All Forum Posts by: Felipe Soto

Sure, I would be interested in that offer. This business is about relationships. That would be fantastic!! I am open for collaborating with experienced investors 

Thanks Nick! I almost purchased a 15 unit earlier this year. It was a 5.75 cap. Got lending @4%. However, upon inspection, we found the roof to be 33% shot with plenty leaks. We tried working out the deal with owner, but he was selling it as is. He didn’t want to put money in escrow to fix immediately upon selling. I would like to stay in Florida since I am a resident here. I have all my contacts to execute on a deal, inspectors, attorney, etc etc… Then rates came up and pricing seems to be still up. That’s when I decided to take a peak into STRs, but it’s seems to be in the same scenario with prices and rates. 

On my previous deal, it was a 2.5 mil deal, I had 750 down plus closing cost. Not a whole lot a rehab since the unit was 2008, and then we came up on that roof issue. 

Planing on keep looking for value add deals. Let’s see what happens.

Great points! I am in FL so it’s offers to both. I rather MF because on 32 plus units, one person leaving doesn’t affect Cash flow. Plus, MF is a necessity, not a luxury (recession proof). I have 1 Mil to invest so just weighting my options.

Thanks everyone for your input. I appreciate the feedback !! Many expressed how different variables makes this a very hard question. I can see that as well. In FL, Multi Family CAPS are at 4-5% at best. Putting 25/30% down definitely brings that COC up close to 8% and up based on the deal metrics. I am very familiar with Multi Family, but not too familiar with STRs. I heard some of these STR owners are getting COC returns 15% - 22% plus which was the purpose for my question.

Again, thank you for the feedback.

Can someone with experience please tell me what gives the best COC returns? Multi family or Short term rentals? If you have real live examples, that would be fantastic!

Felipe

Hi Jennifer, thanks for your insight. You make a good point!

Hello everyone,

I would like to ask anyone with multi family apartment experience a question. Do you think it’s better to wait to invest in apartments right now until this bubble environment passes by or is it still smart to invest still? I see two factors in play, high interest rates and low caps. When putting 30% down, the return on investment seems tight. Prices are still high and debt seems to be more expensive. Any feedback would be appreciated.

Felipe

Thanks!