All Forum Posts by: Nicholas Fazio

@Jeff Byrne following!

@Tj Hines the market may not be as heavily farmed as Fl, and certainly something to take a closer look. There a few great areas, this one isn’t crushing it by any means, but has seen 25% population growth at least in 17 yrs, nearly double in property value, decrease in crime, less than average home owners, and a few large employers, and close to an interstate and University.

@Michael Ealy -much obliged ! Cash flow on day one! And I’ll read your post, thanks for the direction!

@Greg Dickerson it's not a true cap on actuals, I basically gathered the cap by looking at the provided NOI and Selling Price since I do not have actual financials. Now, the property itself may be a war zone but the area around is actually nice, but not really in walking distances to a Fresh Market or anything- mostly a church and neighborhoods. It is something that makes me want to think twice on considering the possible upside but as stated above, there is a real possible downside, especially to someone like myself. I figure BP is the perfect lab to test these scenarios.

@Salvatore Lentini- Knew the BP crew would keep me on the straight and narrow!

And specifically, it’s a good market and area , it’s growing and values continue to rise...that being said, this particular sub market area could be stronger , but I really do feel this is largely mismanaged; certainly the actual financials would be a great help. As a new investor, This is where I tend to start, a rough eval, possibly backing into a deal, seeing what numbers should be, and figuring what would work. If my processes are off, this is where I want to figure that out so I’m all ears.

It’s also a “60% occupancy “ so definitely not stabilized.

I know 50 units may be a big initial first bite, however I would want to JV on a deal like this w someone who has exp.

Hey guys and gals, this is a example of a deal near me that I would appreciate your opinion on; checking to see if I am on the right track or not-

This Garden Style 1980 built apartment complex is 50u, listed @$1595000

($31,900/u)

Listed NOI 158109

Rents not listed

{Estimated Cap 10}

Listed vacancy: 60%

16u are single, 34 dble beds

Plan

20% down ($319000) or 30% ($478000)

Raise $500k-600k total to allow add’l costs/repair- plan might be to Reno/update< 20 units, landscaping, paint.

For 10% cocr will need to net $32000- 45,000yr, actual 47000-62k per year

With Market rent @$680 (average)and at 90% vacancy for 50u, roughly max GSI $367000

Could Expect 10-19% cocr or >

Strategy- Stabilize/Reposition then Cash out refi

Thanks!

@Brian Eastman thanks and could You speak to how UBIT would be exempt from an SDIRA investment into real estate? Need some clarity

@Mark Welp could you explain further why you would not put SDIRA into RE, please sir and if you have an IRA, what's the best option for investing into physical RE? thanks .

@Danny Randazzo yeah I like this property, but I just see the capital x’s being the real albatross here and for that reason I will not pursue, non the less it’s been fun and a learning experience to put pencil to!

@Chris Levarek, well put and thanks for the clarity!