All Forum Posts by: Scott Michael Gross

Hi BP Community- happy holidays! Was wondering if people could help clarify how to estimate the appraisal value of a multi-unit? I am looking at a 12 unit complex and I understand that it's potential income minus expenses and then divide by the cap rate.  However, what expenses are taken into consideration? It seems to be historical vacancies and repair costs but not property management, taxes, insurance, etc.  Also, if the units are rented, but the rent is lower than market value, which rent would be used in the income portion?  Any help is greatly appreciated!

sure- but does the NOI include 5% for vacancies and X% for repairs in the NOI equation?

Hi All- I am considering my first purchase of a property with more than 4 units (9 for this one, to be exact). My broker told me that most appraisers do not include repairs or vacancies when calculating the NOI. As I am trying to get an estimate of what the ARV will be, would the BP community agree with this? Obviously, there is a big difference in ARV with and without these items.

Thanks!!

 have his info? 

Thank you all for the input!

Hi All- I was wondering what tools out of state investors use to do research on specific areas/towns/blocks? I know that you should get help from the realtor, PM, etc but don't want to ONLY rely on them. There are a lot of tools out there nowadays, I get that, so I was hoping that some people could chime in with what they've used to help make decisions.  

Thanks!

Hi to the wonderful BP community!

I've done a few deals now and came across an interesting opportunity for a multi unit in Mt. Oliver, Pittsburgh. I am getting mixed feedback from different people that I trust and was wondering if anyone could share some insight if this area is a stay away or something that is up and coming? I would renovate and then hold for some time but don't want to be in D type areas (been told it's now C and trending towards B because of surrounding areas improvement).

Thanks!

Hi All- does anyone have suggestions for PMs in the York and Harrisburg area? Unfortunately, my current PM is not cutting it (bad response rate, not taking good care of the properties, says one thing and then contradicts themselves later on).  Any help is greatly appreciated!

Hi All!

My partners and I are relatively new in the game. We were undergoing our first BRRRR in the Pittsburgh area and were in the process with Civic financial services but they just paused new loans so we need to find a new partner. We were excited because they were offering us a non-recourse loan on a five year interest only that would convert into 25 year ARM, without needing wet signatures. Long shot but does anyone know of other lenders that can offer us these terms?

Thanks for all the help this community gives us!

 no, it's getting worse. will not add another property with them... it's been an absolute disaster and I tried to give it every chance because they are integrating tech with traditional. The tech is terrible, the customer service is terrible. Stay away

 Hey Terrance, sorry that I missed this. If you're property is in decent shape and there isn't much concern of the renter paying, then I would decline it. In general, their platform has not been good and we are getting more frustrated by the tech side of things. It has been hard to keep track of the accounting side of things, which should not be that difficult. They claim to be coming out with new features in the coming weeks but I don't have much faith, unfortunately. 

Hope that helps!