All Forum Posts by: Michael K Gallagher

@John McKee, I have no direct experience with this scenario, but here are some thoughts:

First, drive thru's are limited to banks (and even these seem to be disappearing) and restaurants.  Is this realistically a restaurant location?  Is building over the drive through limiting your ability to punch a hole in a wall, re-stripe the traffic pattern and, and put in a restaurant drive thru, when/if the time comes?

Personally, I don't see a bank drive thru as valuable.  Most banks are retracting their physical footprints, and when they are opening new locations, there is a drive through ATM, but not 2-3 lanes of drive thru teller access.

Broadly, I think the finished, leasable sq ft is more valuable.  The challenge is going to be striking a deal with the tenant.  Yes, they are paying for the new finished sq ft.  But you are also foregoing the ability to finish that yourself and find a paying tenant for the space. One option is to "charge them" rent for the new sq ft at market rates.  Then, provide a rent abatement for X yrs to offset their costs.  

I.e. they expand the building by 2,000 sq ft.  Market rent is $15/sf/yr.  It costs them $200,000 to build the addition.  You could straight line it and give them 6.5 yr rent abatement on a 10 yr extension. 

Or, you could create a ground lease on the addition parcel and say the rent for that ground lease is $2,000/mo.  But this could be overly complex when it comes to prorations for NNNs, since part of property is on GLA and other is on ground lease without being separately parceled.

I’m looking to buy my first rental property and would love to buy a single family home and rent it out by the room. Just looking for advice on how to find the legality of it in my nearby cities. I’ve tried to look up municipal codes online in regards to rent by the room and limits on unrelated people living in the same home and have had no luck. I reached out to local zoning departments and one told me it would have to be re classified as a boarding home and or a multi family dwelling. Another told me their city does not allow rent by the room. Any advice is appreciated!

Hello everyone, 

I work remote which gives me the flexibility to relocate to anywhere in the US. I had desisted of the idea of house hacking due to the fact that most small multifamily properties are  the most desirable areas(based on my experience).

I wouldn't mind not being in a class A area if I was single, but once you have a family it's different. 

I'm just curious: Does anyone here know cities where you can find small multifamily (2,3,4 units) in nice neighborhoods?

Thanks!

Hi. I am new to the BP forums, and am looking for ways to invest in real estate. I came across something that I’m hoping someone could explain for me. I have seen multiple properties with low asking prices and sufficient rental income to cover the note. These properties are not in desirable areas but still seem to cash flow. Why are investors not buying these up? What am I missing? 

I'm looking to sell a mixed use building, with commercial and residential units, in San Mateo. I'll most likely be working with an agent who specializes in mixed use properties and works for a national firm. What would be a reasonable commission rate?

Also, I'll most likely be using the same firm to buy a replacement property out of state. Can this be a factor to use to negotiate the rate down? 

Hello,

I am new to bigger pockets but have been set on owning a duplex for some time now. My best friend from growing up and I are back home (Boston area) from college and want to save up to buy a duplex together and rent out the other side. The plan would be to live in it for a year together then move out and have both sides rented.

We would ideally look to be buying in about a year to 18 months from now, hopefully when rates come down. It's looking like prices are going to be around $1m. Any help/advice on what kind of financing to go for (FHA/conventional/first time home buyer benefits) and any insight on how best to do this with a partner would be greatly appreciated.


Thank you!

-Owen