All Forum Posts by: Gaurav Bhasin

I have several properties in Texas and this year the towns are substantially increases the taxes on the various properties I own includes FourPlexes, Duplexes and single family homes. I wanted to know what everyone does to try to decrease them? Are there any lawyers in Texas that can help for Investment Properties? 

@Margarita Ponce I’m an out of state investor. Do you have a wholesale list that I can subscribe to?

@Dysha Hodge & @Pete Harper. Thank you both for your insight. As I mentioned I do have 2 other fourplexes in different parts of Killeen. Both South & North. I have been fortunate thus far to be charging $100-$200 more per units than other properties on the same block in the four-plex properties due to the improvements I've made. I've been following Killeen this year, and if you look the fourplex and multi-family market, its gained big traction and a property I bought earlier this year has probably already gone up by $20 k. Four-plexes in particular and larger properties aren't lasting more than a week. I saw a property listed 2 weeks ago on a Friday a little below market and I couldn't purchase it. I knew it would go fast, I told my friend and he put an offer the next day and someone already bought it. I put an offer on another property that was below market and I gave an offer for $7k above asking and it was gone. The people I'm dealing with have lived in Killeen for 30 years and they have mentioned that the area is starting to undergo a transformation, but obviously in the early stages.

Again I've been following the BiggerPockets podcasts for value add and improved the quality of the properties and tenants. I do go through a pretty thorough screening process. I have people on the ground there that analyze the properties and help me get tenants, I don't use property managers since I feel I would become just another number. I'm using @David Greene's methods for remote real estate investing. I guess my question was more about how to calculate the future value of a commercial property when using the equation to calculate Cap Rate. I am heavily focusing on providing good quality of service for fixing issues and improving flooring/kitchen/bathroom/etc. Things that other properties aren't doing and treating everyone with respect. 

But @Bubba Rob mentioned that if I have 2 of the variables, new NOI & 8-9% cap rate. Using that I should be able to figure out a new possible value. I was trying to get at the logic more than this particular deal so I know for the future.

I'm not saying this is perfect, but I am taking a leap of faith. Will keep you all posted on my journey with this venture. 

@Bjorn Ahlblad thank you for your post.

Dear BiggerPockets members, 

I am currently in the process of purchasing a 12-unit Multifamily property in Killeen, TX. The current rents are $395 per unit (2/1) which comes out to $4800 a month or $57600. The expenses for the property are currently $54000. I'm purchasing the property for $325,000 with 20% down and remaining from hard money lender. I'm willing to jump in during my first year of investing. 

So the current cap rate would be:

$57,600 - $54,000/$325,000 = 1% Cap Rate

Now I looked at the expenses and I believe the property management company isn't doing a great job. I view this as a value add property and hope to be able to do the BRRRR strategy. I also have another property close to this one that is renting for $650 for (2/1). I am hoping that at the very least I increase the rents to $600 and decrease the expenses to Tax/Insurance and misc repairs. I ran the numbers using the Bigger Pockets calculator and going through the wholesaler (fees) and hard money lender (fees), I still could be at a 12% Cash on Cash ROI with increase of rent and decreasing expenses. I do plan on making one time improvements to all the properties. The problem I am having is figuring out what the new value would be since its a commercial property. Lets take for example I do get it to $600 a unit or $7200 a month or $86400 for the year. Lets assume I get the expenses down to $30 K. How could I guesstimate the new value? I am looking to go back to a lender after 1 year. So my equation has the new NOI which is $86400 - $30,000 = $56400, but not sure about the value and cap rate in this equation.

Hope it makes sense.

Thanks,
Gaurav

@Tj Hines thanks for the insight. Will review other properties.

@Christian Rojmar thanks for the info. Will read!

Hello, I have a basic question. I am looking at a property that's 12 units for $360 k. Current rent is $4800 a month, taxes are $6200 a year and insurance is approx $6k a year. Owner pays utilities which is approx $1k a month. How do calculate current cap rate? NOI includes mortgage or only non mortgage expenses.

Additionally I believe I can get the rents up to $8k a month. How would I calculate the value of the property after the value add? Would a commercial lender use the NOI to give me a loan after a year?

Trying to see if I can use BRRR here before I jump in. Looking at hard money for deal. It's in Texas.

Any help to a first time apartment buyer is appreciated.

Hello Everyone, so I have one fourplex and looking to close on another one in a month. Started my purchasing process in March after listening to podcasts and audible books from Dec to Feb. One of the things that @David Greene and @Brandon Turner mention is to have a process in place. So my question is since I'm looking to grow and want to have a process, what property management software should I use. Below are some of the ones I've run across but not sure about which one to go with and why. Any assistance based on experience is appreciated.

https://ntnonline.com

https://www.buildium.com/

https://www.hemlane.com/pricing

https://www.stessa.com/

https://www.freshbooks.com/

https://www.rentmanager.com/

@Jillian Jones I didn't see the request from you. I did DM you, so I'd be happy to answer your questions. I am actually managing the property there myself from NY. @David Greene's 3 core there and one of them is assisting on fixes/getting tenants as needed.

@Kevin Moules thanks for the encouragement will continue to look for opportunities, they are out there just have to find them. @Jillian Jones I mentioned I bought a fourplex out in South Killeen and if you have any questions that I can answer please let me know. Also let me know of any wholesalers since I'm out of state and any help in finding opportunities is appreciated.