All Forum Posts by: Himanshu Jain

Persistently adding value to the properties via improvements, and raising rents has been the key for me. This has allowed me to raise the property value, refinance and reinvest in other properties. 

Hello folks,

I am looking to buy an off market MHP and I was wondering what due diligence I should do to come up with realistic valuations. I am also looking for what contingencies I should add to the contract to cover for any surprises later.

I will really appreciate if you can share your experiences.

Thanks

Himanshu

Hello,

I am looking at a multifamily property that is under Section 515 Rural Rental housing for elderly. I was looking for some insights into this program and the buying process. I will appreciate if anyone who has done similar deals, can take some time to throw some light on how this program works, how does the buying process works, any pitfalls or things to be look for as part of the due diligence.

I am going through the USDA document, but would welcome any comments and suggestions on these types of deals.

Thanks for sharing in advance.

Himanshu 

Hope this helps, Congratulations on your first deal, Happy Investing !

Does it have three units or four units?

I usually run my numbers assuming I am trying to release it and what it will take for me to re- lease it.

I would suggest to consider these things also and see if any of this would apply in your case -

Do you need occupancy inspection? How are you leasing these? Are you using an agent to lease it or you are doing it on your own? Are there any common areas? What about utility cost for the common area? I usually factor in higher vacancy rate? I would suggest to use at least 12 - 15% to be conservative. Because once tenants move out it will take time to get it rent ready and it will also take time to get it leased. The time to lease will also depend on the timing of the year.

Hi Theo,

You can go about doing all this in lots of different ways. I think all this would depend on how active or passive you want to be in doing all this.

Here are three suggestions:

1)You can look for a property manager/active real estate who can help with some or all of these.

2) Join a meetup group in your area, It helped me greatly in the beginning as it gave access to lots of people who have been doing this for long. Please make sure you are doing you due diligence before you hire anyone here.

3) You can use software like buildium, appfolio etc for property management and some other online services that allow for credit checks etc. I have used Transunion in the past.

Hope this helps

Himanshu

Hi Megan

Would like to know more about this event.

Originally posted by @Conor Freeman:

Freddie Mac has a pretty compelling debt product for student housing assets. These bullet points should help you in your due diligence process. 

http://www.freddiemac.com/multifamily/product/pdf/student_housing.pdf

 Thanks @Conor Freeman, This was very helpful. Appreciate your sharing this document

Originally posted by @Michael Le:

I have been told by my lender that the requirements for student housing agency loan are that you need someone with experience on at least 3, but preferably 5, student housing loans. So that is a much more strenuous requirement than MFH agency loan.

 Thanks for sharing this, did not hear that from any of the lenders I spoke too. I do have multiple options on securing the debt financing.

Thanks Jeff Greenberg All excellent points and very helpful. Appreciate your inputs.