All Forum Posts by: Shane Jeanfreau

This complex still available? If so send me the details please.

@Kiley Nakamura

when will it start?

@Stephen Kunen This deal is listed on the MLS. I got a showing right away and realized with the occupancy at 35% and deferred maintenance there is noway I could get bank or agency financing. I brought up owner financing till the property is 90-100% occupied and owner agreed. I am still my 35 day DD so Im currently getting construction quotes. Not all units need rehab but some need updating. The 250-300k Was my ballpark estimate being conservative. I should be getting construction quotes back this week.

@Alina Trigub I need 20 units rented for it to turn a small profit. It is not a rent controlled area which is good. Like you said the hard part will be to find a property manger to manage this type of asset. I manage my other small 4 plex and duplex properties but having a full time job also would make this impossible to manage. Do you self manage or hire out for your small complexes?

@Jared Carpenter $700-750 with tenants carrying utilities for this particular area. There is a few smaller complexes ( 26 units and below ) on this same street that are 100% rented. The owner made out terms of $50k down @ 1.25m over 25yr AM. The area has little job growth since the oil bust in 13 but is slowing coming back up here recently. Again the place will need around 250K worth of work.

Its a small city in southwest LA of about 35k residents. The place only has 14 of the 40 units rented at this time but the lady is 80 years old and leaves it up to her daughter to run. I looked up rentals on the same street and called a few owners. One owner has 26 units and is 100% occupied. She says she never has an issue renting as long as you stay under $800. The unit mix is all 2bd 1.5bth with all of the same layouts. Its basically 10 4 plex's. I have spoke with numerous property management companies and plan to meet up with a few when I get construction quotes. Place will need about 250-300k worth of work but owner is willing to do 50k down 6.5% int with a 25yr AM.

Nervous about jumping on a good opportunity to purchase a 40 unit deal in a lower income area. The economics of this city is based off of fishing/oil and gas. Seems to me that systematizing a lower income area will be harder. This place is a little over an hour from where I live so ill be using property management. Any thoughts, experiences and anything else you know about running a smaller apartment complex would be helpful.

thanks!

@Jeff Kehl I have enough to cover around 250k but anything over will have to pull equity out my current properties. I sold a few duplexes i had last year to try and tackle something bigger but never thought i would be trying to do a 40 unit honestly.

Sorry taking so long to reply because we are actually STILL negotiating the deal.The place has 14 of the 40 units rented. Owner is 80 and daughter is 65 wanting nothing to do with the place. Its set up like 4 duplexes all 2bd 1.5bth with same layouts. Place needs about 250-300k worth of work for sure. Its in a small city of Houma,LA. Its a oil and gas/fishing economy which somewhat makes me nervous. The 14 units currently rent for 675 with tenants carrying utilities. This is some what of a lower income area but i spoke with local landlords and say the area rents fast. With that being said most podcast and blogs i read say stay away from these areas. So far deal goes:

50k down

6.5% int with a 30yr am

insurance is 33k a year

property tax is around 10k a year

purchase price of 1.25M