All Forum Posts by: Account Closed

@Account Closed

I have heard that multi-families are better than condos, but my analysis shows me otherwise. Please advice if I should pull the trigger on the below condo:

Condo: Offer: 62,500; Rehab: 10,000; Rent/mo: 1300; HOA: 200, Tax: 1400, Maint: 1716; PM: 1430, Admin: 300; 25% down @ 4.5% interest; NOI: 7051, Cash Flow: 4201, CAP: 9.52%

Multi: Offer: 82,000; Rehab: 30,000; Rent/mo: 2000; Tax: 4000, Maint: 2640, Insurance: 2500, Util: 1300, PM: 2200, Admin: 300; 25% down @ 4.5% interest; NOI: 9050, Cash Flow: 5318, CAP: 7.95%

I'm transitioning from perusing small residential multifamily properties (2-4 units) and SFH's to larger 10+ unit properties. It's been easy to compare deals since the financing has been strictly conventional fixed rate mortgages. However, how do I compare a large multifamily deal, where financing is being offers as ARM or Balloons VS. the conventional fixed rate mortgage deals I have in the past???

How do I make sure I'm achieving similar investment returns with such different financing options? ARM/Balloon vs Fixed Rate Mortgages???

@Account Closed

Hi Greg, I just emailed you back.  The cash flow is the net income on each of the properties.  Hope this helps.  Thank you.

Hi all! I'm trying to use the BP calculator for Flipping and for Renting and only have 3 uses left. I am looking to purchase a 4 unit house, in foreclosure and was planning on offering 30,000 for it. However it needs a lot of work and I was going to get a private money loan to cover the rehab costs and a separate loan to purchase the house. I have about 10k to put down, so that would make the 30k purchase price a 20k total loan amount, and then and 80k loan for rehab costs. Since I am not living in the property I won't qualify for a 203k loan. Is there a way to calculate two loans in the BP calculators? I can't total the loans and do a loan for 100k in the calculator because they will both have different terms. Thanks for the help

Hi all,

I have a potential seller who is clearly mentally ill. I've talked to her on the phone a couple of times and it's certainly interesting each time. 

Obviously, entering into a contract with someone who's not of sound mind is questionable. Worse, entering into a contract with someone who isn't competent leaves me prone to a voidable contract after the transaction has taken place.

Options I'm considering:

1. Ask her if she has an adviser, attorney, or other person who acts in her interest. Contact that person and conduct the transaction through the two of them. 

2. Hire an (ethical) attorney to conduct the transaction on my behalf (which I would do for #1 as well).

3. Scrapping the whole thing before I get too deep.

All advice is appreciated.

Best regards,

Craig Norris

@Account Closed  The details of the properties, including addresses, are listed on my website under "properties for sale" (see my signature field for the link).  Thank you.

Hello everyone,

I manage a 10 unit complex here in north Georgia. We just had a commercial appraisal come back at $850,000. We owe $518,000, but it's a balloon with 3 years left. We are trying to figure out how to move it over to a long term fixed. The bank we are with is too small and won't do the refi for us.

Any suggestions?

Thanks! 

I own 3 rental properties in Memphis and have been renting them out since I got them.  However, last year I tried to sell them at 25% below market value and still only got offers for less than the loan amount.  I ended up having to put tenants in it again after not receiving any income for a year in addition to putting in another 20K to fix these properties up to make them turn key.  I can't refi because I am self employed and I can't do a short sale or approach the banks as to not to jeopardize my excellent credit rating.  

I would like to sell these properties as a package. They generate at least 1K/month in net profits (after PITI and management fees) and don't need any repairs.

Is there any other strategy I could use to offload these properties at a minimum of breaking even or just a tiny bit of a profit?  

I am currently looking for MFH's in CA and would also consider an exchange or other unique options.  Please advise!

Hey Gang,

...

I am looking to buy in Memphis (38115) from a turn key provider. I have found a few forum threads where people who have bought TK rentals have found when the go to sell them that the house is not worth what they paid for it ... I would like to avoid this if possible and wanted to get advice on how to properly determine the market value of the property....