All Forum Posts by: Robert Rixer

Most buildings of this size often only appear on the website of the listing brokerage. Sometimes they will post it to Costar/Loopnet. Almost never the MLS.

This sounds like a common story of out-of-state investors buying up class C with local third party management. It's best chance at survival/turnaround is with an experienced, local class-c operator.

In high interest rate environments, most deals are negatively leveraged so they won't pencil out with high LTV's.

There are a ton of strategies. Most people don't do them because they take a lot of time and effort - and hence those who do it are usually rewarded. Direct mailers, calling expired/cancelled listings, attending landlord/investor meetups, cold outreach, social media groups, fsbo platforms.

I think it's pretty clear the answer is no.

In most places, water/sewage is a landlord expense. From experience, you definitely want electric and gas submetered as tenants will abuse a flat fee. Look into RUBS as an alternate to submetering, which can get expensive.

I would get more details on the numbers and go through it with an experienced investor. 23% expense ratio is laughable for any apartment building, let alone an old class c product. This is not a 7.5% cap.

I think vending machines are very underrated. On a 5% cap building, every extra dollar of NOI equals $20 in value, so you should squeeze out as much as you possible can. You can do it yourself, but the best bet is usually contacting a vending machine company. They deliver the unit, service it, keep it stocked, etc. and then you split profits. Most people don't do it because it's a pain if you manage it yourself and for limited upside.

I've looked at a couple of large complexes there. It was a typical low-middle income midwestern town. Rents weren't great but the prices were reasonable.  A lot of old product tho so buyer beware.

There's a saying "if it were easy, everyone would do it"

There are lenders who will lend to higher LTV's when rehab is involved. Usually the interest rate and points are a little higher up front than a traditional lender but it's a good alternative to bringing on a partner.