All Forum Posts by: Ryan Pettit

I am under contract on a 16 unit apartment building in a lower class neighborhood. All units are identical (2/1 with 800sf). They are renting for $500 which is under market.

I’ve learned that there is a HUGE demand for affordable housing in this market and there are only a handful of properties accepting section 8 tenants. There is a 6-12 month wait at both properties in close proximity.

Also - section 8 vouchers would allow for slightly higher gross rents and consistent occupancy.

I’m trying to connect with other multi family investors that have affordable housing units and accept vouchers. Also - wondering if there are grant programs that could offset the cost of upgrading certain units to meet the standards set forth by the Govt Agency in charge of section 8.

Thanks in advance.

I’m looking at this deal: would you buy it?

16 Unit Class C Apartment Complex

-Purchase Price around $600k in Texas

-Located in a decent city but not the best area of town

-Rents are below market by $100/unit but may need slight flooring upgrades to get there

-All units full

-no known deferred maintenance

-NOI if I self-manage = $70,000

Cap Rate around 12%...could be 15% if I get the raised rents over time.

Any thoughts? And is it practical to try and manage this myself? I have other rental houses so I am used to dealing with tenants.

Thanks!

Thanks for your reply. My explanation of the lots was t very clear. 13 of the 21 lots are filled and paying $330. 2 of the 6 park owned homes are filled and paying $450. There are 12 vacant lots. 

The NOI is around $43000. At a 10 cap rate, the value is $430,000 correct?

With 12 vacant lots and water not being sub-metered, I see huge upside potential. 

Looking for help in determining the value of a MHP I’m looking at in Texas.

21 lots - 13 are rented @ $330/month

6 park owned homes - 2 are currently rented for $500/mo

Park has a lot of upside potential and is on city water and sewer. Tenants pay their own electric. Landlord responsible for water bill. 

I know there are a variety of ways to value this property given its current rent roll and possibility of filling the park and making much more money. 

Can someone point me in the right right direction on valuation? Ive seen lots rented x monthly rent x 70 and also a cap rate valuation using NOI.

Thanks!

@Mehul Shah

I’m in Texas too and would like to know lenders as well.

@Bab Adetiba

Did you end up buying this park? How did the Expenses turn out relative to your projections?

@Anthony Carpenter

Hey old friend. I didn’t know you were investing in this line of business. We are considering it as well.