All Forum Posts by: Todd Keith

Fourplex Apartment Building w/below Market Rents

144 West Tallmadge Avenue

Akron, OH 44310

Click Here for Interior/Exterior Photos Available Here

$82,000

Cost Per Door: $20,500

Building Class: C

Location Class: C

Number of Units: 4

Style: Two-story, Colonial

Current Occupancy: 100%

Market Cap Rate: 10%

Building Square Footage: 2,040

Land Acreage: .58

Year Built: 1909

Opportunity: Excellent opportunity for an investor to get on board with a stable property with possible value added by reducing expenses, increasing rents, or adding parking. Adjacent land also included in purchase price.  

@Account Closed - That's impressive. How long did it take to go from a 25% to 12% vacancy rate? What would you say are the top 3 ways you dropped that vacancy rate? 

Having 4 turns a year must drive up the make-ready/repair costs. What percentage of your GSI go to OpEx, if you don't mind me asking?

@Laura Alamery is right. Midwest is where you can find some great deals right now. I'm seeing great prices in Ohio, Indiana, and the lesser-known parts of Texas right now. 

@Todd Dexheimer - I defer to your judgement on this one. Know you're an old pro in the OH markets. Running with a 60% OpEx, the Cap Rate (Of the $1 Million Asking price) is 5%. That asking price is looking way to high. 

@Account Closed - Thanks for seconding that tip. Plumbing is definitely on the due diligence list. 
One1 step away from being homeless? Wow. Haven't heard that before. 

When you do find 1/1 tenants, how long are they staying? Is turnover pretty high? Having any rent collection issues with the level of tenant? (Higher than the norm)

We're planning on 10% vacancy. Think we should plan on something higher than that?

@Cara Lonsdale - Understood and thank you. That 50% rule (or higher) is looking more realistic considering I plan on having it managed. 

@Nik S. - Excellent information. Thank you! 

Everyone, 

I went back to seller and said "Mr. Seller, I think I may have written these expenses down incorrectly. Could we go over those again?"

Long story short, some of the numbers have now changed. The expenses went up and the laundry income went down by half. Here's where we are now on the expenses and income: 

We're getting closer to reality, but I'm sure there's still more to the story. 

Are DFW BP meetups still happening?