All Forum Posts by: Keegan MacNichol

Michael Blank also has a good multi-family syndication spreadsheet. I think its ~$150. 

Michael Blank has his "Syndicated Deal Analyzer", that's pretty good. 

Unless I'm not following, there's no way you could get a property with an NOI of 45k for that cheap. Here's How I'm seeing this, let me know if I'm missing something:

Purchase Price: $299,000

CAPEX Req: $50,000

Down Payment: $90,000 (30%) 

Closing Costs: $18,000 (est.)

Cash to close: $158,000

Gross Rent at 490/unit= $58,800

         Less 10% Vacancy: -$5,880

Effective Rent =               $52,920

     Less 50% Expenses:  -$26,420

NOI=                                  $26,460

Purchase CapRate: 26,460/299,000 = 8.8% 

That's a good cap rate! With in place rents you'll see a COC return of about 6.3%. If you can raise rents to 700 over two years, you'll see an average COC return of 15%. With the information I have, seems like a great deal at purchase price. 

There's a few ways to do it depending on a multitude of factors, including financing terms, unit condition, lease up schedule, etc. Not knowing the specifics, I'd say a good going in argument would be to renovate the 3 vacant units as well as the exterior after closing then systematically work through the remaining 9 units as the leases expire. For the remaining 9 you have a few options: 

- Renovate at lease up. If the lease up dates are staggered, you could do them 1-2 at a time as the leases expire. 

- "cash for keys" to create vacancy prior to lease up. Could allow you to free yourself from underperforming leases  early, thereby allowing an opportunity to perform necessary improvements to bring units to market rent. 

- As lease up occurs, raise rents to market and only renovate those that decide to move. Good option if you have decent tenants and the unit's below market for current condition. Allows you to defer major capex but still raise rents. 

You should probably hire a professional (lawyer or consultant of some sort) to take a look at everything and outline your options for you. 

@Gregory McKinley Thanks! I'll look into them. 

@Gregory McKinley I agree with Matt, I think receiving a call with an automated message would be off-putting. Also, if I receive an automated call I don't even listen beyond the first word or two before hanging up, so I don't see an auto-dialer producing conversions. 

Out of curiosity, where are you getting your leads? I've found that getting the owners name/address is straight forward enough, but getting phone numbers is tricky. What's your secret?

Hey all,

I'm wondering if anyone knows of a good tool that's purpose built for analyzing the current performance of an existing asset.

For instance, I purchased a duplex ~7 years ago. Since purchase I've: addressed deferred maintenance, made improvements, and increased rents, etc. Is there an excel tool that can show my current ROI, IRR, COC, etc? Most tools are for analyzing potential deals, but I've never come across one specifically for analyzing the current performance of AUM.

Obviously I can modify my go-to analysis tools, but I'm curious if there's a better way. Am I overthinking this?

CHEERS!

Hey all,

I'm wondering if anyone knows of a good tool that's purpose built for analyzing the current performance of an existing asset.

For instance, I purchased a duplex ~7 years ago. Since purchase I've: addressed deferred maintenance, made improvements, and increased rents, etc. Is there an excel tool that can show my current ROI, IRR, COC, etc? Most tools are for analyzing potential deals, but I've never come across one specifically for analyzing the current performance of AUM.

Obviously I can modify my go-to analysis tools, but I'm curious if there's a better way. Am I overthinking this?

CHEERS!

Hey all, 

I'm wondering if anyone knows of a good tool that's purpose built for analyzing the current performance of an existing asset. 

For instance, I purchased a duplex ~7 years ago. Since purchase I've: addressed deferred maintenance, made improvements, and increased rents, etc. Is there an excel tool that can show my current ROI, IRR, COC, etc? Most tools are for analyzing potential deals, but I've never come across one specifically for analyzing the current performance of AUM.

Obviously I can modify my go-to analysis tools, but I'm curious if there's a better way. Am I overthinking this? 

CHEERS!