All Forum Posts by: Megan T.

@Patrick O'Shea smallest deal I have ever done is $16M, largest was $175M

REITS minimum (very dependent on the REIT) is about $30-$50M

I have worked as an acquisitions analyst for the last four years at a large REIT and then a private equity multi-family shop

I have acquired over 1 billion (with a B) in real estate spread across 22 deals in 5 states 

I see a lot of questions on here about underwriting or deal analysis especially for multifamily. I have underwritten thousands of deals, so ask me anything

You should not be relying on your realtor for real estate tax estimates. While the 2018 taxes on this property were $1,679, if you use the county assessors estimate they will increase to $2,391-$2,756 next year based on your purchase price. 

This is the link to the county assessors website, on the top to the left of the picture they have an estimator tool where you can put in your purchase price for the property and it will estimate your taxes next year
https://www.ocpafl.org/Searches/ParcelSearch.aspx/PID/312215286600301

There is a search tool at the top left for properties going forward

Homestead exemption is a discount on your real estate taxes if you live in the property. They set this up to offer discounts to Florida residents instead of snow birds. You should definitely be watching out for this when buying rental properties because the real estate taxes for the property can double or triple the year after you buy it

More information on the exemption: 
https://www.pbcgov.org/papa/homestead-exemption.htm

This property sold two days ago. I would check with your realtor for live deals

In terms of underwriting going forward: 

For property taxes, I would make sure the property is not currently homesteaded. $1,680 annually for taxes seems light

You should definitely charge tenants back for electricity as well as water/sewer. If you are setting this up as a student housing deal, you might be able to keep it in your name and just bill back your tenants a flat fee. If all utilities combine for $180, charge tenants $200 for the convenience of paying one bill and it always being the same rate. 

I also don't see any HOA fees, since this is a townhome you would likely have those

You would need to have an ownership interest in the property or your brokers license. Might be worth taking the brokerage test if you have had your sales associate license for two years

On my most recent acquisition, I listed the property on zillow, craigslist, etc. while under contract. When tenants reached out about the property, I simply stated it would be tenant occupied until the closing date and would be available for showings after that. Toured an applicant the day we closed and then moved them in a week later

I am reading the 2017 version now, and it is the same as the original. They just have little inserts with a hindsight look at the last 20 years with the advice given in the book. For example, one of the biggest chapters is about how your primary residence is not an investment, and they then link this advice to the 2008 mortgage crisis (which nobody could have predicted in 1997, but if you had followed the advice given you would be protected from)

Make sure you are underwriting taxes correctly. Throughout most of Texas your taxes will be reassessed after the sale up to the purchase price. You can confirm this by checking other sales comps from the last two or so years vs their current assessment. I know Texas is a non-disclosure state, so you might have some difficulty finding the sale prices, but your agent should be able to help you

I invest in both single family deals in South Florida and syndicated multifamily deals across the country. It really comes down to the amount of time you want to spend on the deals and the amount of control you want to have (assuming returns are comparable).

Syndicated deals are great because the checks just roll in every month. Eviction at the property, somebody else's problem. Hurricane rolling through town, somebody else's problem. Month after month, the checks roll in. But syndicated deals offer you little in terms of control. Think it is the right time to sell the deal, not your decision. Think you should refinance at a lower rate, not your decision. This is why it is important to properly vet your syndicator to make sure they have a similar investment strategy as you.

Like I said, I personally do both as a way to diversify my portfolio. Definitely pros and cons of each, just depends on your investment goals