All Forum Posts by: Gabriel Miritello

Hey,

I am active Army and invest in Savannah. Message me with your phone number and ill reach out.

-Gabe

 Gino,

Thanks paisano. My big concern right now is that cash flow, reserves, and fixes don't feel right. Cash flow as is today is $140 TOTAL for the complex. I know I can get the rents up but that will be a year (repairs and tenants changing) and even then I would around $50 a unit. 

Did a walk through Friday. Submettering is an very viable option($$ knob and tube(1961 construction) ) and there is 1 water heater per building(3 building=14 units)(individual AC units). Those W/H are old and don't work great. so to get increased rent, I am thinking plumbing of tankless in each unit. (Costly but will eliminate need of gas bill, can tie into electric).

The money I see is in the expansion over the next 2 years. 10 more units, 14 storage units, and on site laundry(already plumbed). Rough est is $500k (contractor walk through) with approx $9k earnings monthly.

All this said. My hang up is getting to that expansion before issues pop up.

Comps as is were $1.1 mil. Insurance told me as is, is $1 3-1.4M. So the potential is there...but if I am underwater every month and stressed idk if that's worth it. 

Thoughts? How much for reserves would you want? Looking at what I know- would you still want cashflow $250-300 yr one?

Thanks for weighing in.

 Joshua,

Thank you for this crash course. 100% ii was using PITI as i do with my single families, i will adjust and look at that. No experience with Develpoment. Cash flow - rents in the area are $800-900 based on a search of what's available, current rents are $600-750. with Section 8 @ $800 for a 1/1. I will do some additional research. Never heard of a RUBs fee - I will research.

Thank you again, a lot for me to look at. The information I needed.

Thank you for weighing in. I will run those numbers based on a 5 yr hold. I looked at CoC, but not IRR or AAR - thank you for ranges you look for!!

Hello,

Looking at a 14 unit with room to expand (potentially 7-14 additional units or 30 storage units or a combo of each). However i have a few questions to make sure my numbers make sense.

I have spoken with a lender and estimating 8% rates. I am working with an insurance company who is putting together an estimate. Taxes are 2.9%. Rent rolls have been provided and are at about 10-20% under market value.

Questions:

When looking at MF - what are your goals? $$ per door, CAP rate, or something else? I am looking for $150 a door after ALL (PITI, vacancy, capex, maint, 10% prop management) expenses. Am I wrong?

What % are you planning for vacancy, capex, maint, prop management when running numbers?

Property needs a few things. Any concerns or ideas on prices?

-asphalt parking/driving(currently dirt with massive pot holes)(awaiting estimate form local company)

-Individual metering (previous hotel, 3 different buildings(2 doors, 7 doors, and 6 doors), all on one meter)

Any advice or things to consider are appreciated.

Noble,

Great podcast. I am active Army and would like to chat. PM sent.

-Gabe

Hey all,

I am looking at expanding beyond Savannah, GA. I am currently in El Paso, TX and when you add in property taxes, i can not find a way that long term multifamily works. So it's time to branch out. 

Does any one have any info on multis in Las Cruces? I will continue flips and SFH rentals in Savannah but want to find the next market.

If you could help with:

-concerns on NM being a lamd lord friendly state.

-best areas(I have ideas but would love to hear yours)

-a multi family experienced realtor

-property management group

Looking for small to mid multi Duplex to 30 units also would be interested in mobile home park info.

If you want to meet up, coffee on me.

Some reason i cant post the after photos

Investment Info:

Single-family residence other investment.

Purchase price: $65,000
Cash invested: $70,000

The house was all about building equity and the long term game. This home also taught me 2 important lessons - it never hurts to ask and just because a contractor was good before doesn't mean he'll be good next time.

What made you interested in investing in this type of deal?

It was sitting on the market for a very long time.

How did you find this deal and how did you negotiate it?

MLS - swing for the fences and offer a low ball offer

How did you finance this deal?

Cash - from previous BRRRR

How did you add value to the deal?

Complete reno

What was the outcome?

$100 cash flow and $50K equity

Lessons learned? Challenges?

Never hurts to ask: The original MLS list price was $125K it dropped to $110K after 30 days and finally dropped to $95K after 3 months. I had my realtor reach out with a $60K cash offer. They countered at $70K and we settled at $65K. After putting in $70K in reno, I was all in at $135K. I pulled 130K out and it was appraised at $185K.

Contractor was great on 2 previous projects - but fell off towards the end of this one. Made a 3 month project 5.5 months. I didnt pay up front - that saved me.