All Forum Posts by: James Kandasamy

@Scott Weaner I believe it rodent.

@Kevin Harrison Hi Kevin,

Thanks for reminding about this issue. I went ahead and called a pest control services which does monthly services. from then on, i don't see anymore issues. I have to pay for it but its just so much easier to close rather than getting calls from your tenant.

James and Shanti

The Tenant profile is ok. The area is in a good  location and has good long term growth potential. @Al Williamson Do you think this will be a good project even though my expectations of return are higher ?

James and Shanti

@Dave Khalsa

 Hi Dave, The way to get your money back is to increase value in MF after value add. Then you refi it out at higher value. That is the one of the key value of MF investing. If you do a search on MF value add you can read more about it.

James and Shanti

Hi BP community,

Let me know whether you think this is a good deal. A 25 units MF property with 5.26% current CoC. My analysis shows that if I do rent increase and RUBS of water, I can bring the CoC to 11.35% and get 48% of my cash back in 12-18 months. The returns seems to be low or "normal" compare to the usual SFR space that I am used to. I am thinking of passing on this deal due to the low excitement that i get from the potential returns. My dilemma is , is this "Good" return in this hot seller's market . Could this be a good training wheel project in MF space ? .Am i passing up a good opportunity here ?

James and Shanti

Hi @Carolyn Lorence

  A CFO is a certificate or occupancy that need to be given to building that is not operational for certain number of years. The issue is the building need to be brought up to latest codes.

I am still waiting for the rehab number from my contractor. Will keep everybody posted.

James and Shanti 

Interest rate is just one part of the equation. Its a tree in a forest.  What is the amortization schedule? Downpayment requirement ? Is the rate fixed for 30 years or Adjustable rate? is it a first financing or refinancing terms. Is it based on "Good" credit score (720-740) ? Are they charging any points to get you that rate?

.Put it into a spreadsheet and see how much is your cash flow. After getting a cash flow, does it meet your investment criteria for this year. After that check for next 3-5 years or longer.

Based on my past 3-6 months experience, if you are just talking interest rate for 30 years fixed with 30 amortization and 20% down for a good credit score. That's a bad rate. You can get it at 5% rate easily if you shop around. Talk to a few mortgage broker and shop around. Be patient and get the best deals. The lending business is complicated in terms of numbers with many ways for lenders to make money. Its very competitive too as the economy is so strong and many investors are blindly jumping into RE. 

James and Shanti

@Travis Lloyd

 That's great advice. In fact i asked the seller's agent and the answer was not very clear other than electrical issues.  However the rest of the building owned by the same seller is being mismanaged. I will get the details by getting more info from different authorities etc. Thanks.

James and Shanti 

Puling this thread up.

Hi BP community,

We are looking at a 20 unit MF deal that has not been operational for past 3 years. It needs electrical issues, interior, exterior, AC,new roof  etc. I believe this unit need a CFO and the building need to be brought to latest code, since its has not been operational for more than 2 years. I am assuming a 12 month period of no income as we have rehabs plus CFO approval from the city.  Anybody knows what are the challenges in this type of deal ? Anybody done this type of turnarounds?

James and Shanti