All Forum Posts by: Jennifer Stradtman

I sent you a connection request.  If you respond I’ll reach out with details.  

No. I’m not interested in splitting at this time.  In the future, If I sell individually I’ll just list with my realtors as I’m sure I’ll get multiple offers in Nashville.  

Thanks for asking. 

My partner and I just purchased an existing building, 4700 sq. Ft., block bldg., concrete slab, roof ok, in 2.5 acres in Carrabelle, FL. Paid cash. Contractor believes we can get 6 units out of it - 3 2 bedrooms and 3 1 bedrooms. His labor estimate is $100k. Would need to be rezoned. Initial discussions with p&z look favorable. Would like to also build additional buildings on the property of similar size. Workforce housing is needed in the area for state workers, school teachers and hospitality workers. Looking for a financial/strategic partner to help with this project. If interested, I will share more details on a call. Property is about 1 mile from the Gulf of Mexico, x flood zone. 4 pt. Inspection available. Survey available. Network of subs in the area.

Nashville - 3/2.5 townhome $30k revenue

Nolensville- 4/2 on 8.3 acres - $40k+ potential revenue

Carrabelle, fL - duplex , 2/2 x2 $24k revenue - potential for $35k+ with new tenants. 

Saint George island, FL - 9/8 beachfront with pool, short term rental $250k+ revenue

All in good condition or newly renovated.

Not looking for a realtor.  Private sale only. 

Thank you @Greg Dickerson. That is what I needed to know.  Makes sense.  

Just out of curiosity - what is a standard timeframe for something like this start -finish ? Is there a standard? 

Thank you @devan Mcclish.  We got a firm quote for land clearing grading today and it’s coming in around 30k. Is $140-145/ft. Including site prep, GC fees, and construction costs in a normal range?

 The seller is giving us his architectural/civil eng. plans and the history of his zoning approvals which have since expired. We’ll have to resubmit for variances one setbacks.  But, the plans will need to be stamped.  I don’t know what stamping plans costs.

I don’t know how real any upside on a sale price would be - maybe $310-325k?  I have an 1115 sq ft unit that just appraised for $289k nearby which would support this price range.  But, do you think the market will continue to rise over the next year in your experience?  I ask because some agents tell me it’s slowing down. 

I like your number of $50k per unit.  I want to figure out how to get it there if it’s realistic in this project. 

Thanks for your feedback. 

One of my bankers referred me to a GC she has built spec homes with successfully. We’ve been talking about replicating that model. He finds land, gets it zoned, handles site prep and construction. He approached me about a lot that is off market and in a zone good for multifamily. I reached out to a friend to invest with me. Is this a good deal? What else do I need to know going into contract?

$365k land purchase price.

$140-145/ft. Construction including site grading, tree removal, current house removal, fencing around perimeter, 6 build with 2/2.5 1250 sq. Ft.  Located in East Nashville, TN and 5 minutes from downtown Nashville.  Street has several new construction multifamily units.  Anticipated conservative sales price $300k each.  

My friend and I will buy the land. We will set up a construction loan at 85%LTV or 100% construction cost, whichever is lower. Banker will let us do 20% down which land purchase will cover.

Contractor says we can structure the loan to include interest payments and marketing money - creatively. Assuming 7% sales commission worst case.  12-14 month project.

Would you do it?

Is this a good deal?

All responses appreciated as we have to pay for the land by Friday if we proceed.  

Jennifer

$44k NOI. I requested all rental agreements. I spoke with a banker today who will do it for 20%. I'm putting in an offer at $660k. To me the numbers still work at this price. But, I'm not sure I'm looking at it right. This will leave me $1k/unit/yr. for repairs plus landscaping plus any deposit monies for damage. I feel like I'm missing something.

Thanks for the tip on the podcast. I’ve been listening to all MF podcasts. Will check the lender podcast, too.  

My realtor brought me an 8 unit multifamily opp. I’m conducting my due diligence.  
all currently rented for $850/mo. Taxes are $7200. Likely below market rents by $100-200/mo. No vacancies. Sale list price is $720k. 

Building is 20 yrs. old. Inspection not yet completed. Hiring separate hvac person and will inspect hot water heaters, appliances, etc. likely will have a roofer inspect and will get a termite bond. 

Commercial loan, 20% down, best available rate. 

Other than backing out potential repair costs what do I need to know on multifamily to establish an offer? Is there a rule of thumb per door?

Investment Info:

Single-family residence buy & hold investment in Tallahassee.

Purchase price: $187,500
Cash invested: $44,000

College rental 5 bedrooms rented individually. Total rents collected 2,450.

What made you interested in investing in this type of deal?

The returns are great, low sales price, exceeds all my minimum return thresholds.

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

Had a family member refer me to a Realtor/ investor who is a top agent/ broker in town. People bring him deals. He gave it to me since I bought two other properties in 30 days.

How did you finance this deal?

20% down and conventional loan.

How did you add value to the deal?

Haven’t made any changes yet but will reconfigure 5th bedroom to a bathroom to get 4/4 and increase rents $259/ month.

What was the outcome?

Will get higher rents in two bedrooms.

Lessons learned? Challenges?

First out of state purchase. Best to network, know people, ask questions, do research.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Ask for a warm intro.