All Forum Posts by: Jason Graham

I'm looking for the same thing. I'll keep watching I anything shows up.

thanks

Jason Gtaham

Julie,

Too many similarities not to post. I love Crossfit and invest mostly in Skagit and Snohomish county. I have a multifamily in Mount Vernon. Right now I'm in the middle if a flip in Bellingham. Sounds like you have some great experience to draw from with your parents.

Occasionally I come across deals bigger than me. When I do ill try to find you to see if your interested.

Good luck to you. Jason Graham

My income number were per month and supplied to me based upon demographic studies performed by equipment manufactures.  The value at a 10% cap is about $1.1m.

I have a separate LLC running the Laundromat and renting that space from my LLC that owns the property. I have had a soft opening for two weeks now without any advertising and I am nearly on pace to meet the income projections without my grand opening and marketing strategy.

Thanks for your replies and any lenders you may know of.

I am looking to refinance an 8 plex apartment building with a laundromat attached to it.  I purchased the property at auction back in August using hard money, evicted everyone, fixed it and put good screened tenants back in.  I then rehabbed the laundromat with all new equipment.  The gross rents for apartments are $5725 and the Laundromat proforma put together by equipment manufacturers in the business shows another $4 to $6k of income.  I am $576k into the deal at this point and am looking for long term financing.  Any leads would be very helpful.  Thanks

Jefferson, I am not sure what to say except that your numbers are all off. My numbers come from three years of tax returns and it is assessed at $410,000.

Maybe the post was a typo? I do appreciate the feedback though.

To update though the seller balked at my subject to paperwork. I am working on structuring a new deal with the bank, but I don't have it under contract yet, just a verbal agreement.

I got it under contract for 360. The seller agreed to a subject to sale and to carry the rest at 6% with only $20k down. I found I can increase rents by $9k per year with modest improvements and from talking to state officials I can add 4 more mobiles without dealing with the county. Scheduled to close 10/1.

Thanks for your help

Thanks Austin.  I threw in the debt service for 80% down - without that and your calculation is correct.

After looking up the calculation method it looks like I would be at a 4.7 CAP rate at the 340 purchase. I don't see a 10 CAP rate as realistic with this deal and it seems mythical to find it anywhere else. Are other multi families going for a 10 CAP rate? What do you guys think about a 4.7?

I appreciate your patience

Thanks for looking at my info.  The park sits on four acres in an area that is appreciating due to it proximity of commuting to both Seattle and Portland. Tribal casinos / resorts are also a big plus to the areas growth.

The park management fees are already included in the expenses on my first post. It has 8 units that gross $5100 per month and each one is rented based upon size and condition. Seven of them are single wides and there is one double wide. The park was originally designed for 12 units but only 8 were installed.  Supposedly the county changed some zoning so no more can be added above the 8, but appealing that is an opportunity. It has the infrastructure for 4 more mobiles. The oldest mobile is late 70's with most of them 80's vintage and the double wide 90's.

I see another opportunity in replacing the single widest with doubles and increasing the rent. The thought crossed my mind as well to sell the mobiles to the tenants and then rent the space like a more traditional park?

Thanks for your time.  Jason

Bruce,

Thanks for taking the time to respond.  I saw Frank Rolfe in another thread use a formula of rentsX12X.5X10 as a valuation which gave me the $306k.  I am still a little puzzled at this calculation and yours because the great cash flow potential is getting just passed up.  If I were looking at this as an apartment complex it would be a no brainer at $340K.  It doesn't hit the magic 2% monthly rent of purchase price, but it is a lot closer to that than most rentals.  The three year financials are solid and I am finding that mobile repairs are cheap and there are always used ones to find to replace them as they age that are cheap.  I am still puzzled as to why you don't count the rents from the units?  The bank is counting them and is willing to finance on this deal with 20% down. 

I have no idea what you mean by 10% CAP rate?

It cash flows in a "worst case scenario" year at about $16,000 after any and all expenses.  Trust me I combed through all of them and I can't figure out a reason not to go forward.  It may not be the most ideal, but it performs better than most stick built multi families in my area.

Thanks Jason