All Forum Posts by: Rebekah Scott

Hi All, 

I have a fascinating project that I believe is a goldmine. It is a covered land play; meaning, there is a 5-plex that is turnkey and completely occupied on this 15,000sqft lot. Rents are high so it pencils as a 4.3% cap rate (conservatively). However, the lot is zoned for up to 8 additional units. I spoke with city planning and they said the lot used to be two lots decades ago, and to re-split it requires an email to them to let them know. There is huge value in not having to go through the rezoning process. They also said that building another quad on this land would be extremely easy. So, that got me thinking, and this is where I would love to hear from you all! Couple strategies come to mind. 

1. Purchase the property, sit on it do nothing. 

2. Purchase the property, sell off the land, and use that money to recast the loan and create more cashflow. 

3. Purchase the land, build a 4-plex on the lot. Depending on financing, if it is cashflowing- keep it. If it makes more sense to then sell off the land, great do that. 

4. Purchase the land, build a 4-plex, but zone them as condos and sell them off individually.

My ask- I need partners to make this happen. Also, advise. Does anyone have experience with something like this that they can share some insight on? IF there is someone interested in this deal, please reach out to me directly because I only shared a limited amount of details on here. 

Thank you all!!! 

Quote from @Dave Skow:

@Joe Mathew- I am in WA  but I  have  seen  many WA  moving / investing in ID  in the past  few years ...so depending on  what and  where you are  considering - that marketplace  seems to have been healthy  ( and likely  because of this , the markets  prob  up  quite a bit  for most areas  over the past few yrs  )  .....

 I am considering Nampa. Any knowledge on that area?

Quote from @Brian J.:

Quote from @Ben Scott:

Is the Boise market slowing down at all? I heard the market appreciated something like 30% last year.

 On the podcast they said Idaho was the most expensive place to live! lol

 Do either of you have any insight on Nampa? I know Boise is blowing up, but do we think Nampa is on the bleeding edge or will it always be less desirable to live there? 

I am also looking to place some money in Boise, but the deal I am looking at now is in Nampa. Does anyone have any insight for me on that area? The internet doesn't seem to be too kind, but invest for the long term. Any and all input on this would be very helpful. Thanks! 

@Jonathan Marsh Jonathan, if you are newer to the multi-family unit, buying a 4-plex in Colorado Springs May be a really good option for you. I have placed many of these, and had really great returns. Roughly 400k, $1,000 for each unit, really low taxes, and cheaper (than Denver) property management. Class B and class C properties, but they do really well, and there is a ton of room for growth in them. Like I said, I have placed several of these, and happy to send you the model I use to run the numbers. It is extremely elaborate.

@Bart H. Which is a possibility, but I am only increasing the price by $1,000 over what the other offer is asking. Therefore, it doesn’t make a huge difference. Does that make sense? Am I elaborating enough on that? Thank you for your inquiry!

@Balane Frece This is my favorite question, because it is also the question I answer for most. Putting your money into the real estate market first starts with choosing the right agent and the right market. I live in Denver, CO and about 50% of my clients are out of state. Step 1: familiarizing yourself with the market you are about to put your money into. Step 2: setting expectations of what kind of returns you are going to receive. STEP 3: get plugged in with a KNOWLEDGEABLE INVESTOR oriented agent and brokerage. Step 4: start placing your money in places. I have had great success with 4-plexes recently. They are around 400k, but you are cashflowing around $1,500. 8-10% cap rate with 15% IRR. I would suggest putting 25% down on as many multi-unit and single family houses you can. Having a variety of properties is a great way to create cash flow and also build long term wealth. That is what I always suggest. Happy to answer any other questions you may have.

@Julie Gates legally, if the listing agent, they are not allowed to say they don’t. However, it is one of those things that is hard to consider. When I write my offers and we are competing against someone, I ALWAYS say, “we will raise our purchase price to X with the proof of other offer.” Keeps everyone accountable. Might be worth mentioning to your agent.