All Forum Posts by: Ace Goodrich

this is a very good subject; there's so much to cover (npi) with this and the information can be vague at times.  Thanks for these answers

Hi @adi Jacob, yes, happy to connect you two.  Send me your email here in BP and I will make sure you link.

Cheers

Quote from @Adi Jacob:

Hey everybody!

Thanks in advance for any feedback.

Due to where we are in the market currently, I'd like to begin sending out LOIs to get a feel of the market.

I have 500k available and looking for a small multi-family in good location east of I-95, Hollywood down to South Miami.

How should i go about it? Get a buyer's agent to submit offers or send LOI's myself directly to the sellers agent?

All help, tips, and recommendations are truly appreciated!

Jacob 

I appreciate your input = Help me analyze this deal

Triplex 2bd-1ba

Melbourne - Orlando

2 are rented below market

1 unit is vacant

CBS in good shape per agent

2300 current cash flow

PITI would be ~2800

neighborhood is appreciating ~4% per year

How good of a deal is this?

This is a potential acquisition triplex (3x 2bd-1ba) which is already generating income. There's potential for more because one of the units is vacant.

It's in a satellite city of Orlando metro, about 65-70 miles from Orlando International Airport. It's 5 miles from Melbourne International.

My main questions are mainly how to make sure this is a good reading of the deal,

and secondly, having enough cushion to manage this remotely, in case that becomes necessary.

(btw, Have not yet reached out to PM property managers in the area. Recommendations are welcome!)

How good of a deal is it at 310K, with the two units generating 2300 per month. Btw, this is undermarket and rents could easily be closer to 2600 per month (1300 per 2bd-1ba unit). I do realize that is cutting it close to pay the PITI (estimated about 2800).

It doesn't seem difficult to generate income from renting the 3rd unit at market rate, or even at the current 1150 per month.

The neighborhood is appreciating as well, at least 4% each year since the 2010 rebound.

The schools don't have the best scores in this area based on Zillow scores, so this may be better as a STR short term rental depending on that as well.

This is an early stage on this and hopefully there's great responses and insights you could share so I have more to bring as the deal progresses.

thank you all in advance!

@Adi Jacob very investor-friendly 

hi Adi Jacob, you're in a good market for so many reasons. SoFla is growing everyday.

I had a very good experience with an agent in Miami near Riverland/new stadium area, which will more than likely see solid appreciation in the upcoming years.  

Ultimately didn't acquire the property, but would definitely collab with that agent again. They were very thorough and helped answer/guide me on the many questions I had as a first-timer.  They also invest so their perspective was valuable and thoughtful in that respect.

Would be happy to connect you if you like. Good luck as well.

Happy Wednesday, BP.

Great resource document by Leah Delaney & Dave Meyer.

Great info to have along with thoughtful commentary to consider buying and prepping investment rental properties.

Updated the Top 100 Markets pdf with info for this year with the Year over Year rate change for these markets – and a few adjacent cities/towns.

Hope this makes your research and decisions smarter, better, more profitable.

In case you’re curious about a particular city/town, happy to help you find most recent info. Send a quick message here on BP or quote me in this post’s comments.

Use this link to download the file = https://hubs.ly/Q01XxQ8_0

The filename looks lke this = cGuD4S0J Top100 Rental Markets JUL2023.pdf

Enjoy & Happy Investing!

Thanks to

Leah Delaney

https://www.biggerpockets.com/users/leahd42

and

Dave Meyer

https://www.biggerpockets.com/users/davem27

Cheers!

Quote from @Ray Hage:

Quote from @Danielle Lynch:

Hi guys,
My first bigger pockets post. I own 3 long term rentals in Chicago and I am looking to buy my first multifamily in south Florida. Does anyone have recommendations on cities they are investing in Florida that are currently working? Do you think I have to start with 2-5 units or just analyze the numbers and try to scale up to more doors (which is my goal at this point). I have $500K liquid and another $400k in stocks I could pull out if I find a deal I can't pass up. Thank you in advance for any help!

 Hi @Danielle Lynch, I am an investor (with 3 multi-unit properties) here in South Florida and also a Realtor. At the moment, I believe your best bet are some cities in Broward and Palm Beach. Generally speaking, Miami's prices are a bit too high to have a decent cashflow at the moment. If you'd like to connect over the phone, I should have some free time this afternoon. 500k liquid is plenty enough to get started but don't sell your stocks just yet. Let's find the right deal first.

 Agreed.  There are absolute buys every time I open my email.  Even with very risk-averse settings.  

Reach out of you need anything.  Happy to help. 

Quote from @Dennis M.:

I charge extra each month to cover water because I pay the water bill . I bought the washer the dryer and utility shop lighting . I collect just enough to break even and some would argue that’s foolish however I only buy 100$ washer and a 100$ dryer . If it fails it’s not some huge financial lose or anything .

Why would I add responsibility and potential headache because in lower income areas laundry mats are really expensive ( price gouging) and often scary full of thieves weirdos druggies rift raft beggars . Offering laundry will keep the tenants from leaving for an apartment down the street and retains them over time plus if you do have a vacancy you can attract way more to your building and get higher rents . We all know turnover is your biggest cash flow killer That in itself is worth the trouble to throw some laundry appliances in

Good points. Ensuite/Onprem laundry is definitely a draw for tenant convenience.  

Quote from @Roy N.:

Originally posted by @Brian M.:

I just purchased a triplex in Phoenix, AZ and was recommended to install a laundry room on the property.  I received a quote to construct a laundry room and the total bid was for approximately $8600.  I'm not sure if it's really worth it, but wanted to get your thoughts?  I was told that this will help raise rents to be more competitive vs. comps in the area.  Anybody have any experience with adding a laundry room and is there any hidden costs / watch outs to be aware of?

Brian:

IMHO a laundry room is not worth it in a smaller building (say less than 12-16 units) and you will get better return (and less operating expense) with en-suite laundry.

Hey, 

 @Roy N

How would your numbers look to justify better return(s) with laundry ensuite? Wouldn't that mean more machines AND having to maintain each unit's WD separately?

Thanks for your perspective.@Roy N.undefined