All Forum Posts by: Account Closed

The numbers look pretty solid, but you need to verify. I purchased an 11 unit mostly commercial earlier this year and the maintenance costs are more than double what the seller presented and that doesn't even cover the major deferred maintenance and improvements that I am trying to get taken care of. I'd be happy to look over the details with you if you want - just send me a message.

I just sent you a request to connect that way I can message you. Would you mind taking a look at the listing?

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Originally posted by @Bjorn Ahlblad:

@Account Closed the leases would be good to get along with a T12 if they are willing.........the more the better. A statement of income and expenses would tell you what has been spent on maintenance and repairs as well as income of course. What has been holding you back? How long has the property been available? Why has no one bought it? Any vacant or boarded up buildings in the area?

Thank you I have asked the realtor for that info. Also this is a big jump for me but I have decided that larger multifamily (compared to residential) are the route I want to go. I have been under the impression that only multi millionaires are able to invest in property like this.

It has been on the market for a few months which does concern me, I asked the realtor why and he was not very specific. I'm trying to figure out what the hidden factor is.

The building is in a smaller town (pop is under 20,000) that is blue collar/ rural. However the town has potential and is not far from a lot of growth in the Pittsburgh area. Currently next to an older HUD apartment building that is pretty rough as far as tenants and condition. On the other side of the street are newly opening restaurants and small mom and pop stores.

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Originally posted by @Bjorn Ahlblad:

@Account Closed have you seen the property and validated any of that data. Those numbers are vey appealing for sure. You want to inspect the property and rent roll along with all the paperwork associated. All the best!

I drive past the building everyday on my way to work but I haven't been inside yet. I do have the rent rolls which verify this. Any other documentation that I may need to verify this info?

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Originally posted by @Greg Dickerson:

@Account Closed what info are you looking for?

Numbers sound good assuming you can validate them. That's a pretty high CAP rate which usually indicates a rough area or rough property.

Best bet would be to get a local GC or commercial inspector to look at the property for you.

I'm just looking for general thoughts, and advice for a first time investor on the commercial side. The area isnt the best and the building is old. A lot of HUD, however there are alot of incentives in the area for investors to try and re vamp the area so to speak. I think the location has good potential.

I have the means to the capital for a down payment however how do I structure rehab costs and paying investors back? Value add then refi money and pay everybody back plus a percentage? I'm not sure how that would work

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I recently came across a 14 unit building that includes 3 store front units and 11 apartments. The location is decent, I'd say the building itself is C class with value add potential. All units are rented. I think this is a great opportunity however the building needs some updates and I'm not very savy on the commercial side. I can also email you the the full listing from the broker if you would like. Thanks for the help!

Asking price is $595k

11.4% cap

Gross income $134k

Gross expenses $63k

Net operating income $68k

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That is what the current owner is paying for both rental units. I based my ARV off of a comp list my agent pulled. All similar homes in the same area sold recently

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*This link comes directly from our calculators, based on information input by the member who posted.

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Originally posted by @Kuba F.:

The whole idea for your first one is to minimize the risk of the things you don't know.

With this property you are at pretty high risk. Outside of the structural work that you will need to do, and which will require that you open the walls and floors, you will likely need to bring all of the electrical, water, and sewer up to code.

Then you factor in a potentially reduced ARV because of street location and you have yourself an advanced set of problems.

It's certainly hard to find the paint and floors deals to learn on, but they are there, just will have thinner margins. Check out hud owned homes in your area, for example.

Thank you for your advice, I agree and have been looking for deals like that for a while. Very hard to find but like you said they do exist.

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Originally posted by @Dennis M.:

I’m an hour north of that . I agree with jim . I think your being overly optimistic at best . Not saying it’s not possible but it’s easy to rationalize stuff and do mathematics gymnastics to trick yourself into a lousy deal . Get a seasoned investor to look the deal/ property over and give you a real world assessment before you put offers in

Thank you for the feedback

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@Greg Dickerson I know that's a good idea, I'm going to pursue this further with that in mind.

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All Forum Posts by: Account Closed

Account Closed has started 11 posts and replied 46 times.

Post: 14 unit commercial property

Post: 14 unit commercial property

Post: 14 unit commercial property

Post: 14 unit commercial property

Post: 14 unit commercial property

Post: [Calc Review] Help me analyze this deal

Post: [Calc Review] Help me analyze this deal

Post: Need a nudge in the right direction!

Post: Need a nudge in the right direction!

Post: Need a nudge in the right direction!