All Forum Posts by: Account Closed

I live in North Central Phoenix but would also be interested in a meetup or something along those lines.

Hey everybody,

The insight on these forums is great, every post is insightful, and I’m glad to be a part of it now...I’m addicted to BP now!

So taking advantage of being able to talk to so many like-minded investors, I’d like to ask how you all narrowed down the direction of your investment plan?

I have a residential/commercial appraisal background (so i’m familiar and comfortable with numbers and seeing a deal), i own a couple rental homes and a duplex...now what?! I’ve looked at many avenues:

-NNN single tenant commercial

-more residential rentals

-smaller multi-family (duplex to fourplex)

-fix-n-flips

-potentially talking to syndicates to partner with and expand faster

*I’m intrigued with buying residential notes, learning more about MHP investments, etc but I rather stick with what I know.

I’m sure the above avenues can be all done together but for now it’s just me investing and I am of the mindset ‘pick one and commit’ despite me wanting to spread into everything at once.

I’m in this cycle of weighing pros and cons for each property type while not pulling the trigger on anything.

Anyway, any and all insight would be greatly appreciated. Maybe it’s as simple as just keeping an eye out for the best deal and just running with that, but it feels like i might find a better deal focusing on one of the property types. 

I’m in the Phoenix metro market if that helps.

Thanks everybody!

Respectfully,

Joe

Hi, there are a few points you might want to look into/ask:

Does CAP rate reflect only a 5% vacancy? Because you mentioned it currently has 0% occupancy. So from the looks of it, this isn't reflective of the current value.

Also, call around to other apartment complexes in the area and call posing as a renter. Ask if there are units available, ask how many units are available because it might take a while for you to move. (The purpose is to see what occupancy is in the area)

The occupancy is the biggest red flag (IMO). The seller wouldn't have to advertise, you would. In order to get the complex stabilized (at 95% occupancy), how long will that take? The NOI and CAP rate the seller gave you might reflect a property that may already be 95% occupied, not 100% vacant.

In the ‘appraisal world’ this is the difference between an ‘As Complete’ value and a ‘Stabilized’ value. Big difference.

Good luck though. It’s exciting to get into this investment world but don’t let a fixed up vacant complex deter you from your own due diligence vs. just listening to the seller.