All Forum Posts by: Magesh R.

Interesting. I was looking for the same thing. Thank you for the post @Timothy Myshrall 

I Will also be watching this thread for others to chime in.

Louis,

Did you end up doing this? I am considering the same thing (10-30 units in a targeted area). Could get some tips from you.

regards

Originally posted by @Brie Schmidt:

@Obdia Whitmore - I agree with @Shawn Mcenteer you don't need to pay for a mentor - everyone here is more than willing to help.  What are you stuck on?

I know the biggest hurdle for me with buying my second was having enough money for the down payment.  Finding the deal was not that hard, it was finding how to pay for it.  

We also have a meetup group that meets on the third Tuesday of the month (just had it the other day) where you can talk with about 50 investors active all around Chicago.  You can PM me your email and I can add you to the list if you want.  

 Brie,

How do you find the deals? It seems like I need some help in that area.

Welcome to the site Harpreet.

I am relatively new to this site but have been investing for about 3 years now. I started with SFRs and slowly find myself migrating towards MF houses and would like to continue in that path.

Are you focusing in and around NJ or considering remote/out of state?

thanks @Colleen F. 

@Nancy L. Thanks. I like the contingency idea and that's why I was comfortable going with the rule of thumb offer so I can back out if something is not right after seeing their data

@Account Closed  You are right but I need a starting point to get more information regarding the property. With contingency I can back out if I don't see the value

Originally posted by @Ugochukwu Opara:

 Hey buddy.

.....

3. Wow that's really high for property management. Over here in Philly, 10% of filled monthly rent is the fee plus 1 months rent finders fee. I would negotiate that down hard. 

.....

 To be clear, my prop mgmt company is charging me 12% of filled monthly rent and 1 month rent finders fee. So I see it is just 2% more unless you say that snow and lawn is part of the 10% in philly. That's what I am not clear about. I always thought it was a separate item and part of repair and maintenance category.

Thank you for the responses Ugochukwu.

1. I have asked him that question already. Waiting for the response.

3. Does lawn maintenance and snow removal come under proper mgmt or under another category?

They do have the operating data but I don't have access to it yet. In the absence of that, I am thinking of giving an offer based on 50% rule. What do you guys think?

NOI=GI/2

Value = NOI/cap rate

I am looking at a potential 10-unit MF deal in Columbus, OH. Now, I have read about NOI, CAP rate etc and evaluating the purchase price based on cap-rate. But as I sat down with a spread sheet to plug the numbers in, I came up with these questions. Can experienced investors here throw some light on this?

PS: I don't yet have access to the previous years' operating data from the seller. It looks like I can only get access to that after I make an offer. But, I need that to come up with an offer price. Catch-22.

1. How do I determine the cap rate of that particular area? 

- I have tried to look in loopnet to look for similar properties but there aren't any like this. 

2. To my understanding, there have been no vacancies recently or in the last year(100% occupied) but Should I still factor 5% or so?

3. The property management company that I work with has come up with 12% + $3000 as their Fees to take care of the lawn, snow, collect rent etc. 

Not included in that are items like 

- Finding new leases when a unit becomes vacant

- Repairs and maintenance etc

4. Should I factor in Repairs and maintenance? If so , how much? Again, Since I don't have access to the operating data, I am thinking about 10% as the number. Is it too high or too low?

My agent has come up with 38k NOI. When I factor all the above factors, I am showing 29k NOI. What should I go with? Obviously the valuation is going to be very different based on which number I use.

Thanks in advance for all the help.

Cheryl P. I'm from LI area and have been investing in ohio for a while. Infact I'm in Cleveland and Columbus this week scouting for some potential buys. Let us chat if interested so I can share my experience There seems to be other people from nyc area with similar interests as well and I would like to connect with them all. Pls feel free to reach out.