All Forum Posts by: Michael Burke

Has anyone on this platform tried out SpaceQuant (https://www.spacequant.com)? We're looking at it for the Rent Roll & T12 parser only (we have our own internal model that we will continue to use and will load the clean data on an input tab). It seems pretty great based on the demos I have seen; however, our chart of accounts hasn't been loaded and I think that's where we may start to see issues. Curious if anyone else has used them and what their experience has been. Thanks!

Thanks for your feedback Shawn. The property I'm looking at is an apartment building. I followed up with the assessor this morning and he said they would put the most weight on the sales approach. They will typically look at a group of sales for similar type/area for the past 3 years. Unfortunately it looks like tax reassessment is going to kill this deal since the estimated sale price is much higher than the value the assessor has on the books.

Hi - I'm evaluating a property for purchase in the City of Champaign, IL (Champaign County). The county falls within District 4 and so there's a reassessment scheduled for 2019. I previously spoke with the assessor who said they would utilize the sales approach in conjunction with a program called Marshall & Swift (cost approach) for commercial valuation. I'm curious if anyone on here has experience with tax reassessment in Illinois, specifically Champaign County. There should be a pretty significant difference in reassessed taxes if they're using a sales vs. cost approach, and it would be great if anyone can provide some insight.

Thanks!

Michael

Thank you Shane! I was able to find some good information on the regulations. I see that you own an assisted living facility in Kansas. Just curious, about how much do you pay per unit for property and liability insurance? The historical financials for the property I'm looking at show an average annual expense of $1,250/unit. I know you're in a very different market, but I was just wondering in general how the insurance expense compares to your traditional multi family insurance expense.

Ronald - The other 75% is independent living. The property is located in Florida. Modeling in-place management fee of 4%.

Hi - I'm evaluating a 200+ unit senior living facility that has an assisted living component covering 25% of the units. On standard market rate properties I typically figure that you need 1 full-time manager, and 1 maintenance person for every 100 units. Could anyone tell me how much staffing they typically figure for assisted living properties? This is the first assisted living facility I have evaluated, and I'm trying to get a better sense of the standard operating expenses for this type of property. Also if anyone is familiar with any resources online that I should look into, please let me know.

Thanks!

Michael

Thanks @Joseph Cornwell I will definitely do that. Are you familiar with any REI friendly lenders in the area. Union Savings mentioned that it would be 2 years to count rental income when they reassess my debt-to-income ratio. I know this is pretty standard for the industry, but it sounds like there are exceptions. Not important for my first investment property, just thinking down the road...

@Joseph Cornwell I'm using Union Savings Bank.

I recently contacted a bank about getting pre-approved for a loan on a 2-4 family property, and these are the rates I was quoted:

- Fixed would require 25% down; ARM would require 20% down

- 30yr fixed is currently at 4.25% but would require points of 3.125% (could buy down points by going with a slightly higher rate)

Do these rate look competitive for the area? Or should I shop around?

Here's the situation: I'm looking at investing in a multi-family property with a friend of mine. My friend quit his job a few months ago to change careers, and is starting a new role in January. He's been out of work for about 5 months now. I'm currently in the process of getting pre-approved for a loan and shouldn't have any issues. The question is, since my friend has had a lapse in income, is there any way we can go in on a loan together? Please advise.