All Forum Posts by: Willie Smith

@Willie Smith

I own apt buildings in C/B areas, leveraged, making $100-115 per door. Give or take. These numbers are based on being a passive investor.

It’s really up to you, the property itself and your plan, there is no size fits all  A lot of it depends on the business plan and back end value as you may be negative for a period of time until you complete the plan or exit the property. You need to evaluate the life of the investment and measure that in relation to your return requirements.

Hey @Travis Watts! You could be a Limited Partner in some deals (similar to syndication), or you could do a Triple Net Lease which is truly passive!

With the info you provided @Willie Smith I'd say it's better to find an existing property. This is bc you said she plans to hold this. I don't know what a reasonable time for entitlement and construction would be in your local area, but in California it takes a long time. It also matters if there's rent control. The time it takes to build the structure and lease it up is the opportunity cost you have to assess to make up bc with an existing structure you get the rent and depreciation expense from day 1. If you build and lease out at market rate and sell it quickly I can see the equity upside but if it's a buy & hold in general I don't think it makes as much sense, but hard to say without the actual numbers. There's a small possibility the lower expenses and higher rent can make sense.

I would expect the greater savings to me from insurance.