All Forum Posts by: Peter B.

@Adam D.

I put nothing down... I had a great deal of equity on an existing portfolio.  I used what was needed to secure the loan on the 20. I had enough equity to pull a couple of properties out of the group and meet the 80/20 criteria of the bank.  I then used one of the free and clear properties to secure the loan on the 22 unit. No money down. These are not ballon payment loans either. 5 yr arm 3.89 and 4.125 . Max rate of 8%, can only climb 1% a year. With loans on 20 yr the payment will never outpace the paydown..

The crazy thing about the 20, was the bank used an in house appraiser... A year later the underwriters said they should really get an independent appraisal.. Bank picked up the tab on that.. Well in the first year of ownership I decreased expenses by 7k. (biggest thing being winning a tax assessment appeal 5k). I increased the income by almost 30k. The new appraisal only credited me with about 20k. They said the buildings were "out performing the market"  So the new appraisal came back almost 200k more than the purchase price... This allowed me to pick up another 4 unit also with no money down and without the need of an appraisal as this one was new.

Riding off into the sunset!  

@Johnny Hastings

Thanks for sharing. 

Sounds like your assessor has you valued closer to your purchase price than actual value, that helps.  One of my favorite things about multis is the ability to improve the operating cost. 

Boiler with the secondary tank is the best way.. I have 2 identical 4 plexes with new Identical 96% efficent boilers one with secondary tank one with independent water heater. The secondary tank system is 5-7% more efficent.  I haven't looked into billing back the water yet. Mainly because the other owners in my market were not doing it.

Those are really good numbers. I was comparing your's, to 2 of my mid 90's 10 units.  The biggest difference was your tax per unit. You are at about 700 per unit, I am at about 900. Your killing me in laundry. (I have mostly old people) I also have an alarm system that costs about 150 a month.  

Congrats sounds like you have a really solid building there.

@Johnny Hastings

Is your 12 unit individual meters throughout? Just curious, I have buildings with similar rents and lower upfront costs and am nowhere near 350 cash flow per unit. Taxes alone on a 400-500 k building should be well over 10k a year..

@Eric Meyer

I think you have a good strategy. The only thing I would change is make both of them month to month with 60 day notice. It gives you flexability if things don't work out as you hoped with the tenants and gives you ability to get them all the way to market if you wish. 

@Johnny Hastings

Welcome Johnny. I read your profile. Nice work on the 12!  You are on the right track. The bigger multis are hard to find these days. I closed on a 22 sept 1.... We are pretty close to stabalized now, I have one more to get out . Had 5 vacant at the closing.

@Adam D.

The last 2 larger deals I have done. A 20 unit (2x10's) and a 22 (2x11's) were done with no money down and using only equity from other properties. After repositioning they both will appraise for over 400k more than purchase price. The 20 unit I actually realized the forced appreciation in year one due to an appraisal glych on the bank's end..

I realize this isn't the size you are asking, but repeat this a few times you would be there in no time. 

@Jeremy Marley

The first thing that comes to mind is adequate parking. Is there enough space for 2 or more vehicles? Also being a basement unit is there enough room for 8' ceilings?  

You stated you have a blank canvas to start with and it's own private entrance. That's a good start.. If you can run your MEP's properly/efficently (this is where the cost over run's tend to occur or corner's cut) you may have something. If you can't jump through the zoning hoops.. Maybe self storage and or laundry facilities? 

Best of luck!

I get a phone call. Tenant needs to move asap. Not good. Applicant states income as 986 a month and that she is a student.  I said I beleive that is a loan... You have to pay that back. Applicant "No I don't the school just gives it to me" 

We have open house for the place scheduled... I get a call from the same number asking if I can pick them up for open house as they have no money for gas. SMH

I kept it really simple.

 Property Owner Name,

If you were to ever consider selling your property at 1234 main street. I would be interested in purchasing.

Thank You for your Time and consideration.

This has worked for me a couple different times. 

When we had it they were small time junkies/criminals. We called their bluff... I don't fully undrestand your situation and wouldn't advise doing that. I agree though the cops did nothing.