All Forum Posts by: Imran Raz

@Imran Raz there’s a number of variables involved and depends on your long term goals, but I would ask where is your money going to get the highest returns? Depending on the appreciation rate and market your in, will you be able to get maximum returns for holding it another 3,4,5 years or more? If I have 100k, can I can put that into a Multifamily and potentially double my money in 5 years and reinvest again. Multifamily will have higher returns due to leveraging economies is scale and less cost per unit. If the market is favorable for selling in your market, I would sell and take the money and reinvest.

Thanks, @sara. I was also thinking about investing in multifamily thru cadre or similar funds.

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I am in a predicament of what to do about my rental property. I would love to hear your thoughts.

Here is the current situation:
Current Loan Balance: $204k
Maturity Date: 2036
Loan Interest: 5.125% - Changes each year based on Libor rate
Current Payment:$2193 - including escrow
Current Rent : $2300
Current Cash flow: ~107

Needless to say, cash flow is my biggest issue.

Here are my options I can think of:

Refinance for 30 years mortgage
Rate:4.78%
APR:4.819
Payment: ~1700 including escrow
Closing Cost to be approx: $8000

Finance for 20 years
Rate:4.875
APR: 4.9
Payment: ~1900
Closing Cost to be approx: $8000

or sell

Market price: $300k

Take the balance and invest in multifamily

My last tenant moved out 2 months ago and now the house is in the market for rent. I painted the house and fixed many other minor issues to make the house looks great. The roof was newly installed 1 year ago and the kitchen was renovated a year ago as well.

Let me know your thoughts? Am I missing any other viable option?

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Just re-opening this topic to provide an update. It appears there is a class action in Florida for Cast iron pipes against insurance companies. (https://www.pipelawsuit.com) I contacted them and they mentioned that I am qualified to be part of this class action. They sent someone to look at the situation and I provided them with copy of my insurance coverage. They told me not to do any work yet while this is going on and in case of blockage, just call the plumber to open the clog.

So far I've been using Root kill and other suggestions posted here and drain is running good for now. What do you guys think about this sort of class action? Is there possibility that they'll pay for the expense of replacing the cast iron pipe?

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Originally posted by :

Don't worry, something will turn up just keep looking. Missing a bad deal is better than doing a deal just for the sake of dealing.

I completely agree with you, I've got excited for this deal but looking at all the responses and further research, I don't think it make any sense to pursue this deal. I rather wait for a better deal to come along.

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Originally posted by @Carlos Zapata:

@Imran Raz

Low income, low population, i will not invest if population is decreasing, are you planning to manage the property? i agreed with @Account Closed you can find better deal in a growing market here in Florida

I will not be self managing since I am few hours away form this location. Looking deeper into this, I am convinced that this town is not growing at all and there are no big companies nearby to support strong job market. Thanks for all the input.

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Originally posted by @Account Closed:

Your 12 unit multi houses nearly 1% of the entire town. Also mentioned that in the Last couple of years, population is decreasing. Seems like there is not much future for the town. And even now it is only a 7.8% cap rate? Also there is 12 tenants to deal with. What if one or two leaves suddenly? Is there enough people looking for rental in the town?

That's a good point, according to the owner it is fully occupied but if any tenant leaves, it might be challenging to get it rented.

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Originally posted by @Andrew Johnson:

@Imran Raz So maybe a couple of thoughts:

1.) Not all "small towns" are created equal. Some are 30 minutes to a decent job epicenter and just appeal to people looking for a little more space. You might end up with a handful of apartment buildings for the people that want to live/work at the local businesses. In other cases, a small town is a dying or dead town where nobody is buying and everyone is leaving. I'd hazard to guess it's more risky buying in a small sub-2,000 population town, it's less like that I'd do it, but it doesn't mean that I would never do it.

2.) Take the "why is the owner selling" and just throw it in the trash. You'll never know (unless you have some unbiased 3rd party data) about their strategy, what their plans were 2 years ago, etc. I'm a buy-and-hold investor but if I were to sell I doubt I'll shout from the rooftops: BUY MY WORST PERFORMING PROPERTY! It doesn't make any sense. But let's suppose this is his profession. He's better have detailed records for all of the collected rents, expenses, etc. After all, he's a professional and does this a lot...right? So there should be more than "rough estimates"...

So the net of this is that I wouldn't rule out buying in a tertiary market. But if that main market (for some reason I'm thinking about Buffalo, NY which has lost a massive percentage) isn't growing I don't know that I'd be running to invest it's a 2,000 population suburb or a sururb...

Thank you for good insights, looking further into this town, it doesn't sound like a "up and coming place" Population is on steady decline.

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Originally posted by @Brendon Woirhaye:

Does the town have a future? What is the income source for your target residents? If there is one employer in town and they leave, you may have unrentable units.

I've done bit more research and it seems median income of this town is very low ($22k). 30% population is below poverty line.

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I came across a deal in a very small (tiny) town. Population is about 1800 people and trend seems to be downward from past couple of years. It is a multifamily building with all 12 units rented out. The seller owns the building for 2 years and he is looking to sell because he is in Fix and flip business and not in the long term hold. He also mentioned that all units are rented out and have long term leases. Rough estimates of what I was given so far seems to show 7.8% cap rate and 12% Cash on cash return. My real question is, would you consider buying a multifamily building in a very small town? is it purely depend on numbers? are there any benefits of going into small town? what are cons beside obvious ones.

Thanks in advance.

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Originally posted by @Joseph Brickler:

Most large drain augers have cutter blade that will cut and not pull roots. Have the cut the most but, use Ridex or other products with Copper Sulfate in them or use copper sulfate can be found at the older hardware/ seed and feed farm store. Put it down the last thing you do at night for five days straight ad that will kill the remainder of roots. Then do it yearly you should be good. I have done for years without issue

Thanks, I'll definitely try that and hopefully my tenant do it regular.

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All Forum Posts by: Imran Raz

Imran Raz has started 9 posts and replied 47 times.

Post: Should I Refinance or sell? Here is my situation..

Post: Should I Refinance or sell? Here is my situation..

Post: Roots in Sewer line - Estimated cost over 10k

Post: Deal in small < 1900 population town

Post: Deal in small < 1900 population town

Post: Deal in small < 1900 population town

Post: Deal in small < 1900 population town

Post: Deal in small < 1900 population town

Post: Deal in small < 1900 population town

Post: Roots in Sewer line - Estimated cost over 10k