All Forum Posts by: Ryan Davidson

My aunt and uncle have named me beneficiary in their will. They were going to sell their primary and buy something cheaper. But have since decided to stay where they are. The property is free and clear. Property was listed for 150k and have had offers, so I believe that is a good value. A couple questions I brought up was how can we protect it for them loosing to insurance companies or medical (nursing home) with declining health? Also if they gifted to me what is tax liability on gifts? If it was gifted what options to pull the equity out would I have. I thought pulling 100k in bank mortgage to use cash for other investments, pay them a percentage for the usage and would still have approximately 700$ monthly payment on 20yrs 5.5%.

@Joe Villeneuve I sent you a request. Would like to discuss this strategy more. Sounds great. Thank you, Ryan

Any lenders in Northern Indiana? 19 units, 500k sale price, 350k offer price, 10% down. Need 100k in repairs. South Bend area.

Derek, I feel the same about cap rate so subjective and no hard numbers. They’re all over the place. I’ll keep working it. Thank you for the reply. Hadar, Thank you for the reply. Their is a possibility of owner finance if I can come up with the right terms. Hopefully we can make it work.

Hello fellow BPers, I have found properties I’m interested in. 1st is 2 buildings 4-1bed each, 2nd is 2 building 4-1bed and 1 building with 3 2bed. All five buildings sale price is $500,000. Realtor says they have come to value on cap rate of around 17-18%. About half are vacant so there is good value add there. Market rents are probably accurate at $450/575. But out of the 6 units I walked through they all need rehab. My initial estimate is $5000 per, up to $10000 on some. I think that’s pretty conservative. At monthly gross of $8925 if all units are rented, I’m having trouble finding their cap of 17%. $8925*12= 107,100/500,000=21%. That’s not taking anything out for tax, insurance, repairs, PM, vacancy like it should. Or allowing for the 100-200k in repairs. 5000 tax, 3000 insurance and 20% for repairs, vacancy and PM is 79,280/500,000=15.8% so that’s closer. I have read and researched many different ways to value multi units, but nothing seams to talk on if repairs needed. I’m comfortable buying a 2% property if rent ready, subtract the conservative 100k and I think at 400k these would cash flow and be a good investment. But then what’s it worth? Or using the 70% -repairs. 500k-70%=350. Subtract 100k for repairs-now I’m really sold. Where do I sign? Does anyone use the 1% for apartments? I can’t see the value being 900k even after rehab. Cap rate is difficult to find in smaller communities it seams (not that much product to compare). Looking for some advice on good offer number. Also how to come up with legitimate value. This is in a smaller Indiana community of about 5000 people. Manufacturing jobs around plus larger city within 30 minutes. Not a booming town, but not poverty stricken either it doesn’t seam. I would give it a C/C- building in C/C+ neighborhood, one on a lake and the other close to downtown. Thanks for any info, good luck to all.

I know this is old but for those who live in the area. What are the issues with Crothersville?

Wagner, look up Dalton York. I know he has a PM and contractor company in the area. May be able to help you out.

@Alex Brant, Thank you for the reference. I’m waiting on a call back from the local bank next to the property. Sounds like they will take it on, with approval. If it doesn’t work out I’ll try those suggestions. Have a great day.

Sam your site says up to 4 units. Is that you max? This is a 9 possibly 10 unit building.

Found a great multi family unit in greater Indy area. I’m about 1.5 hours away, local bank won’t expand that far. Anyone have suggestions or experiences with banks or good private, hard/soft lenders around here? Looking for someone with past experience with a company. So many scams you get bombarded with. I see the obvious signs but it makes me gun-shy with every company I see.