusing on.  

@Nicholas Aiola. Thanks for the quick response. Are there any issues i have to watch out for? let's say i refinance a 100K loan for $200K and put the extra $100K in the bank until the property is found 3 months later. Is the entire interest on the $200K tax deductible. So one told me the interest on the extra $100K would not be which didn't quite make sense since I could argue the $200K are funds borrowed to continue investment on the original first investment property. 

@Nicholas Aiola. Not sure if this has been asked in this 25 page thread which has provided invaluable advice to many. 

If I refinance one investment property and use excess funds over and above current debt to buy another investment property, is the entire interest and any points paid on the new loan tax deductible?   Someone told me I have to be careful when i do this. 

Yes, all great advice so far. No doubt vetting the sponsor is equally as, if not more important than vetting the investment property. Alignment of investment philosophies, trust and transparency are crucial. That trust will be developed only from talking to many.