All Forum Posts by: Mark OGara

@Seth Myers

Hi Seth

Here are some questions I was just asking an owner who had listed a multi unit:

Can you breakout the expenses that you pay on an annual basis :

Insurance - carrier and value of building
Utilities - electric, water and sewer, gas
Maintenance for the last year
Lawn/snow removal

For each unit, can you give me a breakdown by unit - bedrooms and sq ft and lease for each tenant - rent and month/year on current lease.

Occupancy rate for the last year?

My first step in evaluating a multi unit is to try and understand the revenue and expenses.  The question on the units size helps me to determine how much they are charging for a given unit and then I can compare to the Pittsburgh market.  For example, if they are charging $300/month for a 1 bedroom chances are I do not want to own the building or be in that market.

@Oscar Lopez

Hi Oscar

Send me the details on the properties please.  I am starting to look into the NC market .

Thanks

Mark

We have a buy, renovate and hold strategy for our multiunits.  Where we can, we install a stackable washer/dryer in the unit and moved the old machines out of the basement.  The tenants love have a stackable in the unit and we get to charge a higher rent.

@Aaron Sullivan

How or why did you get involved in real estate investing?  Great questions.

1.  How:  Read the book MultiFamily Million by Lindahl, researched Pittsburgh markets and bought two multiunits to get started.  Our thought process is the best way to learn the business is to do it - build a team and go execute.

2.  Why:  We had most of our assets in the stock market and wanted to diversify.

3.  Advice for a beginner:  learn as much as you can and then go do it.  Real estate is a long term business and you are at a great point in your career to start.  

Have a great day

Mark

@Crystal Smith  Yes Ma'am, they are associated with B2R.

@Darryl Dahlen  Thanks for the note Darrly.  Do you have any thoughts on the origination expenses of Dwell?  

Rob,  I would make my go/no go decision on the financials as you know them, current leases, and the condition of the building.  One strategy that has worked very well for us in the Pittsburgh market is to buy a multi unit that needs work and as the tenants move out, rehab the units.  Over time your tenant base will improve with better rents and the maintenance of the building will decline.

Does anyone have any experience with Dwell Financing?  VC backed lender and from what I understand their rates are a bit higher than commercial banks and the expenses seem higher.  That said, they do asset-based financing which seems like a good alternative.

@Devin Woods

We manage all of our properties so we have tried to keep all of our investments in a central area.  Do you use a property manager?

@Gary Swank

Thanks for the note Gary.  We have been working with a real estate agent for a number of years now.  Feel free to send us a note on properties in our primary area of interest - Avalon and Bellevue.

Cheers

Mark