All Forum Posts by: Kim H.

I am looking for a good calculator/spreadsheet template for estimating costs for a 12 unit multi-family (everything from preparing the land, up). 

I have a 9 unit multi-family and there is space on the same property to add 12 new units. I am just trying to look at costs to see if it makes sense but I want to make sure I don't miss any pieces of the puzzle. 

These would be a 2 story building with stairs (6 units upstairs and 6 studios downstairs that could be converted to office/retail down the road, if it makes sense). Around 880 sq feet each. My property is on the main street of an old town area that is being revitalized. 

Just trying to wrap my head around around the potential costs before I make a decision.  

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $395,000
Cash invested: $620,000

This was a 9 unit multi-family with a combination of attached townhomes and single family homes. All needing full remodels.

What made you interested in investing in this type of deal?

Entry into small multi-family

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

I didn't finance

How did you add value to the deal?

Remodeled all 9 units

What was the outcome?

Still own and it stays occupied and is a great cash flow

Lessons learned? Challenges?

My general contractor ran off with some money after I found out he was just picking up workers on the corner every day who knew nothing about construction

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a real estate broker

I usually tell my clients that if we get 10 showings and no offers, we have an issue with either condition, location or price.  In this market, it's more like 3-4 showings with no offer and we have a problem.   

If the condition and location are good, price is the only other factor. Location tends to be the one that even the biggest price drops have a hard time overcoming. Does it back or front a busy street, is there something unsightly nearby like a water tower or power lines, is the neighbors dog barking constantly?  Usually when a house in a neighborhood sits and all the others sell, it's location.  Since you said it is the third nicest, I'm assuming there's not a condition problem. 

And, I wouldn't offer the bonus.  Personally I don't ever care if a house has a bonus or not.  It all depends on what my client is really looking for.  Ethically, I couldn't convince them to buy a house over another one just because it offered me a bonus.  You are better to have the seller spend that bonus money making updates or paying seller closing costs.

Good luck! 

Hello Everyone! I'm not new here, just haven't been on in several years. I was a newbie investor when I first got on a few years ago and got involved in my first multi-family investment opportunity and a few rental homes. It's been a great two years and now I am looking to expand my portfolio and my knowledge.

Glad to see that BiggerPockets is still a thriving online community.