All Forum Posts by: Kirk Koskiniemi

@Gary Volmar It would be good if you posted your location and/or reached out to realtors in your area. Every situation is going to be different: do you want to sell quick, do you want top dollar, is it a cash only deal, etc. Find a good realtor who has experience with multifamily and determining a fair investment price for the property. If you are trying to go it without a realtor, the best way would be to read up on this website about valuing real estate deals and look at other deals in your area. If you are anywhere near Western Washington just send me the address (don't tell anyone else) and I'll take it off your hands ;-)

It could be any of the above, depending on how you structure the deal. Ideally it cashflows enough as it seasons to pay interest to HML.

Depending on how the laws work in NY, I would just factor in the cost of eviction and vacancy, and work the numbers. If it makes sense, do it. Unless, of course, you don't want to evict the tenant or deal with it.  I would HIGHLY recommend a lawyer, I tried doing it once myself and it sucked- and you could be the one with legal issues if you misstep.

That's a great idea, thanks!

As a contractor, I am very familiar with what maintenance costs. Unless this is a home in immaculate condition, there is going to be work to be done. Painting, roofing, siding, water heaters, plumbing, tenants trashing.... Maybe not this year or next, but when you have tight cashflow, and you have to spend $5k on something (which isn't a large amount), it can eat your profits for several years. 

I am rehabbing a nasty 5 plex I bought last fall (pics at bottom). Besides redoing the entire inside, I plan to paint outside, install new cedar/cable railing, redo roof with metal, replace doors and windows, paint, and remove and replace landscaping without big trees. (I know, it's a lot). Question- what is the best thing to do with a Mansard roof design like this TO MAKE IT LESS 1970s? Should I paint each unit seperate colors? Try to dress up the windows and doors with some better trim? I have a sketchup drawing below of the direction I'm heading (disregard the colors, I'm not great with the color selection of sketchup). What do you guys think? Am I on the right track with the general sketchup design, or does it look horrible? Again, disregard the colors. If you want to add color advice, I'm down with that. Thinking of a charcoal gray metal roof.

Pic of 5 plex

Investment Info:

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

Purchase price: $255,000
Cash invested: $100,000

Bought a distressed 5plex. Going to rehab basically down to the studs.

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

Realtor. Negotiated with cash down and owner finance. Pushed the benefits of fixing it up and improving the neighborhood, and the seller really liked that idea.

How did you finance this deal?

100k down, owner finance on 7 year note.

How did you add value to the deal?

In the process of spending approx 60k on complete rehab (doing most of the work with my partner and myself).

@Derek Dodd I will be out of town this week.

Thank You Sir. I actually am using them now and Fred has been great!