All Forum Posts by: John G.

Hi all!

I've been investing in the small multi-family class C properties for 13yrs.  I am moving towards class B larger Apartments 20+ units.  Currently looking at 22 unit (4 buildings with garages) all built in late 90s and kept up to date.  As numbers go, it brings in $840/unit (2bd1ba W garage) Rents can be increased to 950-1000/month.  I guess my question is with these larger newer buildings...what are you guys seeing as a price/unit.  These ones are being priced at 100k/ unit.  Like I say, I'm used to buying the old class C stuff but not as familiar with the newer Class B stuff.  Thanks in advance for your opinions.

I agree with @Bob Okenwa.  Generally, when looking at off market properties you have more time for due diligence.  A roofer would hop up on the roof and get you an inspection/bid for free.  I would write it up as lesson learned and keep moving forward.  I will admit it sucks though.

I would talk to a business banker they should be able to help you pull some equity on the commercial lending side.  Of course there will be a shorter loan term (usually 5 yrs), potential shorter amortization (15-25), and higher interest rate.  In my own experience they look at the income more so than the secondary market lenders.

Hope that helps! 

Just looking at this on the surface, I understand questioning the age of the HVAC and water heater.  But, why replace them if they are not broke or operating inefficiently?  We have some from early 70's still rocking in our single families....even a furnace from the 60's.  I was given the advice many years ago when I got into rentals to just hang tight and see what happens....fast forward 10yrs and they are still kicking strong.

....my 2 cents

This is not a direct answer to your question but rather my 2 cents from my own experience.  I have done partnerships and honestly avoid them whenever possible.  One reason, is usually in your eyes no one is working harder than you.  Partnerships are good if it's the only option to making a deal happen and it makes sense financially.

I agree with @Jim Adams and no matter what you decide get it notarized. Personally in partnerships I've had a lawyer draft the partnership and it gets filed with the LLC we created. EXPECTATIONS need to be laid out in the open right out the gate in writing. While you can't think of everything its good to have the basics out in the open. That is also a valuable lesson I have learned.

In a situation similar to yours the same thing kind of happened and I opted out of the partnership and went it alone.  Best thing I ever did.  I sat down and figured out why I was taking on a partner(s).  Fear, confidence, sharing the responsibilities with others, fun to do the work with a buddy, Etc.  I found that all my reasons were based on going down an unfamiliar road by myself and felt it would be easier with a partner.  So I went it alone and it has molded and been the reason for my more rapid growth in investments.  No stresses of always wondering if the other partner is doing the same or more work than me.

After that I got active and found investors to fund projects so I could BRRR. Made them money and didn't need a partner that was going to take 1/2 or a 1/3 of my cash flow. There is a million different ways that can look.

Hopefully my quick rant helps you.

I would be happy to help you!

Just send me a message!

@Joe Splitrock I really appreciate your response! Thank you!

I have been searching the HEROES act trying to find if I can evict a tenant for violations other than non-payment of rent?  Such as I have a tenant that is violating the lease in many ways I.E. unauthorized guests living in house, disturbing the peace, damage to property, etc.

Any insight on this would be greatly appreciated, even if one could provide a link as to where it talks about it in the HEROES act.

Right now the section 8 units we have are the best paying ones.  Money shows up in the bank account on the 1st every month from the government.  Had some bad eggs but over-all we end up with bad eggs that are non section 8 renters too.  They do seem to stay longer I noticed as well.

@Joel Owens That's the crazy part is I have never signed a lease with them so I have no default to go look at.  They have owned the building for a while, bought it from the bank as a forclosure, and just never had me sign a lease.  I was here long before they bought it.  Kind of their fault.  @Ronald Rohde part of my question was if they can give me a 2 day notice to increase rent or just plain ask me to leave, or rather if there is a standard 30 day.