All Forum Posts by: Stewart Campbell

Hey everyone! I have come across a deal that I need help on the ARV of an 8 unit apartment building in a C class area of New Orleans Louisiana.

Info on the deal: The unit consist of 6 2-bedroom and 2 1-bedroom

Building is around 5500 square feet

Purchase price is still being negotiated but will fall between 350-370K. At 365K that would equal $45,625 per unit

Renovations I believe will be between 190K - 225K. At 205K that would equal $25,625 per unit. 

This would equal an all in cost at 585K.

The 2 bedroom units will rent at 1200 while the one bed will rent at 900 per month for a total gross rent equaling to 9K per month or 108K per year. 

My expenses per month come out around 4150 a month or close to 50K a year. My expenses included property management, general maintenance, capital expenditures, taxes, insurance, vacancy. 

SNAP SHOT

Purchase price plus renovations: $585,000

Gross: $108,000

Expenses: $49,880 = 46% Of Gross

NOI: $58,120

I have an Idea of what it is worth but would love for other peoples opinion. 

My approach for this project would to eventually do a refinance once all units are renovated and occupied. I may not recoup all of the money that was put into the project but it would way less than a traditional down payment on an 8-plex would be. The area is a C class neighborhood that is very accessible to downtown New Orleans with some new construction done over the past few years. 

Any insight would be greatly appreciated. I can provide more information if it will help evaluate the deal. 

Hey everyone! I wanted to give yall an update on the deal. I decided that it would be best for me to keep the property and BRRRR it out. It is my first BRRRR and went extremely well.

Renovation cost were right around 49K which put my all in cost around 207K. Renovations included 2 new kitchens, new floors throughout the property, new fixtures, new door and hardware, 2 bathroom renovations, and new paint throughout. 

The property appraised for 272,000 which was a bit less than I wanted it to. I was able to pull out 75% of the Value for a total of 204K. I was able to find tenants while we were still renovating and they moved in the day we finished. I was able to rent the larger unit for 1600 and the smaller for 750 for a total of 2350 a month. 

I want to say thank you for everyone's input 

Thank you everyone for taking time out of your day to share your thoughts and opinions. Selling the property would help me get into larger projects however I want to start acquiring rentals and start building my portfolio. 

Hey everyone! I have a deal where I'm trying to decide if my next project should be kept as a rental or sold to increase capital.

Info on the deal: It is a double in Metairie, Louisiana, right outside New Orleans.

1615 sq ft. The first unit has 3 beds, 1.5 bath. Second unit is a 1/1

PP. 157,600- includes closing and taxes for the year. Paid in cash

Rehab- 45-55K which would be all in for 202K-212K

ARV would be 280K-300K

Option one would be to sell to take advantage of the hot market and profit 68K minimum which would be my largest profit for a flip so far.  

Option 2 would be to BRRRR the property which would align with my long term goals.

Gross rent $28,200 a year or $2,350 a month 

NOI is $18,780 or $1,565 - expenses include taxes, insurance, vacancy, maintenance, and capital expenditures.

Assuming loan amount is $213,750 (75% of 285K). Rate is at 4.75% over 30 Yrs. 
Mortgage 13,380 or 1,115

Cashflow at $5,400 a year or 500 per month 

I would not be able to make a profit on refi, however I will be able to pull out the money to use on other flips in the future. My long term goal is to accumulate multiple rental properties and I believe this would be a good first property. It is next to a major hospital and the neighborhood is experiencing many new builds and renovations.

If I were to sell, I would use the profits to increase my capital to do larger fix and flip projects.  I average 20%-30% return on my fix and flips and I could later acquire rental when the market cools off. 

I have been a REI for 14 months and I have completed a few flips and a few wholesale deals. I am leaning towards keeping it but I'd love to hear y'alls opinion.

Thank you in advance

Any recommendations for a title company or lawyer for a "Subject To" deal in New Orleans or Metairie LA

Hello Everyone,

I'm planning to setup a short-term rental in Perdido Key, Florida, near Pensacola. Because it is a condo, I am concerned about liability coverage. Does anyone know any lawyers in the area that have experience with short-term rentals in the area? The property is owned by a LLC but I want to confirm that I am protected. Tips and recommendations would be greatly appreciated.

Thank you,

Stewart Campbell