All Forum Posts by: Lamar Washington

@Scott Mac Our initial plan was to build 40 apartment units. But I had a meeting with the head of Jacksonville's Planning & Zoning Departments prior to submitting a rezoning application this morning. They informed me that their plan as a city is to keep this area a low to medium Density area to minimize the impact to the surrounding residents. They advised me to reduce the number of units from 40 to around 20-30 units. They also advised me that our rezoning application has a greater chance of getting approved by the city council if we propose to build townhouses instead of apartments. This would increase our sqft per unit which consequently results in an increase in construction costs per unit.

Hello BP Community, I'm under contract on a 2 acre lot of residential land on the West side of Jacksonville, FL. 

We are currently in the early stages of the land entitlement process, and I would love to get some feedback before we commit our capital to entitling the land and getting it re-zoned.

The contract has the following terms: 90 day due diligence period, 6 month close, and the Escrow amount of 10% of the purchase price goes hard after the 90 day due diligence period. I've run the numbers on the 2 acre lot as a ground up Development project for a 40 Multi-Family Apartment Complex spread across 5 buildings, all 2Bd/1Ba units. 

I'm willing to share the ballpark numbers that I used for both the pro-forma and Construction costs with anyone who is interested in taking a look.

Also, I have a couple of questions:

1.) Does anyone have any experience with multi-family New Construction or know any Developers who have completed similar projects in the past?

2.) What is the best way to find and get in contact with local Multi-Family Developers in the area?

@Claudia Ho, @Darnell Lockett

The property did not pass our inspection. We attempted to renegotiate our price and terms with the seller once we received our renovation estimate from our sub contractors, and we could not reach an agreement with this seller .

To all Developers/Home Builders and any other interested value add Investors, I'm wondering how much is it currently costing you to build per sqft in your market? 

I'm getting ready to start the entitlement process on a 2.5 ace lot of raw land in the central Florida Area. The plan is to  subdivide the lot into 10 quarter acre single family lots. I'm unsure what would be the best exit strategy after the lot is fully entitled...

A. wholesale the 10 single family lots to a Builder

or

B. Build 10 New Single Family Homes and sell them for profit

I would love to hear your thoughts and what you would do with this opportunity. Any and all input is greatly appreciated! 

@Mitchlyn D.

1. To make a long story short, no. But the owner is willing to hold a note on the property until we can get it stabilized, we would then refi into Traditional finincing where the rates would be higher than the 5% I used in my analysis.

2.Yes, I made an offer based off of potential rents, initially the owner was asking for north of 3 million for this property. But since you are asking the question sounds like I made a rookie mistake, thanks for pointing that out I now know not to do that going forward regardless of the asking price.

3. Based on the T12 and pro forma, the current rents are lower than the rents that I used in this analysis.

4.Based on my market research I believe that we can get those rents.

Thanks for your input, I would love to connect and hear what other questions you have and see if we can be of value to each other going forward!

@Minna Reid Yes, these are the projected rents. The unit mix consists of both 2 and 1 bedroom units. Also, the property is located in the 32211 zip code. I would be interested to get your overall opinion of this area and how your numbers would compare to mine in terms of projected rents for this area and this property. Any additional input from you would be much appreciated as this is my first multifamily deal in Jacksonville. 

@Bob Stevens 

Thanks for the advice!

And yes, I put an offer in without walking the property. I did this with the intention to lock up the property and attempt to renegotiate the purchase price and terms of the offer depending on where our rehab budget comes in at. Also, it sounds like you have an abundance of experience in the multifamily space and a superior understanding of the acquisition process. I'd love to hear more about some of your previous deals!

Thanks again for your input!

@Greg Scott Thanks for your input. I have a more detailed underwriting completed in "GoogleSheets" that I would be willing to share and go over with you more extensively whenever you get a chance. I know using the BP calculator is a vague representation of the numbers for this property, but I wanted to have some basic Investment criteria for others to reference.  

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I Just went under contract with this seller yesterday afternoon on this off market property in Jacksonville, FL. I'm currently out of the area and in the process of getting a team to attend the inspection appointment with the seller to verify our renovation budget. This deal was analyzed with the potential rents that we can attract after the property is stabilized not the current T12 rents provided by the seller. This is going to be my first multifamily apartment acquisition and the numbers have the potential to look significantly better with cheaper financing and an accurate renovation budget estimate. Any and all feedback is welcome, and I would love to hear how these number compare to others investment criteria. I say this because I'm okay with the lower Cash on cash return (x<10%) as long as I can cashfow at least $100/unit at this stage in my life & Investment career. Obviously my criteria will change as I get older but I would to hear what other think. Thanks in advance.

@Blake Rodgers Thanks for the advice. I will apply the extra expenses to my numbers when calculating the NOI and running comps.