All Forum Posts by: David S.

@Johnson H...

You said above, "For myself, I have a few partners that see eye to eye with me on buying MFH. With my conservative underwriting and the long term potential of owning in SF, I think I have the appropriate margin of safety with my offers at this point of the cycle. There are a lot of strategies in real estate but I do believe most people would be served well investing in their own backyard."

As a believer in MF for the long term, can you elaborate on what your conservative underwriting criteria are in the current state of the Bay area market?

Seems some Bay Area flippers are having a challenging time. Let' s see if the IPO wave will help them.

https://www.bloomberg.com/news/articles/2019-05-09/young-real-estate-flippers-get-their-first-taste-of-losing

Buy and hold with low leverage is the way to go in the Bay area.

Per this article, things are not working so good for some Bay Area flippers these days...

https://www.bloomberg.com/news/articles/2019-05-09/young-real-estate-flippers-get-their-first-taste-of-losing

How do you treat capital improvement expenses related to say a seismic retrofitting of a basement that was started in  2018 but will not be completed until sometime in 2019?

Are all the related expenses that were paid in 2018 to be capitalized and only expensed/depreciated once the project is completed in 2019? Or can they be expensed for the 2018 tax year?

It looks to me like you would be essentially giving WWC a loan to be paid back through the property's earnings or a refy or a sale...and then you would get 65% of all proceeds after you get your invested capital back...Most syndications I have seen, the sponsors offers a preferred return (6-8%) on the investors' capital until the capital gets repaid in full. Then the sponsor gets their share of the split.

If you are happy with the tenants, I recommend letting sleeping dogs lie and go month to month until you are more sure you are at market or below. If the tenants are content, they could easily stay another year on a month to month basis. If you raise the issue and they decide to move, how long do you think it would take for you to find a replacement tenant that is just as reliable as the current one?

Looks like the listing agent is not very motivated to working with you...what is his/her rationale for not sharing leases?....Any reasonable buyer is going to want to get/review copies of leases and estoppels.

I have been presented with an opportunity to invest in a syndication that is buying a 198 unit apartment property located at 18301 NW Chemeketa Ln, Portland, OR 97229, known as Westview Heights. 

I am doing my own due diligence but would also like feedback from others in the local area as to what they think of the location, the property and prospects for continued growth in the area and for increasing rents.

Specifically, I would appreciate your views on:

Thanks in advance for your input

I have been presented with an opportunity to invest in a syndication that is buying a 151 unit apartment property located at 1284 Park Canyon Dr, Dalton, GA 3072057, known as Park Canyon Apartments.

I am doing my own due diligence but would also like feedback from others in the local area as to what they think of the location, the property and prospects for continued growth in the area and for increasing rents.

Specifically, I would appreciate your views on:

• Whether the neighborhood should be considered A class?

• Whether the property should be considered B class?

• How much new construction is planned for the area over the next few years?

• How high multi-res vacancies in the area got in the last great recession?

• Cap rates for recent sales of 100+ units in the local area.

Thanks in advance for your input.

I have been presented with an opportunity to invest in a syndication that is buying a 151 unit apartment property known as Park Canyon Apartments, located at 1284 Park Canyon Dr, Dalton, GA 3072057.

I am doing my own due diligence but would also like feedback from others in the local area as to what they think of the location, the property and prospects for continued growth in the area and for increasing rents.

Specifically, I would appreciate your views on:

• Whether the neighborhood should be considered A class?
• Whether the property should be considered B class?
• How much new construction is planned for the area over the next few years?
• How high multi-res vacancies in the area got in the last great recession?
• Cap rates for recent sales of 100+ units in the local area.

Thanks in advance for your input.