All Forum Posts by: Mike B.

Ive posted multiple threads because i have so many different variables in my investment portfolio . Currently I have multiple investment propeties , 5+ that are cash flowing . One property is due to mature in 7 months ( Dec 2020 ) This particular property ive had for 3 years and initially purchased with a 10 year note @ 3.95 % . when it matures , ill owe roughly 475,000 . My question is , since im having a hard time finding decent deals , should i pay off that mortgage when it matures and save the $6200 mortgage payment every month . That would put me at 15 % Roi . I cashflow 2k with the property already . What would you do , Pay off the loan and just profit that every month or refinance the property into a 20 year note , maybe higher rate and lower ltv ( 65% ) , pull out 240+ in equity ( it appraised at 1,100,000 last year ) and use that with current reserves and wait for another deal ? Im leaning towards pulling out equity and hoping i find a good deal but all deals im seeing are only making a 5-6 % CoC which from what people say isn't far off from what average is ( 8-10 % ) . I would rather just pay the loan off and cash flow that extra $ 6200 . Your thoughts ?

Greg Dickerson - i agree , we are at 5-8% cap depending on the  property so its not the worst but its getting worse. Ive been reading up on self storage , just need to do more reading and see if its a field i can get in , if theres oppourtunity left in our local market here . Ive heard too many awful stories about developing but i assume thats not speaking to right group of people , and Re-use of un-utilized  properties does seem to be the thing now , how would you get your feet wet there ? talk to bankers , builders , scan empty buildings ? 

Todd Dexheimer- thanks Todd , i will check them out and see what happens . what kind of lending team do rely on ? Big  banks , Credit unions , Small banks , Fanny Mae / Freddy mac ? 

Not sure if you guys invest out of state or local to where you reside ,but What charts , data , info do you tend to research or rely on before entering a market and knowing its good ? 

Also for Fanne Mae  and Freddy Mac lending , do you have a local mortgage broker who handles that or do you go online to find them ? Sorry , i could ask a million questions  

This may not be the best question , but is there software or apps or Local gov applications( besides county tax records )  that locate  parcels for owners classified as multi-family properties or something similar  , it may narrow down the search a little for the properties in the asset class id be looking for . Im sure there is Something along these lines that may help investors locate properties / owners .  

@Alina Trigub

Great point , I’ve been driving around and writing address of properties to contact but it is a time consuming job and having a stream of brokers present you good deals may be a better strategy but you do have a great point as well , and your right , patience is key . Thank you .

@Erik Hatch

I agree , I appreciate it Erik ! Just have to find deals and we should be good , just gotta take the recommendations listed above and make it happen.

@Erik Hatch

Good question Erik ! I don’t have a set time horizon , I’m a buy and hold for good unless my cpa recommends me to sell . I know with a good deal , and over 4-7 years you can refi and get most of not all your money back and do it again . That’s basically what My structure of investing would be . I don’t necessarily need to refinance , I have Retail business that yield me 300k + a year so I could theoretically buy a property every year self funded

@Todd Dexheimer

Fair points , I Appreciate the info , I’ll get back to calling and communicating with the above mentioned .

Fair points from everyone . My backbone has been retail Commercial and I've been around the 15-18 % CoC on those deals so Maybe my projections for multi-family may be a bit off but they are attainable , not 20% but I've talked to a few investors where they are getting 12 % + but i know they wont spill the beans on where they get the deals , we are in a smaller market ( 120k population ) I want to focus on Multi-family and really get educated as best as possible on it , I dont want to touch any other asset class .

Michael Dang- do you think 45 % is too low for operating expenses ? I know there is too may variables but just as an overall gauge. I have called about every broker with a multi-family listing of 4+ units

Joel Owens- Good point , I should ask what the average returns are in this asset class. But this is the class i would like to be in . Im moving away from retail commercial .

Ryan Daigle- CoC is one of my main goals , I would like to retire with a solid Passive income , not necessarily looking to be worth 1 billion .

General question for all of you , What has been the general return on your Multi-family deals ( 20+ Units ) Do you focus on Turn Key Deals or Value-add deals ? 

Hey everyone , I could use some tips and pointers on where to go . I have a good amount of resources , I'm looking for apartment complexes 20-40 units , or mobile home parks 30+ pads . I can't seem to find many off market deals , and the ones listed return average 4-5% on your money with somewhat conservative underwriting ( 45% operating expense ) what should I do , or how do I find good deals , I own 6 mixed use properties and have resources to fund myself , just can't find any good deals worth injecting 300-500k and making 12-20% CoC . Ima buy and hold kinda guy .

Hey Michael , Just tried to call you but your assistant picked up. 

either way , The asking price was 3.5 but from my agent talking to their handling broker , it will be much less , around 3 if anything . Its a turn key property so im not necessarily looking to value add as much as a typical complex i would buy . I just want to cash flow and save on taxes , if i can raise rents to 950 down the line , that would be great , but im analyzing on a 850 rent which is fair for a 1 bed 1 bath ( 680 sq ft ) 1 block away from community college in a downtown area .