All Forum Posts by: Kathy Stewart

Network, network, network and when you find someone who has information and/or manages MF, stay connected with them for helping you find MF.  I connected with a man in another state when reviewing a MF, discovered he manages MF, has his own construction company for the rehab/make ready process, then decided to fly out to sit down with him for several hours of eye-to-eye on how we might create mutual value.  I did not purchase the respective MF, which I credit him in helping me assess/pass on it.  We are now working to potentially partner on a MF in 2016. I will have a property manager I now know is reliable, he can do the make-ready, and we share in the profits, or I buy it myself and know I have someone watching over it with ethics and values I can trust.

Retrieve the NOI and divide it by the cap rate for that market.

The Texas secondary markets such as Lubbock, Amarillo and Tyler should have higher cap rates.  Texas is overall a great market, thus attracts many investors.  The next few "off season" months may be a better buyer's market.

I live in California and invest in Texas.  Supreme property management is key.  Dallas, Houston, Austin are all good as well as secondary, potentially less competitive markets such as Lubbock, Amarillo, Tyler.

I live in Ca. and invest in Texas, so have made connections with other MF investors, owners of rehab/construction companies, property managers and real estate agents who identify properties that meet my criteria. Recommended books include The Millionaire Real Estate Investor by Gary Keller and How To Take An Apartment Building From Money Pit to Money Maker by Craig Haskell.

Selecting value add and under market rents will increase your CF and property value.  Why you would sell a good cash-flowing property depends on your strategy.  For example, selling and investing the profits in a larger property for greater CF is one strategy.   

Serge:

First, congratulations on your purchase! Your idea of gradually raising the utility cost is logical-also review the rest of the market which I am sure you have done. If all of the costs still leaves you below market, you may take all now or a large percentage.  I continue to see surging rent stories and while each market and situation is different, doing what the market will bear is good advice.