All Forum Posts by: Joshua Rottenbacher

Asking price includes purchase price and closing costs.  Property does need some minor repair and TLC. Major Repairs needed included update electrical panel, fix/replace wooden porches, repair chimney and reseal above roof, patch and paint interior walls.  Best course of action is to get the property rented out and use the Cap. Ex to build to improve upon the property and wait for the market to appreciate.  The local market is deemed stable with an estimated monthly rent for this property to be $750. Property As-Is value: $47,000.

Access to local downtown shops, hospital, and community park. Little Falls is located within 20 min. of the Adirondacks and 30 min. of Utica, NY.

Appraisal Report available upon request.

This TURNKEY rental won't last. Currently being rented out in beautiful Little Falls, NY.  Access to local downtown shops, hospital, and community park.  Little Falls is located within 20 min. of the Adirondacks and 30 min. of Utica, NY. Property has seperate electrical meters with all other utilities fully functional.  Asking Price includes purchase price and closing costs. Does need some exterior paint which the city may pay for as part of their beautification initiative. Current market rent for the area is $575 per unit. 

Appraisal Report available upon request.

This corner lot house includes a driveway, new deck, and is currently being rented out by stable long-time tenants.  Property is located within minutes to downtown shops, hospital and access to major highway.  This property is ready to go and has the potential to earn more income with a little TLC.  All major systems are up-to-date. 

Don't miss this Diamond in the Ruff opportunity!

All offers will be considered.

This diamond in the ruff is located in the beautiful little town of Little Falls, NY just 20 min. outside of Utica and within an hour from either Syracuse or Albany. This property is fully updated and currently being rented out. Potential rent per month per unit for this type of property in the area is $650. A solid investment plan would be to hold onto the property and sell it later on after some TLC to truly maximize your ROI.

Looking for cash buyers or investors who want to partner up.

Property has separate washer and dryer hook-ups for each unit and a furnace that will outlast the house.  New water heater and roof.

Comes with a two car driveway.

Price and terms are negotiable

This diamond in the ruff is located in the beautiful little town of Little Falls, NY just 20 min. outside of Utica and within an hour from either Syracuse or Albany. With some minor repairs and TLC this property is ready to rent out with estimated $750 per month at minimum. A solid investment plan would be to hold onto the property and sell it later on to truly maximize your ROI.

Looking for cash buyers or investors who want to partner up.

Property has solid foundation and structure with a detached two car garage located in the back.

Price and terms are negotiable

Hi @Ernest Zamora,

Welcome to BP! I too am a new investor looking to get into wholesaling. You will find that there are lot of people here including myself who share your vision. You will also find an enormous amount of information, resources, and experience from savvy investors.  While I can't be that savvy investor for you I hope that I can be one someday soon. I would be more than happy to co-wholesale with you or share some of my already acquired knowledge. Feel free to PM or connect with me.

Best of luck to achieving your vision.

Sincerely,

Joshua Rottenbacher

Hi Jermaine,

I hope you were able to find a way to determine the value of 32 unit Apartment. But just in case you didn't I thought I provide you with how I was taught by professional real estate investors.

So there are many approaches to determining ARV or Value of a property. For multi-family units with 4 or less units it is still considered a single family and you can use the usual comps comparison approach and find similar properties in the area.

For multi-family units with 5 or more they are considered commercial and the process or rules for determining value are greatly different. For one thing as you probably have noticed it is hard to get accurate comps as there is nothing to compare. Because it is considered commercial it is a whole new world of investing. 

You start by determining your total potential annual rental income assuming 100% occupancy and no loss. Then you subtract out vacancy, rental loss, and daily operating expenses for the year. This will give you your Net Operating Income or NOI for the year. Take the NOI and divide that by the asking/purchase price to get the Cap Rate. The Cap Rate will help you determine if the property has potential in a Market or if it is a bad investment. Typically you want the building Cap Rate to be higher than the Market Cap Rate which can be determined by contacting a local Commercial Real Estate Broker. Alternatively, if you know the Market Cap Rate and NOI you can determine the value of the property. After you determined the property to be a good investment you will want to then calculate the Debt Service Coverage Ratio (DSCR). This is calculated by taking the NOI and dividing it buy your Annual Debt Service. If you plan on buying the property outright and not financing you don't need the DSCR but then you hurt your Cash Return on Investment (CROI). CROI is calculated by taking the NOI subtracting your debt service to get your cash flow and dividing that by your initial cash investment or down-payment. With these three numbers you can determine whether or not a Commercial Property is a good investment or not. A good DSCR is above 1.25. A good CROI is between 5 - 15%, above 15% may need to do a little more digging into the financials or check your numbers, below 5% walk away.

Hopefully that helps you determine future value of Commercial Properties you intend to buy.

Sincerely,

Joshua Rottenbacher

Wow! This story is legendary! Like the golden goose of real estate flipping. There is so much to take away from your experience. But the one thing that stands out to me the most is get out there and just do it. Be smart about it but don't worry about "potential" problems that may come up.  Just address them as they come and enjoy doing what your doing. 

Congratulations @Willow T. for a successful rehab! 

@Dennis Canon Hi Dennis! Thank you for welcoming me to BP. I would love to connect with you. I'm always looking for other investors to connect with. I look forward to working with you.

@Ali Boone I am currently awaiting my class date for Air Force Officer Training. I got selected for Space Operations Officer. Other than that I don't know where I will be stationed or what I will specialize in. I know if I could pick any career in the aerospace industry it would have been your job..lol. I love flight test and electronics. How did you like it?