All Forum Posts by: Robert Rixer

Give someone an inch and they'll take a mile. It's your property, you set the rates. It's fine to justify the rate increase with comps. But you need to take the emotional aspect out of it otherwise you'll get eaten alive in the long run.

"It feels like the city can operate without accountability." Trust me, it's more than just a feeling

The problem starts to be more about cashflow. 

When you start leveraging 90%+ especially with today's higher rates and the high cost of multifamily's compared to their rents, the numbers turn upside down real quick. Add to that when you put <20% down, you're going to have PMI on top of the regular mortgage payments. The PMI gets higher as you step up from 85-90-95% LTC.

So even if you can get approved for this, you need to ask yourself are you willing take on potentially years of cashflow loss, for the privilege of owning the property?

The actual amount seems reasonable and in-line but that structure strikes me as odd. They are trying to show incentive to reach certain milestone price points but it doesn't necessarily align interests between the seller and broker. An offer of $34.95M negotiated up to $35M would actually put the seller down -$95k net versus accepting the initial offer. 

Some great answers already. I'll add, in investing you have to follow your gut and if you're already calling it "very questionable", drop it and move on. There are limitless other investing possibilities out there.

Don't get caught up in unit counts. Unit count is mostly an ego thing. When starting out, you need to be looking for the absolute best deal you can get your hands on whether it be a SFH or duplex, triplex, etc.

@Joshua Christensen Coincidentally I met the managing partner of Infinite Capital, Javier Pineyro last week for coffee. I can't speak to the fund or firm itself, but I found Javier to be an upstanding guy.

It depends what your goals are, but I'm inferring that this is a comfort/long term investment as opposed to a quick flip. In which case you are likely better off going to forced air.

My question is, what are you taking to be market rent? If 85% of the units you are looking renting for around the same rate, surely that is a good indication of market rent. I'm not saying you're doing this, but people will often make the mistake of looking into the highest priced rental unit and making that the "market rate" but it's often not a true comparable to the subject.

Yardi, AppFolio and Buildium are the most commonly used on larger portfolios. They each have their own pros and cons. I personally use Buildium but I'm always looking out for new features and pricing models from the others.