All Forum Posts by: Brian Garrett

They would calculate it based off the current leases (income) and expenses.

I don't know your market but it sounds like a pretty decent deal for a flip or even a BRRRR.

2% is very difficult to find in most markets unless you're investing in pretty rough neighborhoods.

They will consider income but ultimately 2-4 unit properties are valued based on comps like single family.

2-4 units are valued based on comps the same way as single family homes.

5+ unites are valued based on the NOI and the market cap rate for the area.

2-4 units are valued based on comps just like single family houses.

Some lenders will consider income but ultimately comps will outweigh everything.

A duplex is valued the same as single family so nailing the ARV is pretty simple.

Just look at the comps and see what updated duplexes in the area have sold for.

Do the same for rents so you know what you can realistically expect to get from each side.

You are not going to get significantly more than market value you will get what similar ones are going for.

Since you have both experience and capital I would suggest a 5+ unit value-add multifamily.

Buy something that needs some TLC, rehab the units, rent them at market to increase NOI and refinance or sell and then 1031 into something larger until you reach the cash flow that you're looking for.

You don't necessarily have to find something that needs rehab you can also look for something with under market rents that you can push up as the units turnover. 

The key is just to drive up the NOI which ultimately increases the cash flow and value of the building.

Having $1M in the bank won't get you very far these days.

The focus should be investing that $1M for the best and highest use to produce the greatest return.

I would invest in a value-add multifamily or be a HML and become the bank and lend money to flippers.

I also wouldn't advise posting on a public forum that you have $500k cash and don't know what to do with it.

Beware of all the colleague requests and messages you get with "opportunities" and "deals" now that you did.

Syndications can be a great passive investment and there are lots of sponsors here on BP.

You mentioned you're unsure about tying up a large sum of money for an extended period of time like a syndication would require so an alternative would be to become a HML and act as the bank.

You can turnover your money quicker as they are much shorter terms (6-12 months) and can yield a similar IRR.