All Forum Posts by: Patrick Soukup

@Arn Cenedella thanks for your input on this. I completely agree with the feedback. I am curious though. A 50% expense ratio? I mean of course it depends on the age of the building and it’s condition, but I wondering what you’re using in your expense ratio? Are you using 50% ratio for all your estimations when looming at Multifam?

Taxes

Insurance

Maintenance

Property Management

Cap Ex reserves

Anything else?

Have a great day. Thank you for your input!

I'd take a tenant not paying rent all day long. Come in with new ownership, new lenses, a fresh communication slate.  

Cash 4 Keys, pay for a month at a hotel, hire a moving company and pay for a storage unit for 2 months. All options that I would absolutely explore for the right deal.

The right deal:

So many variables. With a non paying tenant, you'd have to assume a property that will require some rehab upon move out. You'd also have to take into consideration that the eviction moratorium could get extended and if so, what does your state allow for time to evict once it is allowed?

I'd still buy that property 70% of ARV less repairs. Included in repairs would have to be 2-6 months of lost rent/holding costs.

Interesting radio spot. May be worth exploring.

Thanks!



 

If it's in a commercial zone, you have a potential for a lot of different uses. It also depends on what type of commercial zone you are in. More than likely you could convert to a duplex. ALSO, most commercial zones allow for STRs which could (depending on how you operate it) add significant cash flow (also significant expenses). 

It sounds like it would be minimal expense (no additions, major plumbing/electrical changes) to change to a duplex. Without seeing the numbers, on any one of my rentals if I can turn one into 2 and not have to buy more land or get another water tap..... YEP! That would be happening no questions. 

I would take some time thought to explore ALL of the possible uses for the space and determine the basics of real estate Highest and Best use for the property. But when considering residential tax rates vs commercial tax rates, if you change to anything other than resi, better double and triple check the numbers. 

Cool opportunity you have! Explore it :-)

Hey all! Come have some food and drinks and talk shop. We will be meeting at Samson's house and will utilize the deck and be able to sneak indoors as well. Hope to see you all there!

@Ryan Swain and @Sara Mickelson - We will be meeting next Thursday at my partner's house. Please join the meetup and RSVP - https://www.meetup.com/Legacy-...

Hope to see you both there!

Looking forward to Thursday evening. Message me if you have any problems finding us, send me a message! See ya'll soon!

Hey @Aimee Lawrence - excited to follow your journey with the ADU. There is good opportunity, but yes, finding the right contractor will be key!

Are you downtown? Generally that is where I am seeing many of the ADU's that are popping up.

Excited to see you idea come to light, @Jay Hinrichs! Appreciate your willingness to share and your knowledge across the real estate world.

"Not to change the subject Steve and I probably need to write a blog on this.. but as I sit here this morning reading the news.. there is going to be some very unique opportunities for guys like you that have advanced degrees in how to put real estate deals together.. I am already percolating on a new model.. I see one hedge fund that tried this idea in a different way than what I am thinking but for a local who is got it together should be a very nice addition to ones tool box." -Jay

I am in a similar boat, @Brian Ellis. Been with the same family company for 10 years. Fortunately, they've allowed me to cut back to 1/2 time and only cut my salary by 40%. I've been with that situation for 2 years but for some reason I STILL have the itch to go full time on my own.

I'll be excited to watch your story. Please share as you go along. Good luck!!

Please come join us for a good evening to catch up on all the deals you're doing, how business is and what your plans are for the future!

See you all soon!

Hey There, @Dan Mackin, @Josh Hopwood and @Nick Babler - Good to connect with Northern Colorado folks here on BP. My business partner Samson and I have been running a meetup that we began in 2019 which was paused for a few months this year but we're back up and going. BBQs and beers at Fossil Creek park. Lots of fun, good people, pretty free flowing right now.

Looking forward to connecting with you all as well with NoCo Badass Group. I'll check it out!