All Forum Posts by: Ryan McNeill

I have an opportunity that looks promising upon initial calculations, but I want to make sure I'm not missing anything.  Another investor who currently owns a building is asking if I want to partner up on the deal.  The cost for me to buy 50% of his property is $75,000 (so we're assuming a $150,000 pre-renovation value on the property). Estimated total renovation costs are at $240,000, so my half would be $120k in renovation costs.  It is a mixed-use building with 4 apartments upstairs (estimated rentals at $1000/unit.) and 2 commercial spaces below (at $1000/unit), so estimated gross rents are $6000/mo.  I don't have solid numbers on ongoing expenses, so I'm just using the 50% rule.

This building would likely qualify for historic tax credits on the renovation, so we could expect to receive 40% of that $230k renovation (or ~$96,000) back in tax credits that we would split. When I'm calculating this deal, do I subtract the tax credits up front, so that I'm estimating a $144,000 renovation? Even after reading a few articles, I'm still a bit cloudy on how renovation costs figure into my overall calculations (and whether it should be considered when trying to calculate a CAP rate). Can anyone help?

Hi Okies,

There have been a couple of old posts about this with very few responses, so I wanted to ask again if anybody has a great CPA in the OKC or Norman area who specializes in real estate.  Being a freelancer & now real estate investor who is new to Oklahoma, I would certainly appreciate any feedback.

Thanks!

Ryan

Hey guys,

My name is Ryan.  My wife and I relocated to Norman, OK from Los Angeles in the past year to be closer to my family.  Although my day job is that I'm a freelance videographer/director (www.ryanmcneill.com), I have been trying to educate myself as much as possible on real estate investing.  We purchased our first property earlier this year, a 4-plex near the University of Oklahoma campus, where we live in one of the units and rent out the other 3.  It has been a fantastic experience so far (probably because we've been fortunate enough to rent to responsible grad students).

Here is a before/after of that first project:

Coming from Los Angeles, the only properties there that seemed even remotely affordable were multi-families where we would live in one unit and rent the others. Although we never purchased in Southern California, this mindset really turned me on to pursuing multi-family properties for my portfolio. I'm really interested in purchasing more multi-families and eventually apartment buildings. Now that we're in a more affordable Oklahoma market, that dream feels a bit more attainable.

This forum and the BP podcast has already proven to be super educational.  Excited to learn more from everyone here!

Thanks for your response, @Hattie Dizmond.  This makes a lot of sense!

Hi everybody....I'm new to the forum, so thanks in advance for your help.  I did a search and saw a similar question asked on here, but it was sadly unanswered.

My situation is this...I am looking at a foreclosed investment property that is likely to receive multiple offers, so I'd like to come in with a competitive offer.  Although I am pre-qualified on a loan & can make an offer with financing, I recognize that the seller would likely find an all-cash offer more attractive.  My parents have more than enough funds to make a cash offer on this place and are willing to do so on my behalf (with the understanding that I then pay this loan back to them).  If my parents were to successfully purchase this property in cash, would it be difficult to then transfer the property into my name?  Would there be tax implications for them?  Thanks!