All Forum Posts by: Sushil Iyer

Hi Jordan - we have heard great things about Memphis as a real estate market. Given our experience level, we are not ready to make an investment in a place that far away from home. Even Killeen seems too far, tbh. LOL! But, thank you for the tip. Maybe one day.

Quote from @Jordan Ray:

Quote from @Sushil Iyer:

I am a new(ish) investor with a handful of properties in the DFW area. I am considering going outside DFW for my next investment, but not too far (at most a 2-3 hr one-way drive from Dallas). Killeen is one option. Does anyone have experience/advice on investing in Killeen? Specifically, is the rental market stable, and is reliable assistance (like agents, property managers, contractors, etc.) available? My strategy is buy & hold for stable cash flow with some appreciation over time.

Also, if there are other markets like or better than Killeen, can you please share?

Thank you.

Memphis, TN is a fantastic market for stable cashflow with some appreciation over time! Have you ever looked at Memphis TN?

1 Vote

Killeen, Texas

Quote from @Steve Tse:

I am out Out of state investor so don't want to give you wrong information, my best advise is to find a local agent who knows the area and can help you better than me.

Understood, and much appreciated. Thank you, Steve.

0 Votes

Killeen, Texas

Quote from @Steve Tse:

Killeen is a good cash flow market, but you have to buy in the right area and also time your tenant turnover to the Permanent Change of Station (PCS) season since it is predominately military town

Thank you, Steve. That's very helpful. Do you have any suggestions on the right/wrong area in Killeen? I am specifically looking at zip codes 76543 and 76549. Thank you.

1 Vote

Killeen, Texas

Also, if there are other markets like or better than Killeen, can you please share?

Thank you.

1 Vote

Killeen, Texas

Thank you so much. This is very helpful.

Quote from @Addy Chupa:

When analyzing deals, I usually include a 5% vacancy factor and 5% repair factor based on annual rent. I also assume a 3-4% yearly rent increase, which naturally increases the vacancy and repair amounts over time. For expenses like utilities, property tax, and insurance, I estimate a 3% yearly increase.

However, keep in mind that if you do renovations in the first year, it’s likely you won’t need the full 5% repair allocation for the first or even second year. If it’s not used, I treat it as reserve funds.

0 Votes

Thank you, Tim. Indeed, very helpful.

Quote from @Tim Delaney:

The best way to estimate expenses is experience and knowledge of your specific asset type and market.

For vacancy, that will depend on your market and the quality/desirability of your type of unit. If you have a 6 bedroom in an area that does not have a university (students looking for shared space) or is in a family friendly place it may sit vacant longer between tenants.

For Capex, try not to use a generic number - look at the roof, furnace, hot water tank, kitchen - when will each need to be done and what will it cost? Then divide that cost by the amount of time between now and then and that's how much you should be putting aside for Capex.

For general maintenance, the age and condition of the building will play into that. A new build should require much lower maintenance expense vs a 100 year old home.

Hope this helps.

0 Votes

When analyzing a deal, the expenses data available (opex, vacancy, PM, capex, etc.) is at the time of purchase. However, this data is bound to change post purchase. What are some tips to estimate what these expenses will be 6M, 1yr, 3yrs post purchase? Alternatively, are there some ballpark estimates for each expense item (e.g., 8% for vacancy, 3% for capex, etc.) that can be factored in as realistic or worst case scenarios when analyzing the deal? Thank you.

0 Votes

Thank you. Interesting. I never thought to look there. I will. Much appreciated.

Quote from @Kristin Flores-Brockman:

Quote from @Sushil Iyer:

Thank you for the reply, @Kristin Flores-Brockman. Much appreciated. Can you please point me to some CREI networking groups in the DFW area? Is Meetup a good place to find them? Are there other/better places? Thank you.

Quote from @Kristin Flores-Brockman:

Hey Sushil

You've got the right idea. BP is a great place to start. Since you're looking at 5+, that is considered commercial, so I would seek out CREI networking groups. Still stay active in BP though because there is a lot of wisdom in this group.

When you say "is it proper etiquette to ask the seller's agent to share this info with us..." what info are you asking for specifically? However, I would still say definitely ask all the questions you have. If they want to make the sale, they'll provide the information, within reason.

Also, make sure you have a POF ready to go for when you submit your LOI.

I love analyzing commercial and investment properties. I am also located in Fort Worth. Reach out if you need any assistance.

Perhaps Meetup.com may be good, I've haven't searched there in years. However, I find a lot on Facebook and LinkedIn, believe it or not.

0 Votes

Dallas, Texas

Quote from @Kristin Flores-Brockman:

Hey Sushil

Also, make sure you have a POF ready to go for when you submit your LOI.

I love analyzing commercial and investment properties. I am also located in Fort Worth. Reach out if you need any assistance.

0 Votes

Dallas, Texas

Thank you for the feedback, @Wale Lawal. Much appreciated.

Quote from @Wale Lawal:

@Sushil Iyer

With my experience, to analyze properties effectively, you can start with resources like MLS listings, Crexi/Loopnet, tax assessor websites, or paid tools like Costar and Reonomy. Engage with property managers for insights on rents, expenses, or off-market opportunities, and request financial documents like rent rolls and profit/loss statements from sellers' agents as part of due diligence. If information is limited, use market-based assumptions to run a "worst-case" analysis. Enhance your multifamily investing knowledge through books, podcasts, networking, and consistent deal analysis. Focus on growth areas, understand local regulations, and use your rental history to build credibility with brokers and sellers.

Good luck!

0 Votes

Dallas, Texas

All Forum Posts by: Sushil Iyer

Sushil Iyer has started 5 posts and replied 36 times.

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Estimating expenses post-purchase

Post: Estimating expenses post-purchase

Post: Estimating expenses post-purchase

Post: New(ish) small multifamily investor looking to network and for guidance

Post: New(ish) small multifamily investor looking to network and for guidance

Post: New(ish) small multifamily investor looking to network and for guidance

Sushil Iyer has started 5 posts and replied 36 times.

Biggerpockets Logo Post: Is Killeen a good place to buy small multi-family rental?

Biggerpockets Logo Post: Is Killeen a good place to buy small multi-family rental?

Biggerpockets Logo Post: Is Killeen a good place to buy small multi-family rental?

Biggerpockets Logo Post: Is Killeen a good place to buy small multi-family rental?

Biggerpockets Logo Post: Estimating expenses post-purchase

Biggerpockets Logo Post: Estimating expenses post-purchase

Biggerpockets Logo Post: Estimating expenses post-purchase

Biggerpockets Logo Post: New(ish) small multifamily investor looking to network and for guidance

Biggerpockets Logo Post: New(ish) small multifamily investor looking to network and for guidance

Biggerpockets Logo Post: New(ish) small multifamily investor looking to network and for guidance

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Is Killeen a good place to buy small multi-family rental?

Post: Estimating expenses post-purchase

Post: Estimating expenses post-purchase

Post: Estimating expenses post-purchase

Post: New(ish) small multifamily investor looking to network and for guidance

Post: New(ish) small multifamily investor looking to network and for guidance

Post: New(ish) small multifamily investor looking to network and for guidance