All Forum Posts by: Luke Miller

Thanks for all the great replies! BP family is great! 

Yes I kinda had a feeling this deal would not work if the owner is not willing to come down in asking price. I still want to play around with the numbers tonight and tomorrow for practice and to continue learning as I go.

 I have been walking several times a week and compiling a list of run down homes in very nice neighborhoods and will continue to compile and make contact with the owners, and hope to find a better deal soon.

@Devon Baldwin Thanks for the advice! I'm super new to this also, I appreciate your help!

@David Shihadeh Thanks for the offer! I will definitely take you up on it!

@Jesse T. It is two separate four unit buildings, owner is asking 1 million each. Owner bought both properties in 1979 (also age of building) I only can find purchase price on one complex, they paid $405K for it. I am actually interested in living in one of the units, thanks for the FHA loan idea. So if I'm understanding you, the deferred tax would defer to the buyer correct?

Your absolutely right repair costs would be higher, I was kinda sleepy last night and rushing a bit. One good thing is it seems the only major repair they made was to install a tiled roof!

@Logan Hassinger I'm also not convinced that this is truly a section 8 complex, due to the bad condition, broken window fixed with cardboard etc. I thought section 8 had to meet certain qualifications? Who knows, it is fishy though.

I will keep my head up and keep working on this if only just for the practice, and also start to follow up on my neighborhood findings.

Thanks again for the swift advice!

Here's a 8 plex I've been looking at in San Jose,

Owner is asking 2 Million and has rejected 3 offers 1.7 mil, and 1.8 mil.

The property is located right off of the 87 in S. San Jose. It is close to a large new apt or condo complex. It is in rough shape. All section 8. very run down and minimum maintenance.

I have not seen the inside of the units as the realtor informed me that all offers are subject to inspections, which I believe means I wont be able to inspect until I've made an offer?

I estimate the minimum repairs to be $50k. But could be higher.

My plan would be to remodel one unit at a time. I could do a lot of the work and hire inexpensive help.

I would need to fund the entire amount. I'm not sure how that will work but I will be contacting some hard money and private lenders tomorrow to find out and learn!

Attached is a screenshot of the rental properties calculator formula.

I would love to know any and every mistake I've made working this up. 

When using private or a hard money lender with the plan to refinance asap, how do you figure loan interest rate? The initial rate or the estimated refi rate?

Also I did not know what percentage to put in the typical cap rate for this area, any help with that would be appreciated.

I believe once remodeled this complex could demand about 15% rent increase.

Thanks for taking the time and for any advice you can give!

Hi,

So my wife and I have worked really hard this last year to start a PM company located in San Jose CA. We are currently both employed as on site managers (Mobile Home Community) Our PM company currently manages a small apartment complex (24 units) as well as two commercial properties.

The thing is we are beginning to realize the need to quit our job and focus solely on our business in order for it to grow and flourish. We are both very capable people and are eager to see our dreams become a reality, but admittedly we are a little overwhelmed juggling both our jobs and our new business.

We would be happy to discuss taking on a partner who could make an investment in the company so we could adjust our schedule to focus on growing the business. 

Any and all ideas/offers are welcomed!

I really believe this could be a mutually beneficial opportunity.

Thanks for taking the time to read!

Thank you for the great advice! @Edward Synicky 

@Johnson H. Sorry I wont be able to make the next meetup, but looking forward to next month!

@Jonathan Wilks Thank you so much for that detailed info. It was just what I was hoping for. 

Hi, I'm hoping to get some feedback on our current situation.

We are working on signing a management contract with an apartment owner, who would like us to be the employer of the on site managers. We feel slightly unprepared for this as we were setting our business up to manage single family homes. But we also would like to go forward with the deal as it will be a great boost to our brand new company.

Hoping someone here has experience in this area and could give us some advice on either the process for having employees, or what to say to the property owner that could convince him to employ the on site managers himself. Either way, we would be acting in his behalf to locate and hire the managers.

Thanks in advance for any advice!

Thank you for the welcome! @James Wise @Andrew Fingado 

If you are searching for a Property Management Company who truly cares and will treat your property the way you would, please give Miller Property Management a call today, we would love to speak with you!

What a great idea to do a current home inspection as part of the screening process! We currently do walk through inspections twice a year but I can see how this would be a great implement to our screening process. I will have to look into the legality of it here in CA. 

Finally! I've read many Bigger Pockets posts and benefited from various articles over the last several years and finally got around to joining. My wife and I have been working together in the Property Management Field and really enjoy it. We are excited to be starting our own PM company this year! As well as have hopes and dreams to invest in real estate in the coming years. We are really looking forward to learning from and being a part of this great community!