All Forum Posts by: Frank Hinck

@Daniel Anshus

I don’t see much for $300-$400k that cash flows $200/unit/month and I’m constantly analyzing deals. I see you posting tips & articles on LinkedIn all the time, send me something good if you see it come up.

@Cole Bigbee

Good thoughts on splitting it up. When building where are the utility services located? Does both sides have electrical & gas services? Do both sides have overhead & drive in doors, front entrances, restrooms, office space?

@Tony Gunter

I would consider the tenant mix, is a retail shop going to want to be next to a plumbers office? Probably not. Maybe next to an insurance office tho? It’s surprising how selective property owners end up being even when offered occupancy vs vacancy when considering who else would be a good adjacent tenant. Sounds like that building might be better for an owner occupant or 1 tenant if you take the demising wall down or knock a few holes in it.

With $150,000 to invest, I'm looking at 3 duplexes in Minneapolis/St.Paul (where I live now) each $200,000 cost that cash flow $350/duplex per month so $1,050 total, or 1 Long Island duplex (where I'm from) for $550,000 that cash flows $650/month. Net Income includes PITI, 8% maintenance reserve, 8% vacancy reserve, property mgmt, and landscaping/snow. Do I want to have 6 units over 3 properties, therefore more tenants, furnaces, roofs, liability for $400 more per month, or 2 units at 1 property and less tenants, infrastructure? At the end of the 20 year mortgages the 3 houses would be worth $600k and the 1 house $550, both will get average appreciation. What's your thoughts, what would you do, and why?

@Brett Blalock

Offer the seller an owner financing opportunity, if they sell to you 10% on the land value - interest only - with a 2 year balloon payment then you can list the land as equity and get a construction to permanent loan on the property.

@Tricia O'Brien

I spoke with Chrissy from Moxie today, she said all the right things, 300 properties under management, team of 4, online payments, low fee for placing residents and reasonable monthly fee.

@Mike Celli

Yes many solo practitioners own stand alone buildings. There are many multi tenant medical buildings, depending on the market usually large parking, nice lobby, elevator, managed by a small or large property manager. The buildings are B or better and tenants as Dr’s have better credit so it’s expensive to buy into these buildings, tenant improvement construction allowances are usually $40sf so be prepared with capitol or plan to refinance every time a new tenant needs to build. Find a medical specific commercial broker to list the building, and a Commercial GC with medical experience.

@Kaylan Haight

J Scott book to estimating rehab costs.

@Sammy Luke

I’d find a Commerical broker who understands developing raw land and get their opinion on what the market needs and the rent that could be paid, then find a builder to estimate costs.

If presented with $200,000 would you rather, try to elaborate on your answer if possible :

A - buy 4 duplexes at 20% down ($160,000 with $40,000 left over for cash flowing repairs, vacancies, etc.) and have to be a fairly active Landlord now that you have 8 doors in the same city?...

B - 1 apartment building roughly worth $800-$900k to get the 8-10 doors all under 1 roof to minimize management and some aspects of maintenance....

C - invest into a Commerical building (I am a Commerical GC professionally and understand the aspects of leasing) with another seasoned commercial owner?