All Forum Posts by: Derek Lee

@Taylor L. thanks for your input!

Hi BP Community,

Thanks ahead of time for your input. Would love to hear your thoughts on the following Multi-Tenant Office Space Deal that recently fell out of contract. It’s a C-Class Multi-Tenant Building located in a low population city, which makes me concerned about volatility.

Based on my underwriting and the seller's firm price, this deal will trade at a 7.6%. Based on input from a Lender it should be trading at a 8-9% cap..

Again, thanks for your input!

Location: Mid-South

Class: C

Units: 20 Office units; 200-400 sqft

Building Interior Space: 6,600 sqft

Tenant Mix: Consultants, Counselors, CPAs, Lawyer, RE Agent

Occupancy: 85%

Characteristics: Slab, Metal siding, concrete parking lot, 2 floors, 3/4 renovated

CapEx: Roof 3 years, 2/4 HVACs replaced, no major upfront fixes based on inspection report

City Population: 16k

County Population: 86k; average 0.93% annual growth over the last 10 years

County Unemployment Rate: 2.3%

Job Growth: Not able to find current Data, can’t verify how Covid affected.

Hi @Evan McCuen would love to hear the certain areas of 35810 and 35816 to avoid. Just a general idea would be great, like "above ____ Street is where it gets rough". Much appreciated!  

hi @Stacey Bochenski would love to hear an update on your property. I'm looking to invest in 35816. 

@Michael Wilfred @Corey Crane @Curt Smith would love to hear more feedback on these companies after a year of use. Thanks!

Let me know a time that works. It would be great to catch up and hear about your journey so far! 

Hey @Carlo Dacanay, is this property located in San Luis Obispo? I heard there's an amazing college there. 

Great tips and advice! Thank you all for taking the time to respond. 

I'm planning to buy an investment property within the next 6 months, hopefully around the the Reno or Sacramento area. I am visiting both locations next week and will have a day in each city. Does anyone have tips on what criteria to look for? I've found articles online that say I should be looking for things such as population growth, job growth, property tax, but these are all things that can be found online. I'm specifically looking tips to evaluate a city by actual visiting in person.