All Forum Posts by: Gabe Goudreau

Hello everyone, 

I am analyzing multifamily deals using a modified spreadsheet I found online, and the spreadsheet has a reserve account that is taken directly out of of the NOI called "Replacement Reserve". It is taken directly out from the projected NOI, and replacement reserve account + debt service is what's subtracted from the NOI to find net cash flow. What is the function of this replacement reserve account? Thanks.

Hey BP Community, 

Recently when I have been observing others analyze multifamily deals I keep seeing these two terms Market Rent Discount that they are withholding as another reserve account for the property, along with another reserve titled "bad debt". Is there a simple way to explain exactly how this is and how to calculate it for a specific market? Thanks.  

Hello, 

A friend and business partner of mine and myself are looking to purchase a SFH in our local college town to live in while we both attend the school. Our current plan is to split the down payment, secure traditional financing through the use of co-signers, and rent out the remaining bedrooms to other roommates who will pay us a fixed rent amount, and we will use that money to pay the operating expenses of the home. My main two questions are: How would we structure ownership of this property? I explored the idea of forming an LLC, but we would both like to obtain a non-commercial loan to take advantage of lower down payments. My other question is: We both have part-time jobs while in school, and we are trying to obtain a mortgage through one co-signer each, are we just wasting our time trying to finance a property this way? Thanks BP Community.

Hello BP Community,

I'm doing some research into how to analyze utility expenses of small multifamily properties (5-20 units) and I'm confused about which utilities you can & cannot bill back to tenants. I know some landlords in my market (Lansing, MI) who bill parts, and some who are responsible for all of them. Is being able to bill back tenants more of a matter of being able to track the utilities flowing to each unit through meters/implementing a ratio utility billing system to accurately charge tenants? Or is it more dependent on local laws and ordinances? Thank you.  

I know it is a very important aspect of any successful real estate investor to have an excellent team around them. My question is: How can I build a team when I haven't made any investments yet? I know team members don't necessarily have to be on my payroll, would it be appropriate to seek out professionals and 'pre-create' a relationship with them before launching into my first project? Thanks. 

Could anyone share some tips on finding equity partners for small-to-medium (5-20 units) value add multifamily investments? Should you find these partners before you have a deal on hand, or should you find an opportunity and offer a partnership with returns projected after an analyzation of the property? I have heard stories of newer investors partnering with individuals with more capital by having the partner put up the money for acquisition costs, while the newer investor is responsible for any rehab and property/asset management associated with the project and the equity of the property is split 50/50 or 60/40. Is this just a rare occurrence, or would I need to be considered "experienced" to pull something like this off? For some background on me; I have not made an investment yet, but I have basic skills in apartment unit renovations, multifamily underwriting, and a small amount of capital to deploy. Loaded question(s), I know, but I would any insight - thanks everyone.   

Thank you! 

Hello everyone, 

I am trying to hone in my skills on underwriting / analyzing multifamily deals that are 5-20 units in size. I have done some basic run throughs with sample numbers on some free spreadsheets I found online, but I am really looking to take this to the next level. Any advice on how to obtain financials such as T12 or T6 without wasting the time of agents/brokers? Also, can anyone recommend a more advanced multifamily underwriting software (free or paid). Thanks!