All Forum Posts by: Will G.

Hi all, i would like some help on what to offer on a 32 unit complex (my first).

The property is located in a very good area with much sought after school district, built in 1965, 12 two bed 1 bath, 20 two bed 1.5 bath, but current owner did many improvements including, windows and doors, metal roof, plumbing upgrades, repaving, pool reconditioned,flooring, cabinets etc. the only capex i could spot on walkthroughs was the 20 ac units not replaced(recently). There have been only 3 turnovers in the last year, and 9 of the current tenants are section 8. Rents appear to be among the lowest in the vicinity and might be slightly adjustable upward.

256k gross rents

4% claimed vacancy rate=

245,500k gross

Expenses=

$7031 insurance

$27178 re taxes

$21018 repairs and maintenance

$25417 utilities (water incl in rent)

Currently being managed by owner but got quote at 10% of rents and 50% of first month to place tenant

$24500 management

$105144 total expenses

$140356 net

If, big if claimed expenses are correct what should i offer on this property? 

I do plan on 25% down financing, 4.6 percent 10 year note w/30 yr amortization

Thank you for the input

Hey all,

How does one determine if a given market is at or near saturation for apartments? Are there any standard metrics,ie x number of population =x number of apartments? My town has lots of new complexes that are not full but close to full. Is this an indicator?

Thanks

defense stocks!

Can you get a home equity line of credit? Is 50k enough in your market to do a flip? do you have the skills/ nerve/ time to do it? Can you or family member qualify for a purchase loan on the flip house and perhaps use the equity to do the repairs?

Just my 2 cents.... volunteer with habitat for humanity, you will acquire skills for flipping and make contacts in trades, plus help people get their own house. While you are doing that, besides learning as much as you can, start looking at mobil homes to fix and rent. You are in a mobilehome mecca and i bet you can dig up some crazy good deals if you keep at it. Lastly, lucky you! If only i would have started in re at 20

Well i stand corrected, Dan states 10 percent appreciation for the last 50 years! so a $100k home bought in 1970 will sell for over $7 million in 2020!

Historical appreciation = 3 percent. Does 3 percent per year change your outlook? Besides the history of residential real estate appreciation , does your city have an extra ordinary driver of home prices?? higher than average job prospects? Major employer moving to the area? Park going in next door? Etc. Timing the market so you realize gains can be soooo difficult, especially with yearly tenants in place. I personally can't imagine going negative cash flow for speculative gains

agree with the theory, there is little to choose from when it comes to investing, hence the super low cap rates in major market multifamily, and a ton of multi fam projects in the pipeline, which will lead to oversupply and reduced rental rates at some point. Hence the cyclical nature of this industry.just try to figure where we are in the cycle and act accordingly

Thanks for all the awesome replies and solid advice, but.... would you really be putting money into stocks right now?? Syndication into multifamily sounds good but would it be wise to stay out of major markets and the low cap rates those properties have? Hard money lending sounds good, although not really passive but something I need to educate myself on. Crowd funding also sounds like a good strategy, but can someone reco any tools to get started? There is no cash flow on single family properties for rentals purchased in my area anymore and I am looking all over the state(florida)

Thanks again for the great response!

Ok guys, what would you do with a fresh million bucks, no jetskis or escalades, I mean if your parents entrusted you with the money for passive income generation, and you had to put it to work. What strategy and where would you invest? How would you break it up? stocks, real estate, cash?