All Forum Posts by: Patrick Elias

This is really good advice, thanks a million Ryan. In this specific deal, the 300k in improvements did not justify the new proposed value of the property. Hence negotiating a lower purchase price is the only way I can recoup my improvements investment and some, while increasing NOI.

The goal for us is to stabilize this property and eventually sell at the market cap in 3-5 years.

Thanks for the help!

Hey BP! I am planning on putting an offer on a 16-unit MF complex in Austin. This property needs some CAPEX spend like a new roof, foundation and AC units. I might be getting too caught up in the weeds of the #"s, but when analyzing my offer for residential I simply subtract those repairs needed from the ARV. I don't feel like it is that simple for MF, if the CAPEX spend will be 300k, does my offer need to be 300k less?

There is room to increase the rents by putting these repairs in, so theoretically, I am raising the value of the property if I put in that CAPEX investment. The amount of $$ I am spending to raise rents is not justifying the new value of the property with the new NOI. Hence, why I would like to make an offer at a higher cap rate than the market.

If I purchase the property at a 8% cap, can I expect to sell it at the market cap (5.5%)?

Hey Ivette! I have been investing in long term rentals for quite some time now. Always happy to share any of my experiences!! You came to the right place to look for advice.

One tip I can share that hurt me some time ago that I think would be helpful. If you are cash flowing on a property after PITI, double check the condition of the property and what type of CAPEX is coming up in the next 3-5 years and account for that. One AC goes or, or a couple windows and your cash flow could be gone for the year. I always recommend a minimum cash flow on $400 per rental property

Hey guys!

I am looking at some commercials deals and am curious to know what commercial loan terms look like. That is the last piece to my puzzle when underwriting deals. My debt will really define if some of my deals will work or not. 

Could you guys point out any mortgage brokers that you would recommend?

Hey everyone! I have been investing in single-family homes for quite some time now and am looking to diversify my portfolio into multi-family and retail investing. I am learning how to analyze/underwrite deals and am building relationships with brokers who have been helping me find deals that fit my criteria. I am looking to expanding my reach to everyone out there in my area involved in the business. If you are a broker, commercial lender, property manager or an investor, I would love to pick your brain and learn from you! Eager to learn! 

Are there any good meetups in Houston?