All Forum Posts by: Dustin Brackins

Breonna,

Sorry for the delay, I have checked the BP site in a while. I'm a local agent and have 65 rental units. I would be happy to offer insight if you still need it.

Thanks

Dustin 

Tim, I'm a local agent and former commercial lender. I have used Smoky Mountain Title and Tn Land Title for years. Both are great and therefore super busy. I have recently used Secure Title when I need something closed quicker. I'm always available if you need help.

Dustin

Had a lot going on so I haven’t had time to dig much into the deal. I’ll post if I pull the trigger

Thanks Curtis, it’s depends on the quality of the unit and tenants, but between 8-10%

Caroline, thanks for your insight. I analyzed their last 12 months p&l and the $3k profit accounts for all expenses and maintenance. There is a new competitor directly beside this one. Actual vacancy is 12% and the other 18% are late or delinquent to lock out. Owner states the higher vacancy is due to increased rate, but still lower than competition. 

Scott, thanks for your insight. Based on all my analysis my profit off current collections is around $3k monthly. I would oversee management but I have an employee who does the day to day. Over and above the $3k she would get an increase in income. I’m really trying to get an idea of how much profit it should make. Based on what I’ve done so far with residential, the same investment would yield roughly $8k but most of that was built during the recession when buying was cheaper. I appreciate the insight. 

Thanks, it’s in the Knoxville, TN market. 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $360,000

10 unit apartment complex plus additional warehouse.

What made you interested in investing in this type of deal?

Location and return

How did you find this deal and how did you negotiate it?

Fellow investor, we were partners in another deal and I took this one over from him.

How did you finance this deal?

Commercial financing through a local bank.

How did you add value to the deal?

Renovated the units and increased rents.

What was the outcome?

$$$$ lol, positive monthly cashflow

Lessons learned? Challenges?

It takes time to get poorly managed units up to par. Tenant turnover can be your friend if you are patient.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself

Hi, I'm brand new to BP so I'm sure this may have been asked before but her goes... I have an opportunity to purchase a 262 unit storage facility and can structure a deal with no money out of pocket. I'm trying to find the right purchase price however they have an almost 30% vacancy/delinquency rate. Average in my area is around 5-10%. Does anyone have insight on what performance indicators I should be looking for? This would be my first storage facility, my other un its are a mix of commercial and residential. Thanks for the help, Dustin!