All Forum Posts by: George Voutsinos

Bump

You guys are 100% correct.  Just curious what standard practice was among others.  

The seller can ask whatever sale price they'd like but it's up to you to determine the value. Are you sure they're not condos? I'm not sure how a building of condos would be evaluated but if it's 12-unit apartment building it should definitely be evaluated off NOI. Compare CAP rates from comps that recently sold.

I'm sure it's most likely frowned upon but on the smaller scale apartment buildings, during due diligence has anyone ever tried speaking with tenants to uncover any existing conditions or deferred maintenance problems they may be facing?  Sometimes contractors or inspectors may not catch everything.

@Julio Gonzalez great post!  I understand historic tax credits are offered by the State (25% in PA) & Fed (20%).  I've been underwriting an old warehouse (built 1940) that needs a complete renovation/gut (reno cost would surpass building purchase price).  It would be in the ballpark of a $1million purchase + $4million renovation.  I understand the parameters of what costs are covered and which are not.  This project is a heavy lift due to the fact a zoning variance would need to be completed to change it from industrial to mix/use resi and the building would need to be registered/accepted on the historic list. I have a couple questions I'm hoping you could help answer.

1. Unless someone has a large backing of investors, conventional financing will be hard to find for a project of this nature.  The State & Fed HTC's can help close the gap.  Since this building is not on the list & I do not own the building, how could I find out if the building would qualify and be accepted on the historic list?

2. Drawings will cost approximately $75-100K for a project of this nature, those would need to be completed beforehand in order to get approved for State & Federal HTC's?

Is there any need for contractor yards in Green Bay?  It's basically a plot of land divided up by fencing into small yards/sections.  Could vary in size, 1,000-2,000sqft for each small yard.  You could probably fit 40-50 small yards on that land and rent them out to contractors for a couple hundred dollars each.  Look up rental comps in your area of course.  You'd have to add a security system & cameras but other than that can't imagine much overhead.

Joshua thank you so much for the insightful post. Great to hear from someone that was in the industry. When I was researching PMI I didn't even think of the fact that FHA could be different. I most definitely have a FHA loan. The only other way to ditch PMI would be to refinance into a conventional loan however it wouldn't be worth it with the high rates today. Case solved by Joshua, thanks again!

I haven't joined any mentorship programs for Multifamily however I was a part of Fortune Builders program about 8yrs ago and that wasn't cheap BUT it paid off in a big way.  From the knowledge I learned there I was able to wholesale & buy (1) rental property that cash flows nicely and I still have today.  So if you can land at least one apartment building from a Multifamily mentorship I would say it would be well worth the money spent.

I love Rod Kheif's podcasts and would definitely consider his mentorship program along with a few others I follow.