All Forum Posts by: Patrick Bowen

Hi All -

I'm looking to purchase a small 5 unit apartment building in Connecticut which will require a significant amount of capex needed in order to hit proforma returns. Currently, the property is 100% occupied by month to month tenants. Providing tenants with a notice to vacate is always the worst part of investing but as you all know, its nearly impossible to complete a full reno with residents in-place and, the cost synergies of renovating the entire property at one time are too advantageous to pass up. That being said, I always aim to provide at least 60 days of notice (when only 30 days is required) as I can appreciate the time needed to secure new housing.

My question for you all is, if the current seller provides the tenants with a notice to vacate upon the expiration of the sales contract's final contingency date, would I as the new owner be able to inherit their notice? For example, if the final contingency date was 20 days prior to the close, I would only need to wait an additional 40 days compared to a brand new 60 day period if I had to issue the same notice upon the commencement of my ownership period.

Thanks in advance for your valued wisdom and advice.

Pat

Hey Gang - I'm looking to locate a lender who will help fund a condo flip in central Connecticut (ideally also fund reno costs). I know when it comes to financing condos, it can be tricky. However, this condo is warrantable. Any and all recommendations are very much appreciated.

To close this post out, the appraisal came back and the value was a blend between the sales comparison method (specifically focusing on $/unit) and the income capitalization method (via cap rate).

Still waiting on appraisal. This appears to be where the bottleneck is in the lending process in today's debt marketplace.

I will say, the lender has communicated that they will be focused on DSCR but they have not run their internal underwriting on the project just yet to determine how proforma stacks up.

Hi Gang - I am under contract on a 7 unit deal in Central Connecticut with the strategy of performing a BRRRR (previous owner has held asset for 20yrs and has not pursued market rent adjustment despite good quality of asset and individual units).

My question is what will likely be the valuation method an appraiser will use? I assume this property is too small for a cap rate to be applied and instead will utilize more of a gross rent multiple approach. Any insight or comments relating to previous experience with valuations of this size would be appreciated as it will help better estimate what I can likely expect from an after "repair" value standpoint. 

Hi Gang - I am under contract for a 7 unit property in Manchester, CT and was wondering if anyone had recommendations for a home inspector they have used on a smaller commercial property? Thanks!