All Forum Posts by: Joseph Gozlan

I've been recently looking for smaller apartment complexes in my area (DFW). 

I understand the market is hot (some would say stupid-hot) but I can't shake the feeling I'm missing something. 

So I'd like to play devils advocate against myself here and see if you could help me see the light or where my logic is flawed. 

Option #1: smaller Multifamily with 30 units.

Let's assume that purchase price is about 1.5M and I can get $250 cashflow per door per month. That's a total of $7,500 per month or $90,000 annual which places our cap rate at 6% (market cap rates are 5-7 for B/C class these days)

Option #2: Four single family properties:

Simple math says that in order to get $7,500 / month I need singles that cashflows $1,875 /  month. Let's use the 50% rule and get to $3,750

Use the 1% rule and we get to a purchase price of $375,000 each.

Now the simple multiplication of $375,000 X 4 = 1.5M

Soooo, head ache and paint of 30 lower end (B/C class) tenants or 4 higher end tenants ($375K in DFW are very nice houses in good neighborhoods)?

I know I skipped some of the math such as vacancies, turnover maint, appreciation etc but I wasn't sold on these being the major decision factor (please DO correct me if I'm wrong here)

What am I missing? 

Does apartment complexes only make sense at larger units numbers?

What tips the scale either way?

as the title says, opi was hoping the experienced members can reccommend a property management company that operates in the DFW metroplex and handle small apartment buildings (under 75 units) in C/B class areas.

You can post here or PM me. I'll make sure they know who reccommended them so you get the credit or even referral fee if they have one. 

Thanks in advance!

Joe

Can anyone confirm it's still relevant?

No one heard anything from Alcorn since 2012 and the dealmakers kit is about a decade old by now... 

Hi all,

I'm working on a presentation portfolio to hand to potential lenders. 

We're talking 7 figures loans so I'd like to hand over something that looks professional, contains all the information someone like you would expect to see and even what format.

If you could share what was included in the best one you saw or what's the most common thing investors forget to include that would be very helpful. 

If anyone has a template to share that would be even better!

thanks,

Joe

@Anmmar Alsaggaf

Piti definition

 Unless they stole it from the manufacturer warehouse it's not possible. 

I bought it brand new with the blue tips and paperwork from a former installer that was forced out of business due to back injury...

@Owen Dashner here's a little trick I've used before when it comes to AC units (Texas heat is rough on them): I keep an eye out on Craigslist. for grate deals on AC units. last time I needed a 3 ton condenser I was able to buy a BRAND NEW unit for $350 added $100 for installation and was done for $450 total. 

Granted the brand new unit was luck but good condition units are available all the time for as little as $150-$200 all you really have to worry about is where to store it until you need it.

Put as much as you need to get the free money (the match) and that's it.

Pros: Save on commissions, access to MLS, no need to wait for anyone to show you a property.

Cons: fees, disclosure requirements, liability issues.

If you have any specific concerns, ask and I'll try to address it.

Hi @Marquetta Wedlow

Welcome to BP :-)

This is a great community and I'm sure you'll find it very knowledgable and helpful regardless if you are new in the business or an experienced investor.