All Forum Posts by: Felipe Soto

Just like you, I am new to these forums but from colleagues and friends in the field I've heard nothing but good things! I would love to hear about what you're doing and how we might be able to help each other out!

Hi Nick!

Thanks for reaching out! You’re close to me. I’m in the Tampa area. Going to PM you.

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Tampa, Florida

Quote from @River Sava:

Hi Felipe, always love connecting with investors!

Would love to hear more about the types of properties you are intersted in. Feel free to send me a dm to chat!

Hi River,

Just PM you.

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Tampa, Florida

Quote from @River Sava:

Hi Felipe, always love connecting with investors!

Would love to hear more about the types of properties you are intersted in. Feel free to send me a dm to chat!

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Tampa, Florida

That's exactly my thoughts. I rather stay away unless, there is an opportunity that makes sense and there is controlling opportunities with the HOA. Thanks.

1 Vote

Tampa, Florida

Hi ALL,

I feel pretty sufficient analyzing the purchase of an apartment from going through the financials and physical aspects of due diligence. However, I’ve never bought a condominium apartment that’s being sold in pieces (IE. 40 out of 220 units).

It is my understanding that the HOA must be carefully analyzed. This has help me back and I feel like I may be missing opportunities by not getting myself well versed in this area.

Where could I get myself educated in this area? I would like to overcome this obstacle.

Again, if we're taking about a non condo multifamily purchase, I have no issues. The HOA analysis is what has me a bit scared from moving forward.

Thanks all.

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Tampa, Florida

Hi All,

My name is Felipe. I welcome anyone interested in networking with me in anything related to commercial multifamily investing. I’m an employer in the insurance space. I’m interested in taking what I’ve made into properties that can provide me with passive income and capital appreciation. I’m not new by all means. I’ve been in the middle of a purchase already fully funded. Just looking to land a deal this year. Aside from that, I’m a husband, father of two girls and another one on the way at the moment of writing this. I have strong reasons for getting involved here and hoping to build strong relationships here.

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Tampa, Florida

Hi ALL, I know this post is from a year ago. I’m considering joining based on the feedback. May I ask what it costs to join?

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I totally understand. I know that if I lock up a property under LOI, I can send my GC with my General Inspection team and the GC will get me that info. Now, prior to locking it up is where I’m trying to refine. I’m not talking about major stuff. Just cosmetic upgrades excluding major appliances as well which are easy to find out.

The question then becomes, how one can roughly estimate 1 unit. If I can estimate 1 unit, then all I have to do is to multiply times the # of units.

So basic items like flooring, kitchen cabinets, painting, bathroom cabinets and bathroom sinks. The items that give a new look to the place. Not cheap but not luxury either. Just standard.

Do you analyze value add deals like this? How would you do it before obviously sending and LOI and getting the deal under contract. Just wondering how successful investors are doing realistic estimates

Thanks Taylor

Quote from @Taylor L.:

It totally depends on what needs to be done. Current condition, goal level of finish, what is going to be replaced/updated, etc.

No matter what you use, make sure the costs are based in reality. I recently spoke with a passive investor who looked at another sponsor's deal - their rehab budget included $1/sq ft to redo the floors. Total fantasy land. Can't even get half decent materials for that, let alone the labor to remove the old floor, repair subfloors, and put down the new flooring.

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Tampa, Florida

Hello everyone,

I heard that when estimating costs for rehabbing a Multi-Family Purchase, some
investors will estimate rehab costs as being somewhere from $10 to $25 per square foot. A 1200 sf unit would range from about $12,000 to $30,000 under this method. If you need major items replaced you may need to estimate them separately.

Obviously, bringing a GC would be best, but what do you think about this method? And/Or as an experienced MF investor, what do you recommend when estimating a value add deal without the presence of a GC?

Thank you,

Felipe

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Tampa, Florida

Quote from @Alex Ramirez:

@Felipe Soto I personally own mtf and a short term rental. It all comes down to how good of a deal you bought to start with. I closed on my STR with zero money down because it appraised at a lot more than estimated. Now the performance of a STR is heavily depend on the market/area you are at. Unless you are at a place where there are tourist all year round, there are some slow months and some really good months. There is obituary more turn over, more broken things, more maintenance. It's a more time consuming business if you will be managing yourself. I guess if I have to give some advice my bet would probably be mtf. Why? Just because mtf is a recession proof business model. When a recession happens, people get into a saving money mode. This will heavily impact a STR. People also lose their jobs and in so many instances even their home but they need a place to live so they have to move to an apartment. Mtf is a solid business model. Just make sure you buy for cash flow not appreciation. Hope this helps

Love the feedback Alex! Everything you said makes total sense. Congrats on your path, seems like you’ve been able to play both sides of the field already. I sort of thought the same as you, but hearing it from someone who can speak from experience on both ends helps. The deal is what it’s all about. Cashflow is king and over time appreciation comes from MF along with tax benefits. After a few reads from everyone, I’m going to continue to walk towards MF. Not saying STRs are bad at all because they can be great as well. I’d love to connect sometime if possible. I hear Houston, TX is great market!!

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All Forum Posts by: Felipe Soto

Felipe Soto has started 9 posts and replied 32 times.

Post: Glad to be here

Post: Glad to be here

Post: Glad to be here

Post: Condo Buying Must Know

Post: Condo Buying Must Know

Post: Glad to be here

Post: Has anyone tried the RaiseMasters program by Hunter Thompson

Post: Estimating Rehab Cost in Multi-Fam Value Add deal

Post: Estimating Rehab Cost in Multi-Fam Value Add deal

Post: Best COC Returns? Multi or STR