All Forum Posts by: Oladimeji Sonibare

Hey, All.

I'm looking to purchase a mid-sized multifamily property with a partner. He's providing the bulk of the funding; I'm analyzing the deal. Where I'm stuck is figuring out how to add value. I understand that MF's are priced according to their NOI. What are some creative ways to increase cash flow/reduce expenses, in your experience?

Sb: These properties already come with washer/dryer sets and if you know of a way to find MF deals for LESS instead, you’re also welcome to respond.


Thanks a lot!

 While I agree that the landlord could potentially be on the hook for these things, I also feel like these issues can easily be addressed within the terms of our agreement. Ex: “No parties/loud music”

@Michael Porche

Hey, Michael. Thanks for the reply. I’m leaning more towards arbitrage for a few reasons:

1. Less money up front. All it takes is one month’s rent and security, as opposed to a down payment.
2. My potential exit is a lot simpler/less messy. Assuming my LL was open to signing leases for as short as 6 months, I can use this model to work the peak seasons, exclusively. Once is over, my lease is up and I sign another one the following year. Compare that with having to worry about a mortgage year-round.

@Bryant Xavier

Wow. I hadn’t even considered travel nurses; that makes perfect sense. I’ll look into it tonight. Thanks a ton, man. Beast of luck to you too.

The rent increase was smart and pretty bold (in a good way, of course), but it would have only worked if you had acquired the property with rents well below market, no? Otherwise, you’d have simply ended up with vacancies. Without repairs, something in the market must have justified the increase.

The insurance thing was amazing. Hats off to you, Sir. 

 @Paul Mac

Nope. You’re actually spot-on. I discussed it with a lawyer yesterday and you’re only confirming what he told me. Thanks. I’m not exactly sure how to find a group willing to stay for 30+ days. I guess visiting executives? If I can find the kind of property to market to them, perhaps that could work. What do you think?

Thanks, @Conner Olsen.

I live in NYC and intended on starting here, but they've virtually outlawed it. It's only legal if you're on-property during the rental period and the renter needs to have access to the entire space. Meaning you can't lock yourself in a room and rent out the rest. It's wild, actually.

What I'm considering now is starting in NJ or another one of the neighboring states/cities. I'll keep looking. Thanks for the heads' up.

Thanks, Paul. I’m familiar with arbitrage, I was just worried the rules would be different somehow when it came to short-term rentals as opposed to longterm tenants. @Paul Mac