All Forum Posts by: Oscar Almonte

Will take a look. Thanks

If you do not have access to the MLS what is the next best an accurate software to use?

I read some comments and I am lost. Some say this is it then it get bashed. I am looking for a few comments and the one that is most common with the response is how I am going to go. 

Thank you

Why would they wipe out a whole county on the Assessment Tax Records? 

Thanks for the insights. Good points. Just learning and trying to see what others see when it does not make sense to me. Thanks again

In trying to get a grip of multifamily properties investing, I know with my criteria what I am willing to pay. I have recently been looking at some multifamily that have been sold on the MLS in the area that I am focused in and I just do not see what the person that bought it is seeing after crunching the numbers. Am I missing something. Can some savvy investor shed some light. This is a 3 unit.

PP 529k

Closing cost say 2%

FHA

Rent $4,495

Taxes $9,218

Water for MF for the area $51 monthly 

Without expenses this person is only making 520ish  after I plug in the data.

When I put my numbers of 5% repairs, 5% cap ex, water 51, vacancy 8%, PM 10%

I will be losing 7 hundred and change a month and will not cash flow until year 15.

I am over analyzing or missing something.  Thank you....looking for some clarity. 

Quote from @Brenden Mitchum:

Hey @Oscar Almonte

I hear your frustration - finding ARV on small MF in an area with very little small MF can be a huge pain.

My first question would be, do you need the ARV? If this is not a BRRRR and thus does not have an important refinance component, just calculate cash flow without ARV.

If you plan to BRRRR and need ARV for the calculations, it might help to think more about why you need that ARV. You're trying to guesstimate what the appraiser may value the home at in x months, right? Well, what do you think they'll do when they look for comps and find nothing? My bet is that they aren't going to use the income-based approach since this is residential but might instead look at smaller MF and use a per unit value to extrapolate the value of your quad. They will likely also use a cost-based approach and may even take more of an emphasis on this since the comps-based approach won't be as reliable as usual.

However, this is all speculation. My next move would be to speak with an appraiser in my area or lender. Essentially, figure out what an appraiser would do and you'll have your answer. 

Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!

Sorry for the delay. I am a newbie...Thanks...great points. Actually, I have an abundance of MF around me. The only reason I was looking for the ARV is because the BP wholesale calculators asked for it. I also read that we can not use the income approach unless it is 5 or more units. But I have been reading many people do use the income arroach to come up with offers for Duplex Triplex and 4plex.
I just been focused with my head down and just been plowing through potential leads. Just analyzing to learn my market and come up with offer numbers to chase. 
Yes...I been calculating offers based on the cash flow. I also been using the rental calculator if I have no info on rental income for these leads. My focused at the moment is to raise cash, so I am going to focus on wholesaling. I will definitely go into owning rentals down the line but I am in tough $$$ situation at the moment and cash is the priority.
BRRRR is something that I am interested and looking forward to how all that works. If you have any advice for a newbie I am all ears.  :)

I will definitely reach out after I am finish analyzing and get ready to skip trace all these potential leads.

Thank you

Quote from @Nathan Gesner:

Find a multi-unit property and break down what they are charging per unit or price per square foot, then apply that to your unit. For example, a tri-plex sells for $300,000 which gives you a price of $100,000 per unit. If it's 2,100 square feet, you can divide the sales price by the square feet and get a price per square foot of $142.86, then multiply that by the square feet in your property to get a value.

 You sound like an angel to me. I see bright lights around your comment...LOL

Thank you

It is tough to give an ARV when the calculator requires it when there is none to be found.

I am using the MLS trying to find this info. I write in all the blocks around the subject property within 1 mile radius. I work myself from three months all the way to 1 year hoping to find this info but there is none.

I then got desperate and said what the hell...let me try the whole damn zip code and nothing comes up for a 4plex. I am just trying to be as accurate as possible but it is taking me way too much time to analyze properties. So I have a few questions.

1. Can I just find duplex or triplex near by and use the rents to get the GOI of these properties to project what a 4plex is valued?

2. Or should I use the rent estimator calculator and do the same as in question 1

3. Or can I use the comparable sales of similar beds and baths of duplex, triplex and divide the purchased price among the units to come up with a price per unit and project that number to a 4plex?

It is tough to give an ARV when the calculator requires it when there is none to be found.

I am using the MLS trying to find this info. I write in all the blocks around the subject property within 1 mile radius. I work myself from three months all the way to 1 year hoping to find this info but there is none.

I then got desperate and said what the hell let me try the whole damn zip code and nothing comes up for a fourplex. I am just trying to be as accurate as possible but it is taking me way too much time to analyze properties. So I have a few questions.

1. Can I just find duplex or triplex near by and use the rents to get the GOI of these properties to project what a 4plex is valued? 

2. Or should I use the rent estimator calculator and do the same as in question 1 

3. Or can I use the comparable sales of duplex, triplex and divide the purchased price among the units to come up with a price per unit and project that number to a 4plex?

Quote from @Joe Martella:

If the rents are below market, then the purchase/offer price is made based on the incoming rents.  I purchased a property knowing that there will be value add as the rent is increased over time.  The rent was $450 below market rent.  The prior landlord never raised the tenant. I pasted a couple of threads below that may help with some information.

if you need/want to raise rents immediately, you can ask the seller to deliver the property vacant.

honor current lease or hike rent? (biggerpockets.com)

Back in the game, getting ready to inherit tenants (biggerpockets.com)

 Thank you,