All Forum Posts by: Account Closed

I am a wholesaler in Orlando and market other investors houses all over Florida. I would be happy to help you market your properties. I have a good size hungry buyers at my disposal. Let's connect. I am new to bigger pockets and don't know how to send you my contact info. 

What info are you looking for? I have over 25 years experience in buying and selling single family houses both in Missouri and now Florida.

If you don't have any experience in buying, managing or selling real estate I recommend buying single family houses that need work. You typically can buy them cheaper because they need work and then rent them out. I HIGHLY recommend hiring an experienced Management Company to handle the management of these properties. You can easily get tied up spending alot of time 'baby sitting' these tenants as they can get management intensive. Then that will allow you to focus on acquiring more properties. As soon as you get the house rented then refinance to no more than 70% of the ARV. This will allow you to save the house when the market dips lower. Once you have at least 10 houses under your belt then you can sell them to an investor as a portfolio. THEN focus on buying small multifamily. When I saw multifamily that means 5 units or more. Duplexes, triplexes and quads DO NOT qualify for commercial multifamily properties. They lending institutions still classify them as residential, unless you are getting a new loan with more than 5 units total.

I hope this helps. I have lots of off market properties all over central Florida, both residential and multifamily if you are interested. Let me know. Steve Anderson

This was a beginners version of the calculations. You are right there is alot more going into the calculations. 

I have a Florida Real Estate license but I work in non-listed properties. I have quite a few that you can look at but first tell me exactly what you are looking for and where.

I have several MF properties in the Tampa area. What specifically are you looking for?

In commercial properties you don't calculate ARV. You calculate the value of the property by comparing the current net income with the areas cap rate for similiar properties. As an example you take the current net income (gross rent minus expenses). What are the expenses? To determine the value you take the net income (before loan payment of income taxes) but including property taxes and insurance and divide it by the area cap rate for the that age and type of property.

What is the age of the property? What is the typical rent for the offices and residence in that area?

Here is an example without knowing the additional expenses for the 3rd unit being rented, the age of the property or cap rate: before the 3rd unit is rented: Annual income $75,600 - expenses of $22,104 = Net Income of $53,496. If the age and area cap rate for this type of asset is 8% then the calculations are $53,496 / 0.08 = $668,700. This is the current value of the property.

When the other unit is rented then the numbers are $111,600 gross income minus expenses $22,104 = $89,496. Then take this number and divide it by 8% = $1,118,700. This then becomes the value of the property after the next unit is rented, if the expenses stay the same.

So let me know the age of the property, what is the typical rent for this type of asset in the area, and the area cap rate for this type of asset, then I can give you better numbers to work with. 

I hope this helps. 

Steve Anderson

What exactly are you looking for in MF. I have several in central Florida.