All Forum Posts by: David Levin

Hi all. Need a little help here. I am currently under contract for a 6 unit. Building will be vacant at closing. Extensive rehab. Strategy is BRRRR method. There is no seasoning for cash out refi and we can get 70-75% LTV. My question is, how is NOI calculated without expenses factored. I am assuming it based on my pro forma expenses? Thanks!

@Evan Polaski. Understood. Let's just say not all of these issues were known (gut rehab never disclosed) or available. But contracts also have contingencies. An inspection is one of them. But, that being said, I love the feedback. It's something I did not consider. I appreciate the education. 

@Evan Polaski This was all viewed during inspection. 

Thank you all for your input. John these are repairs to operate. The plumbing is galvanized and hot water pressure in some units is maybe at best slightly more than a drip. Roof will need work, tuckpointing and replacing lentels in 20% of the building. One unit needs complete gut and rehab which was not disclosed prior to contract. 

Thanks Bjorn! Really good advice. I appreciate it!

Hi all-

I am under contract on a 13 unit and estimated repairs after inspection are $150K-$200K. There are minor details here I am not overly concerned with. Contracted much lower than ask but that was based on analyzing the deal and week of negotiating with 4 vacancies. Any suggestions on how to approach this with the seller. Any input would be greatly appreciated. Thanks.