All Forum Posts by: Jerome Nunez

As an active member of BiggerPockets, I’m excited to share that I’ve officially launched my real estate platform! My focus is on acquiring Class C value-add multifamily properties across the Northeast - specifically CT, RI, PA and MA.

Here’s a quick overview of my acquisition criteria:

• Class C value-add multifamily

• Unit Count: 5-20 units

• <$2MM total acquisition cost (all-in basis)

• In-place rents significantly below market

• Not located in a flood zone

• Utilities sub-metered or separated

• No major capital expenditures required (roof, siding, boiler / HVAC in good condition)

If you have any leads, properties that might fit these criteria, or would like to connect for a quick introduction, I’d love to hear from you! Can follow-up via direct message with contact information.

Looking forward to connecting with fellow investors and growing alongside this amazing community.

Thanks Zalman! 

I recently purchased a 1500 SF two-story rowhouse in New York with a building class designation of Two Family Dwellings - Brick (B1). My partners and I subdivided the property into two distinct rental units:

• Unit 1: 2 BR / 1 BA
• Unit 2: 1 BR / 1 BA

Given this setup, the property is now being used as a multifamily dwelling. Should an appraiser compare it to other two-family properties in the area?

Our initial appraisal compared the property to single-family homes within a 3-mile radius, which seems inaccurate given the current use. Any insights?

Thanks for this, Chris. I do not have language in the operating agreement that would force a refi if a member requested to be dissolved. 

Is there any instance in which you get liquidity but keep your name on mortgage liability? 

BP, 

I own a 33.33% membership interest in an LLC that holds a two-family property, alongside two partners with equal stakes. Due to strategic differences, I plan to dissolve my interest within the next 3-6 months. However, my name is on the mortgage.

Are there ways to dissolve my interest and remove my name from the mortgage without selling the property? I’m considering taking owner’s draws to recoup my initial equity in the short term but am unsure about the tax implications. I’ll be consulting a CPA, but would appreciate any insights from the BP community!  

BP, 

I’m looking at an 8-unit deal in the Northeast that was historically a non-profit co-op with tenants already in place at substantially below market rents. The broker mentioned that the co-op will be dissolved upon sale. The new owner will be able to decide if they will gradually raise rents to market or have tenants move-out, renovate and mark-to-market. This sounds too easy…  

Has anyone had any experience with this in the Northeast? Are there challenges to be aware of?  

@Logan Singleton - Just emailed you! 

@Erik Estrada - Properties I'm looking at are typically ~80-85% occupied with strategy based on renovating vacant units and then MTM, as well as turn add'l units that are vacated during hold period.   

@Logan Singleton - Thanks for that color, Logan! One of the challenges I'm having is reconciling the cost of such debt (priced at 9-10% for <$5mm TEV deals), which creates operating shortfalls and thus additional equity contribution.

I'd love to find a lender with competitive debt terms / structures that aligns with my investment strategy (opportunistic, 3-5 year hold period). Is this something you work on?  

@Erik Estrada- If there are long-term fixed rate financing options for value-add / opportunistic MFH (5-15 units), that would be ideal. I only mention bridge given the lower in-place DSCR. Is this something that you work on?

Additionally, my hold period would be in the 3-5 years so loan products that align with my hold period would be preferable.