All Forum Posts by: Lauren Apicella

Born and raised in Naperville :) 

Hello from a fellow Realtor and Napervillian!! 

Does anyone know of any apartment buildings coming for sale in Bonita Springs or Estero, FL?

I am looking to buy 16+ units out of state and would love to connect with commercial brokers to help find deals. Looking in North Carolina, Greenville SC area, Houston Texas, and Florida. Would love to connect with some rockstars that can offer great insight into these markets!

Thanks @John Leake! I went to ISU for 2 years so I hear ya on the student market! But recently I've heard of Bloomington-Normal's loss of jobs (300K) and flat market so just wasn't sure if it is the best place to invest 

@Diana Dorantes I am in Illinois and am considering purchasing my first investment property - I'm a little nervous to invest in IL given the high taxes/rate of exodus from the state! Was looking to invest near Bloomington-Normal around ISU.

How has your investment performed so far?

Thanks @Bob Okenwa - The 2 others on that street have a GRM that is closer to 5, and then when you go further out in the area the GRM goes up to 6-6.85.

I don't know why the other unit sold for only 310K - doing the NOI/Cap Rate put the market value closer to 400K - it is such a big difference!

When I do the NOI/Cap Rate for this unit - puts the purchase price at $500,000 - in line with his asking, but so far off from the other 8-unit.

As the market is heating up - at what point is it OK to overpay - or is it ever?

Here is a potential deal - Two 8-unit Buildings for sale - the numbers of each are pretty similar so I will do it for just 1 of the Buildings. This one has a new roof, and 3/8 units are rehabbed:

Asking Price: $495,000/each (Price/Unit - $61,875)

GOI: $79,200 (rents range from 750-850/month)

Expenses: $28,532 (he does PM himself - this includes a 5% vacancy and 8% in repairs)

NOI: $50,668

P&I: $1,881 (25% Down - 4.5%) - Annual Debt - $22,572

CAP - 10.06%

COC - 20.73%

GRM - 6.31

DCR - 2.21%

*On the same street, an 8-unit sold for only $310,000, & a 12-unit for $455,000 in 2016.. Definitely needed updates - not turnkey like this one. Rents are only $675/month (potential to raise rents though!), and the cap rate/COC/DCR are all still pretty similar to the numbers for this unit. Moving further out from this unit and the GRM's are closer to 6.

What are your thoughts? Would you do the deal? Or is his asking price way out of line? 

@Mitch Messer @Kanwar Sodhi thank you so much!

Thanks @Mitch Messer 

Increasing vacancy rate to 8% & repairs to $6000 these would be the new numbers:

Cap - 7.41%

COC - 10.68%

GRM - 6.63

What do you think of those numbers? Would you do the deal?