All Forum Posts by: Dustin Corbett

@Michael Plante

1. 2 years. moved out of a smaller unit on same rd. because they grew out of the small proximity as a bakery only...moved onto full cafe.

2. unfortunately no. I run an automotive dealership that cannot fit into anything other than then 40,000 square foot building we are in now. 

@Ken Naim Thank you for the push. I am confident, and at the same time trying to be realistic. Quite honestly, I always try to talk myself out of any kind of deal I'm considering. And when I can't, I do it. That's where I'm at right now with this investment.

Appreciate the support!!

@Linda S. thanks for the honesty!! Let it roll I guess. 

@Ashton Patterson I'm new to this myself, but have always looked real estate values and it helped once I decided to take the next step with the understanding of what the market is local to me. 

As far as the realtor, I understand where you're coming from. I am in a commission based position as my full time job and it transfers over in my head to not want to waste someone's time. However we found a realtor that understands what we want to do. He invests in real estate himself so he totally understands what we're doing. That would probably be a great fit if you found someone who does it themselves.

We found a deal that we are trying to put together now that we found ourselves without the realtor. It is for sale by owner. And the seller WILL NOT pay an agent commission. So unfortunately I had to tell our agent I cannot use him in this instance and that I truly was sorry because I want him to get paid, but if I paid it, the deal would be considerably worse. He understood the situation and appreciated that I at least let him know and was up front. I explained that we still want to use him in the future!! 

No love loss. It's business

@Ariel K. you're absolutely right. The NOI number I put was the number including a deal I have struck with the seller that would include $1000/mo for 12 months for the vacant property upstairs paid by the seller. I didn't explain that. So adding the 12k to the total rental income would come to $52k...12,600 tax..$3600 insurance...$3300 water and sewer...$3-400 for snow removal....$1200 repairs/maintenance....other utilities paid by tenants...all seperate meters. So taking out the $21k and 5% vacancy leaves me with $23,500 roughly expense wise. Leaving the $28k+/- NOI.

It's somewhat convoluted because of step tiered rents over the next 12-24 months and the caveat of the $12k coming from seller over first year. My explanation wasn't too clear.

Good to hear that you were successful with jumping into relatively bigger properties up front. I appreciate your input!!  

 Exit on the 4 single families would probably be easier!

@Jon W. I don't disagree at all with the single families at all. I'm sure I will have some in the future. Fortunately in my area single families that would produce cash flow with our rental rates are only $120k+/-

i will have to take a look at Kris Krohn!!

Thank you for the info

@Rodney Lorenzo small world. I lived in Ardsley for 6 years and White Plains in the Avalon Communities when they first went up. Also went to Pace University in Pleasantville for 5 years LOL...not supposed to be that long. Played baseball there.

My wife actually rented with a girlfriend of hers in a multi-family in Greenwich just off the highway down the road from Bar Taco, if you're familiar with that part. Not far from Westchester. 

As far as the deal, I am hoping it works out. I have meeting with commercial mortgages officer on Tuesday as my mortgage guy cannot do over 4 units in one. 

I'm thinking it should go well, and offer will be in place.

Appreciate you Rodney. Let's stay in touch. Bounce ideas off each other.

@Rodney Lorenzo yes that is my intention exactly. Not necessarily looking for a quick exit, but you are probably correct as i've heard the same with timing to sell. That being said, if the cash flow is good enough with current rents that are all stairstepped to move up over the next 2-3 years, then exiting, i could absorb a longer time frame barring anything terrible happening financially to us. 

Good luck to you sir. Commercial just seems to make much more sense to me with returns. Although with lesser of a budget and capital to work with, this wouldnt be an option. 

Where are you from??

We are in Upstate New York

Good morning BF. 

Been looking to get in the game for a little while now and ran across a potential investment by pure luck.

Was originally looking at single family residential to start out with rentals.

Commercial deal came in to our laps:

$310,000 purchase price
4 retail store fronts(3 rented to a cafe, 1 to a boutique)
2 apartments rented out upstairs
1 vacant apartment upstairs(biggest of the 3 residentials). Family lived in for years and moved away.

$40k rental income next year
Slighty over $45k 2023 with rent increases in place(were cut back for covid purposes)

NOI is $28k before mortgage

Numbers all seem legit and a good investment.

My question to the seasoned vets is: Would I be going too quick too fast with this many units to manage? The way I see it, it would take roughly 4 single family homes in my area to get back the same return in the same time frame. Cash flow would be slightly more with 4 single families, but we're not looking to get rich quick here and the cash flow on the commercial building would suffice, plus appreciation, paying off debt, and doing small rehab to the vacant property along with renting it out would increase value with additional rent.

I run a business with 40 employees and understand the business side of things pretty well. But I don't know if I should leap into this many tenants without "landlord" experience at all.

I appreciate any feedback you can give!!

Dustin