All Forum Posts by: Michael Newman

Looking for a recommendation for a real estate agent who specializes in apartment buildings in the Norfolk Virginia beach area of Virginia.

Thanks. 

Thanks for all the great replies. Thinking now about economies of scale arguing in favor of a larger deal, and working with a partner with a bit more experience. Don't think I will have financing for a first deal large enough for a 50-100 unit, but perhaps 25 to start. 

Definitely have a lot of due diligence to do and will run some numbers.  

Again, thanks to all. 

@jeff 

@Jeff Kehl Thanks. Appreciate the comment on rate of return. Truly key. 

@Chris Tracy thanks for verbiage on how to reapproach the broker. The whole thing seems a bit off to me. Like haggling over an Afghan rug. 

One of the reasons I gravitated toward a larger multi was to consolidate issues that arise into one place with one manager. Guess I am assuming that one 10 unit building would have fewer issues than three quads since you have fewer moving parts--one roof vice three, one plumbing system vice three etc...

I'll likely be using a management company sine I don't expect to be local to the properties. 

Hi

Exploring apartment investments as my first venture into real estate, other than having owned two single family residences which I then rented out, one of which had a separate basement apartment that I rented out and managed.  Am I nuts to try to get into an apartment bldg at this point--thinking 8-10 units--or should I start smaller with quadplexes? Looking for advice, experiences.  Once my home sells I'll have roughly $135,000 to invest and want to use it wisely and get the best rate of return using leverage, which I thought an apt building would be a good fit. 

Separately, in my research I requested and received an offering memorandum on a prospective property so that I could run my financial analysis.  When it arrived it did not include an asking price, is that normal?  i feel like they should start with one up front.  

Thanks

Michael

hey Steve,

 I used a property manager while I was overseas as well and I found it to be a great benefit. With the time difference depending on where you are deployed and how much time you can devote to seeking out potential repair man or contractors and dealing with the hassle of non-payments etc. it really would be your choice. For my particular situation paying a management firm 8% of the gross  rent was worth not being hassled over the management of the property and knowing that someone was visiting the house taking care of issues and ensuring the renters met their obligations.  I think it may come down to how much time can you spend on it, not doing your other obligations while deployed. If you have a decent amount of time to handle things that go wrong definitely do it yourself but if you're not sure that you'll have enough time it might be worth the peace of mind. But again up to you, my situation I just felt better having a professional manage it from the area. 

Michael

Incidentally, do you know of a good broker who works well with investors in the VA beach area. I'm looking at a potentially investing there over the next year but I would need some help to better understand what areas to look at as well as market trends, average rental rates vacancy rates etc. Good luck and thanks.