All Forum Posts by: Milan Mehta

@Josh R. I knew I should be logging on to this site more often.  Just catching up on this post.  Congrats to you and Marcie on all of your perseverance!  In my personal opinion, that tree house is more impressive than the 6 unit deal!  Best of luck!

Starting out, I used to think in $/door... but now I think in terms of cap rate.  This helps you compare properties from one to the next.  Cashflow/door includes debt service which skews the formula in my opinion.  Also, everyone's situation is different.  I could take no cash flow if I am purchasing a property on pure speculation of appreciation.  Or, it could be a solid property in a great area that always rents and could demand a higher cash flow.

@Account Closed In my experience, once you get burned a few times as a landlord, you develop your own "deal breaker" rules that you stick with as a policy.  I'm a sucker for second chances, but you are running a business and you should stick to your requirements and not feel you need to make a special exception.  

My advice is to stay in school.  If available, take real estate development courses.  In real estate, there are many skill sets that are required and you will need a team of people surrounding you.  School is where you figure out what you are good at and more importantly, what you are not.  Getting educated and mastering one or more skill sets that you may need will give you a leg up on 90% of the investors out there who do this full time.  Also, there is no reason that you can't get started in real estate and go to school at the same time.  Why does it have to be one or the other?

Can't make it today, but hope to catch the next one!

I'll be there!

Hi @Debbie Cooper .  I'm always a believer in finding the highest and best use of the site.  Having the property zoned commerical gives you many options.  You mentioned you have a mortgage.  Do you have a lot of equity in the property?  Could you pull out some to help with building/renovation/construction costs?  Do some homework on going rates for commercial rents vs residential rents in the area.  Is there one that makes sense over the other.  Maybe a mix of both? 

Hi @Mayer M. I wonder why your developer mentioned it would be wise to convert to a condo for only 3 units... especially on a small single family as you describe. Is the goal to separately meter everyone? That can be done without being a condo. You describe an ARV of $600k.. does that mean you would sell all at once anyway? I agree with @Nik Moushon and @Colin L.  and @Jared W Smith . Not worth the hassle on this one. Attorneys fees for setting up condos, HOA etc would make it not worth it for me in addition to the added liability.

I will be there!

Hi @Henri Meli .  Thanks for setting this up.  I will be there a bit late around 7 if that's OK.