All Forum Posts by: Justin Young

@Matthew Cope this is something I’m dealing with currently. 11 properties (Oklahoma) and last year my total premium was roughly $700/month. My new policy that starts this month is now $1,365/month! Basically doubled!

I’m going to have to increase rents but my main concern, is this going to be ongoing every year?

Is anyone else worried that the price of insurance and taxes are going to increase so fast that renters won’t be able to keep up due to wages not increasing fast enough?

Anyone use Stessa? Is it good? Is there anything better?

I'm working on this deal, it's an off market deal,  nothing is in writing yet, I just need help trying to determine if the numbers are ok.

I know the owner of an apartment complex. He text me and said he may be willing to sell for the right price if I was interested and that he has one more offer coming in sometime this week.

The deal:

Its a 47 unit apartment complex ( duplexes and quadplexes). It also comes with a 3/2 house. Making it 48 units.

He wants $2,200,000. I asked if he would finance the 20% down payment for me, he agreed. (loan term and interest rate undetermined at this point)

It appraised four years ago for $2,200,000. 

I went to my bank and asked them if us ( me and two other business partners)  acquiring this property was a possibility and also explained the seller was financing the 20% down.  The seemed very optimistic and said they would like to work with us on this deal. To sweeten the deal for the bank we offered to also put up three of our rent houses that we own free and clear as an additional down payment. It comes out to about a 25% down payment total. ( We are still waiting for the loan committee to complete the spread for the final word).

It would be a 20 year loan from the bank. 

The numbers:

48 units at $625 for total rent of $30,000/month

$13,000/month for the bank mortgage 

$5,400/month for the 20% down the seller financed ( if I get the terms I want).

$1,900/month for the water bill 

$1,100/month property taxes

$500/ month insurance 

$2,100/month vacancy (7% vacancy rate)

I'm still waiting to see what the maintenance expenses have been for the last three years. 

The roofs are less than 3 years old and the exterior is in great shape, it has also been painted within the last three years.

With these numbers (still waiting on maintenance cost) my cashflow would be $6,000/month. To me personally that doesn't seem like much cashflow for so many units.

My questions:

What do you think about these numbers?

Should I use a commercial lender?

Can I get a 30 year note instead of a 20?

Whats a fair deal on the terms of the owner financing the 20% down? I was thinking 10 years at 8%.??

Is there a better way to structure this deal? How would you do it??

Any help is greatly appreciate. Thank you in advance.

Hey thanks for the info guys I appreciate it! I recently read an article on BP and after a little bit of research I found "Propertyware" (which was mentioned in the article). Then I found "Buildium", both seem to be a all in one type of deal. Background checks, credit checks, property reports, pending maintenance issues and the tenant has a portal they can log onto and pay rent/send messages. The owner (if you manage other peoples properties) has a portal they can log into and check reports/rent paid. 

I recently started a business with a couple other guys, buying houses.I would like to keep up with every detail as best as possible.  I am looking for a program or would like to know the best way to keep up with all the houses? I have property managers in place but if I wanted to collect information to make a presentation to my partners at the end of the year what should I do?

Thanks 

Ok great! I'm actually ordering his book today!

If you had $80K to grow your real estate business, what are some ways you would use it? Would you use the BRRRR strategy? Break it down into down payments on SFH? Put it down on a portfolio investment or use it to pay off existing mortgages?

I know its hard to give this type of advice because of all the variables and everyone is in a different place/moment with their real estate careers, but I would like to know how YOU would use it at this moment in time in your life. 

That would be awesome! I will keep watch to see when the next meet up will be! 

OKC agents and investors I would really like to connect and network! I have clients that look for deals in your area. I'm currently looking for a apartment building. Anyone have any deals??

I also would like to go to a meetup and talk with like minded people! Let me know if you plan on having an event!

Thanks,

Justin Young

How did this go? I wish I seen this sooner, I would have like to come.