All Forum Posts by: Jason James

@April W. Perfect. I will look check these out. Thanks

@April W.  Thanks for the info. I have been doing a little research and you are correct there are a ton of foreclosures. I see the unemployment rate is high as well. Not sure if the market is still bad or turning there. Hopefully someone doing business in the area can chime in.

As for myself I am looking at the area around the Red Hawk Resort for my personal residence. That is about 20 min from the area of Sparks I would be doing other business in. Area looks good and reviews online are good but still tough to tell. 

Again thanks for the info... 

Not really sure where to post this one... 

I may have an opportunity to go out to Sparks NV (near Reno)  for other business. If all goes well I may stay there for a while. My question is for anyone in the area. 

What is your general opinion of the area? 

Where are the best places to live?

How is the market pertaining to real estate investments? 

Have you been finding good deals there or is that area still tight with high unemployment? 

Any info would be great! 

Thanks 

@Joel Owens  Very good points. I am going to do a little more due diligence and look into some of the items you mentioned. Also I agree that this place must POP! That’s the only way to get good tenants quickly. I must provide a quality product at a fair price.

@Glen S.  I am not sure I can take that approach. I feel that replacement cost would be very very high and reality is that this property wouldn't cost as much to rehab as it would to build new. Of course if you have any other insight into calculating replacement costs please inform me. I am not 100% sure of the process to calculate.

Thanks all

@Ryan Goldfarb 

Very good points.

I know this area very very well and I agree with your points. Most 2/1 houses in this area rent for about $650 - $700+ but these homes are old and most have no updates. Just a spot to squat. The apartments in this area rent for more than the houses because they are newer. The older buildings of course rent for less. One good things is the area is developing (large companies) so there will be more jobs in the area.

I have a few multifamily units so I do have some experience there and I agree it’s a different animal. My primary concern was the unknown of the rehab. As we all know you can go over budget very quickly when unexpected issues arise. I believe you make your money when you buy and therefore I want to make sure I buy at the right price. I will be doing a little more homework over the next few days and then I will approach the seller with a couple options.

In the meantime please keep any other info or suggestions come.

Thanks 

Jesse good points. 

I feel like if I can get a good deal and rehab the property that is better than buying something with deferred maintenance and unknown tenants. Its more work for sure but I feel the end result would be worth the trouble. 

 Thanks Jesse..

I agree I would like to start to rent the units sooner than later. The negative is the units are all under one roof. Noise and construction could be an issue.

I was running the numbers in a similar fashion and I was thinking of offering around $300k as is and the owner carry financing for 1 year to be safe although I think I could have all units completed in less than 6 months. 

The area is a "good" rental area. I have very low turnover in this area with my SFR properties so I would assume if I have a quality product at a fair price that my turnover would be low in the apartments.

By good area I mean C+ area not A or B. Most people in this area are blue collar hard working people. I fully expect some turn over but not a huge amount.

Also I will be self-managing the property so I will know right away if a tenant is a bad egg. With the building being newly renovated as tenants move in I would make it very clear that we have very strict policies and if they can’t follow the rules they are out.

So in short the area is good not great. I know these deals depend a lot on area, part of the country and so on but really struggling with a purchase price to offer the seller. I can always low ball and work up but this guy is a no nonsense guy and I’d like to take advantage of the owner financing opportunity, 

Ok so I have a lead on a 20 unit complex. All units are 2 bedroom 1 bath units. All unitswill need a complete rehab. All units are vacant.The exterior of the building is in good shape and will need very little work. I have a very good handle on the SFR rental market in this area but I am not sure how well this particular area does for multifamily. Also there are a couple newer complexes in the area. The newer complexes are nice and rent for between $715 - $800. I feel I can charge $500 - $550 for these units after they are completely rehabbed, maybe more. Once they are completed and fully rented I will be self-managing the building so no PM fees.

I understand the rehab will take some time and I am very experienced in rehab work as I have done many SFR flips. I estimate it will take roughly $240k - $280k to rehab the entire project. I will be using personal funds for the rehab and in the end doing a cash out refi.

First question is would I rehab a few units and start renting them out in phases or would I attempt to get the entire project completed and then rent the units? Of course I could advertise and take applications while under construction.

Second question is how would you determine your absolute best offer price on a building that is 100% vacant, with competing units in the area that are newer and have much more curb appeal?

One consideration is that the seller has expressed that he would do owner financing until the project is rehabbed so that I can approach banks for financing,

Just looking for thoughts on this one.

Thanks 

Congrats! I can relate... Many years ago I was a single father, working full time and looking for real estate deals. It was tough but in the end WELL WORTH IT! 

Life is great now! Keep up the hard work,,,