All Forum Posts by: JC Chavez

Do you have a spreadsheet outlining the pertinent details about the homes available for sale? 

What are the age ranges for the homes?

I have a couple of questions regarding property taxes and value assessment in Cuyahoga County, OH. 

1) Is a 5+ multi-family apartment building considered 'Commercial' or 'Residential' in the eyes of the county assessor? I see there are 2 different tax rates depending on whether it is commercial or residential. Can someone who is familiar with the area tell me what township/neighborhood the zip code 44108 in? The pdf doesn't show it by zip code, just township.

2) Is the county property value reassessed on sale or does the same value, thus yearly tax burden remain the same even after new ownership? And if the property value is reassessed after sale, what is the new value? Is it based on the actual sales price or based on a new appraisal from the county?

Below is a snippet of the pdf and a link to the actual Cuyahoga county rates of taxation for 2020-21. 

https://treasurer.cuyahogacoun...

I have been considering a few multi-family and commercial properties in the Cleveland metro area. I initially was excited with the thought of OOS investing in this region due to relatively low cost acquisition, better CAP rate & NOI, and better cash flow. However after further research, I have become hesitant pulling trigger. Some of the concerning factors include relatively high crime(according to crimegrade.org), poor job growth, poor appreciation, moderate to high vacancy, etc.

I am not sure if I am to the point of analysis paralysis and just finding excuses to support a thesis of "this just won't work", or if others have similar concerns with the Cleveland area in terms of future growth, stagnant appreciation, and high risk. I know there are great parts of Cleveland, but I am talking more about the Metro area before you get out to the nice suburbs. I would love to hear from those who have better insight and knowledge of the area than I do. I would also be interested in hearing your success or horror stories with projects/properties you've invested in. And if you have a totally different perspective, I would love to hear that as well. 

@Account Closed - thank you for your input. I haven't had a chance to speak directly with the PM company, so I am not sure why the vacancy rate is currently high.  Perhaps related to something harder to change like the neighborhood, or perhaps something circumstantial with building or units themselves.  It is a value add prospect so I am wagering on the latter, but I don't know until I complete more due diligence.  The property is in a populated suburb surrounding large metro area, so it should be able to fill.  Thanks for the table included in your response. 

@Greg Kasmer - Also, thanks for your input. I agree completely about the 'WHY', I'm just not there yet. I need more due diligence and to speak with PM company. It could be that building is not in the "best" area. Could be that the property is older and needs some light reno. It could be both!  I did review a formal inspection that was completed within the last 2 years and aside from some age related and climate related issues, it seemed to otherwise present satisfactory. It is an older building and has a boiler, which has me concerned. I know little about the maintenance and costs to replace if needed.  Also, I need to get more details regarding electrical, plumbing, along with any other potential cap ex items looming.  As far as financing, I am coming in with 20% down. I have found a lender who has given a soft okay given the limited data I have provided. Planning for a short-term bridge loan or "rehab/fixer" loan to get property back up to potential and then refi 12-18 months later. 

Thanks for the reply Taylor. My follow-up question is...Would you base the NOI on the current rents with the current vacancy rate, OR would you base the NOI on if the property was rented at full capacity? And I am not talking about pro forma rents, but more if the property was rented at it's 100% rate.

The property I am considering is currently 25% vacant. Obviously that is going to dramatically affect the NOI, thus affecting the market value. So would you base your offer to purchase on the current NOI with the standing vacancy, or would the value be closer to the amount if the property was fully rented? Or perhaps somewhere in between?

GOAL: I am looking to purchase a 10-20 unit apartment complex and trying to establish market value using multiple methods.

I understand there are multiple ways to estimate fair market value of a multifamily asset, but I am interested in hearing about your experiences with the ways you find most helpful. 

Also, I am looking for the best ways to find comparables on sold multifamily apartments nearby. Is there a good way to research this?

Thanks in advance!

That's great, congratulations on your deal. Tell us more...

Where is the property? How many homes park owned? Purchase price? Cash invested? 

What interested you in this type of deal? 

How did you find this property and how did you negotiate it?

How did you structure the financing?

How did you add value to the property and improve infrastructure?

What is your goal with this property? Exit strategy?

Challenges you encountered and how you overcame them? Lessons learned? 

Does anyone have experience with erecting manufactured, modular, prefab, tiny/micro homes etc here in northern CA?

I have a vacant lot and ready to place a dwelling. 

Back story - I own land in a developed neighborhood surrounded by other like manufactured/modular/mobile homes. My lot previously had a manufactured home on it, but it is clear and vacant now. There are utilities on the property. My goal is to place a manufactured/modular home on the lot.

I have been researching home dealers and builders in the area. I find it challenging to determine the true costs and the potential hidden or surprise costs for a project like this.  I would love to hear anyone's experience they have had with going through the process of selecting a builder/dealer and completing the project. I am interested in learning what other things to expect that I may not be considering. My particular option is specific to CA, however I would be open to hearing about others experience in the western states. 

Some of the dealers I have been researching and speaking with are:

Factory Expo Homes, Factory Select Homes, Fleetwood, My Cavco, Baughn & Cameron

If anyone has experience working with one of the above dealers/builders and have gone through the process beginning to end, it would be very helpful to hear your recommendations and insight. 

If you any further questions, feel free to ask.