All Forum Posts by: Greg Kasmer

@Frankie Lotrec - Did you run an analysis on what the ROI would be by adding a 5th unit and what the overall value of the property be? The reason I say this is that with a 5+ unit a lender will evaluate based on NOI and a cap rate, so adding a 5th unit COULD (or could not) substantially increase the value of the building and make it worthwhile to refinance and pay off the existing loan (that is tied to the "old" quad) anyway. In addition to checking the loan docs you should also check the zoning in this property. Is it zoned for residential or multifamily 5+ units. That may be harder to change as well. Good Luck!

@Cory Kerr - I agree with Kevin's comments. I purchased a quad with old boilers and the main factor with me was using the existing system and not having space for ducts. I would buy more efficient new boilers and then solve for A/C if needed... Good Luck! 

@David Robert - Based on what you're saying it sounds like certain sections of drywall/wall are better off coming out and replacing then trying to repair. I would also have a general contractor take a look at the damage and get an estimate from them. Good Luck!

@Sean Spagnola - I always like to have photos of recent comps in my back pocket to help with the design of a BRRRR to ensure that the finishes are similar/same to the market. If this is a long term hold you'll want to have finishes that match comps, but are also still very durable for tenants. Good Luck!

@Sarah Rilling - I always like having a 1:1 conversation with the potential coach/mentor to get a flavor for how they work with people.... basically to see if their is a connection. I joined a coaching program because I connected with my coach and I also said "no" to one because they wouldn't match me with a coach until I joined/paid. 

@Mario Morales - As some others have said I think the strategy is sound, but the key would be to find a distressed property that you can drive up the value with renovations so that the new value is 25% higher than the purchase price so you pay back your HELOC. You'll want to incorporate interest costs on the HELOC while you're using it, but that will add to your holding costs in addition to utilities, closing costs, etc.. Good Luck!

@Anthony Zotto - By the way you ask the question I assume you're going to self manage the property instead of using a property manager. If I were you I would get a good flavor from the tenants how they interacted with the previous owner, essentially, how they paid, how did they make repair/maintenance requests, when/why did the communicate with the owner, etc... In essence you want to understand their background. Then, I would share with them how you manage properties and what your expectations are for them as well as you - essentially explaining how you work with people renting from you. Inevitably there will be some "friction points" that you'll have to discuss/mediate, but ultimately if they are not willing to adopt a majority/all of your processes, then I think you mutually set up a date that works for them to move. e.g. 60 days, 90 days, etc... You want to be understanding and not "kick them out", but at the same time let them know you operate differently than the previous owner and if they would prefer not to operate that way that's a decision they can make. However, if they can adopt most/all your properties I think you also established a stagged approach to increasing their rent. (Maybe increase $150 every 6 months until you get to market rents) 

@Arthur Tolentino - I'm in the process of finalizing a BRRRR on a quad in the Philly suburbs. I bought it last year and thus far have: 1) Appealed assessed value to bring down taxes, 2) Got better (less expensive) insurance, 2) Rehabbed 3/4 units, and 3) increased rents $300-$400 per unit along the way. Right now I'm considering refinance options to pull out some equity. The ARV on small multifamily can be a bit tricky as most appraisers will like to use the comparable approach as to an income/NOI approach typically used by larger (5+) multifamily properties. Message me and we'll connect!

@Shaun Ortiz - I did BRRRRs single family homes, but transitioned to multifamily... not necessarily to get away from BRRRR investing, but to do it on a larger scale. In a way, I think the BRRRR process is really the process of "adding value" to a property and then pulling out that forced equity as much as you can. To me, that can be done in many asset classes, but I think most people associate it (nowadays) with single family residential investing. In fact, right now I'm looking to BRRRR a 10-30 unit building/property if I can find one! Good Luck!

@Matt Schreiber - I do believe it's tough to get 2-4 multifamily to cash flow on the market right now. I think you need to treat those 2-4 buildings almost like larger building looking for upside in rents and/or reductions in expenses in order to get it to cash flow. I'm about to stabilize a quad that is now cash flowing (after 8 months) because I appealed taxes (and won), got better insurance, and then renovated 3 of 4 units and brought rents up $300-$400. At first it wasn't cash flowing, but now is... Happy to talk if you'd like. Good Luck!