All Forum Posts by: John Conte

So the NOI is around 21k, the cap rate on 175k at 100% occupancy is 12%. Even 10% supports over 200k so that's sort of where I'm coming from

Right, and according to the ROI the building is worth more than what the agent has quoted me, the agent thinks the building should be listed at the same price when it was at 80% occupancy at 9% net vs now at 100% occupancy which would be yielding 12% net. Just wondering if thats the very high end of the market at 175 and anything above that is kind of pipe-dreamy

They are a commercial broker, and admittedly I have less experience with those comps

I own a 5 unit mixed use building in the 44110, which I understand a lot of people are avoidant of but has been good to me, for the most part. Considering selling as I'm just in a different place in life, and the agent I'm talking to at the moment quoted me 175k (bought for 85) when the building was 80% occupied and would be generating a net 9% ROI at that number. I've just rented out the final unit, now the net ROI is around 12%, but the agent is still recommending the 175 number. I'm just curious how off base I am in thinking it should be around 200-225, based on the ROI, condition of the building, and multiyear leases in place for the whole building.

Looking to see if anyone has recommendations for sales agents in the area, I'm going to put my building up on the market and I'm in contact with a realtor now, but they seem to be a little less than motivated. Would love some input on people with experience in this field and discussion on what a realistic price point would be. Thanks all!

So I bought my initial investment property in 2017 in Cleveland, about a month in, the boiler blew. went out, replaced the whole thing, 17k later. Not sure about the ethics or legality of naming the company so I won't do that here unless advised to. Everything was going well, then Friday my super called me and said he smelled smoke, and that the boiler went. I'm not in HVAC but I know that a brand new boiler is supposed to last more than 4 years. They told me they had to look at it on Monday since it was too hot, and they had to get the "right people" in. I'm fairly certain they're going to try to screw me, and get me to pay for a replacement. They're being shady about the warranty and at the moment I don't have access to the paperwork involved with it, so I'm really at a loss as to how to proceed. Is my best shot dealing with the company or taking it straight to the manufacturer? Legal representation? Consumer Protection Bureau? If anyone has thoughts I'd really appreciate it. Thanks!

Yea it feels fishy but its a not uncommon practice in car sales so I was just unsure whether that was a thing that happens and its not really as big a deal as one might think. But it seems like it is. Many thanks!

Forgot to add:It’s a 5 unit, 3:2 commercial/residential split in Cleveland, in which 4/5 units are rented out.

Hey everyone, I bought my first building in 2017, for 85k all cash. Put another close to 35k Into it, bringing me to 120 in equity (one of the improvements was a new boiler for 17k in 2017, not sure if i can declare the depreciation on sale or not). The building is unlisted, but someone is interested in buying it, and my lowest price is 160k, which, after capital gains would probably be closer to 149, clearing 15k in profit. I haven’t had the building appraised and the buyer is motivated. The buyer is also asking me to declare the sale at around 90k, which is certainly a red flag, so wondering if thats something to avoid altogether. Thanks everyone!