All Forum Posts by: Ruthber P.

Ashley:

Yes, I have reviewed the current taxes and factor an increase of 15%, do you think I am way off?

RP.

Please send me the details, is this MLS or off market?

thanks,

I am looking to offer in a multifamily in Riverdale, IL,  numbers look good, cash flow is ok on about 90% occupancy and the building is ok, lots of multifamily buildings in the area.

Not sure how the rental market on Riverdale will be a long-term, know that forecasting is not a science.

Any ideas on what to look?

Does anyone have any buildings or rentals on Riverdale?

Also shopping around for lenders, so if you have a good experience with a lender please send me the contact info.

RP.

Greg:    

First, do not get discouraged by anyone, someone else is doing it so you can, not going to be easy.

If not done already I suggest to look into this:

Enforce that PM uses a great website for rental screening, ones with a background check and choose the best tenants possible.

Review you leases to close any pitfalls and enforce the lease to the T.

Keep the units in good shape and keep extra cash reserves ( fixing + trip expenses )

Tiger than normal lookup on the PM ( have second PM line up ), vacancies, unit showing costs, repairs, fees, etc,  require a once a week normal operations report and a once a month full operations report.

Family, friend on virtual assistant that regularly drive by the property and reports to you, or if cash flow allows and deem beneficial you can install security cameras and remote view activity on the property, nowadays there are lots of options.

Check if feasible to get a home warranty plan for the units so some pain issues are self-managed by the tenant via a phone call to the warranting company

In which city/state is the property? 

Best of luck.

RP.

Tony:  Thanks for your comments,  yes the owner is interested in financing, I thought of refinancing on 16 months but you are right is kind of short-term so will propose ballon payment with 3 or 5 years.

Brent: On the opposite of living dangerously I am trying to see all options, If I can save about $100K to do another deal I am up for it, the idea is to keep the deal profitable to me, take the tenant dealing out of the sellers hands and give the seller some extra interest of what any bank will pay, and in 3/5 years pay him off. 

Also, remember that Chicago is not a cyclical market, so downturn is relative to location, your type of rental, price and other factors.  

Lots of people were buying multifamily while others were on foreclosures and some others almost did not experience vacancies.

What will be a good rate when dealing with seller financing on a multifamily (925K), my bank will give me a rate of 4.5% but if dealing with the seller financing I will offer 10% down payment a higher rate and 16 months ballon payment.

Trying to think of a good way to present the deal to him with some incentive to consider my offer.

How high is the standard when dealing with seller financing,  private money goes from 6% to 12%.

Any input greatly appreciated.

Hi George:

Welcome to BP, I am a newbie myself and posed with the same question, so I found a few of them, you can find them on meetup. 

Here is a small one I did go in the past and find some value and good advice from members, this one is somehow close to you; on Downers Grove.

https://www.meetup.com/DuPage-County-Real-Estate-I...

I am looking for multifamily investments for buy and hold and been analyzing a few deals but want to get the most bang for the money in my first multifamily, so what is your interest?

Please do not hesitate to ask BP members for any advice, we love to share our knowledge.

RP. 

Thanks to all for the comments.

As Greg Adlington comment I should give a little more insight to the deal.

The 12 family is cashing out positive, over 10% cap rate, fully rented, no repairs need it for now, rents are a little low so there is some room for improvement, not planing to live on the premises, just buy and hold, no second mortgage from seller,  

My credit score is 775, I paid off my major credit card every month, no car note, no mortgage, just renting for now; counting rent which is my biggest expense my Debt to Income Ratio is 31%, I am self employed, got a little LLC and have all tax papers, banks statements to prove income and that sort of things.

Does any other members have some preferred lender experience in Chicago, IL area?

Please let me know if any other info need it.

I am located in the far Chicago west suburbs and short on the 20% down for a 12 family.

Norm is to put 20% down but is anyone aware of a lender that will got with 15% or 12% down?

The 12 unit building is listed for 925K so before doing an offer and negotiating the price I will like to get pre-approved putting 12% or 15% down.

Any advice comments or info greatly appreciated.

Yep, google is always there but with topics like IRR some websites have kind of convoluted answers or maybe is that I prefer answers with examples applied to real situation scenarios.