All Forum Posts by: Tyler Blackwell

We've seen this in a few of our remodels. I like to just frame in a smaller window that's higher. Here's a pic of an example finished product. Originally this window extended down far enough to collect water and even if it's well-maintained it's just a problem waiting to happen: rot, mold, etc. The new window can be opened for ventilation/air-flow, but there is a fan in this bathroom as well. 

Potential sellers might just view the neighbor as a dweeb, but then again they might realize they don't want to live next to that dweeb, even if they're confident in the home's condition! But I'd worry more about the thin margins. In my area recently I've seen wholesalers make more profit than the flipper they sell it to. Who takes on more risk? Wholesaling is a different game in this market because inventory is scarce. If you've done a bunch of deals and are familiar with potential pitfalls and comfortable with the risk, then I'd say go for it, otherwise avoid. 

I also have used Michael Blanks SDA--it's very comprehensive and very helpful in coming to understand what's important and what's not in a deal. You can easily play with different scenario parameters to dial things in. Yes, it's a paid excel program, but it's not expensive, and it also comes with some good education content and videos. If you can't find a free one, his program is a good option. 

Hey @Chris Dickey, I can echo what others have mentioned...it depends! Where I'm at it's pretty standard for the landlord to cover water/sewer/garbage, while the tenants are responsible for energy (electricity/gas/fuel) and other discretionary utilities like cable/internet. Hope this helps. 

Hey @Jonathan Twombly (and others), how does that compare to a smaller commercial multifamily, say 25-50 units? I pay 8% for my residential multifamily, but it sounds like the fees are lower for larger buildings?

Great information, Tyler. Obviously the long-term market implications suggest multi-family will be a good buy-and-hold asset in the years to come. I also appreciate the moderating advice from @Jonathan Twombly and @Charles Worth, reminding us that regardless of outlook, we must always buy right and consider leaner times. At the moment our vacancy rates  are at an all-time low, rents at an all-time high, which means at some point they will decline relative to other measures. So, overall, BUY, but buy right and perform strict due diligence, and have reserves at hand. Thanks for all the great comments on the thread!

I think in order to get a good idea of the numbers it might be good to ask about operation costs—repairs, utilities (who pays for what?), management, lawn care, etc. What are the units rented for and what is the potential market rent. What capital expenses are going to be needed in the next few years (roof, exterior paint, furnace, water heater, electrical, plumbing, etc.) A good inspection should reveal a lot of this, but if you can get that information before you go under contract that might be nice. In Washington the sellers are required to disclose any known issues once you're under contract, not sure if that's the case for other states.

I remember seeing that one on the MLS—GREAT buy, Curtis!

Dang, it seems like I'm always out of town for the meetings. Thanks for posting--I'll keep an eye out for the April meeting. 

@Curt Smith There's no doubt in my mind that things could change in the near future with interest rates and other market events, and I'm appreciative of your feedback. And I agree that 1.25 is a pretty thin DSCR. This property I'm looking at specs at around 1.3 DSCR at 80%LTV for the current NOI, but is value add and just bringing rents to market with little or no investment will change that DSCR to close to 2.0, which is why I'm interested in pursuing it.