All Forum Posts by: Syed H.

Electric baseboard is fine if that is the market. Also depends on your markets weather and cost of electricity. In my market it'll get expensive in the winter, but it depends on how warm people keep it. I had one tenant who keeps it boiling hot and would leave it on 24/7, she pays $300-$400/month. But most of my other tenants who are reasonable pay much less. 

$100-$150/month on average is reasonable IMO. 

Oh I totally agree. My #1 priority is guarantee of closing. I already have that with my existing HML. He just closed on a deal for me in 4 days because a new bank I was trying out fell through.

Thats not too bad of a rate. I pay between 8.5-9.5% with no points depending on leverage and quality of the deal. 

What are their rates roughly? 

I've qualified as a top tier borrower for some of their competitors but still the national guys seem expensive to me. They haven't been able to beat 2 of our local HML's.

I own/manage a 21 unit portfolio in Allentown, while being out of state. I live in NY. I visit Allentown once a month. Even if you couldn't manage it yourself, you could pay a PM just like you would in Kansas, etc. If you have any questions, shoot me your # and we can talk. I'd rather invest right in your backyard rather than oos if I were you. 

 You live in Allentown? Or near it? 

I don’t see why you would go so far away when you have a great rental market right there. 

Usually because its more lucrative to be in the GP than the LP. 

Congrats OP!

Don’t build for your first project unless you have actual experience building for a developer at a high level.

Everyone has different ways of looking at things. For many of us, yes. You can also make it easier on yourself by giving more responsibility to your family or employees. Or just 1031 into a NNN

Here in NYC, many of the families in RE like to say they will “swap until they drop”. I’ve met more 60+ year old owners than under lol.

Even if depreciation runs out, they still usually have a very high cash flowing property because they have debt paid down and have had 30 years of rent growth. 

Both. 

There's no perfect answer here. You should analyze it based on what the realistic maximum NOI is and what the current in place is. If the current in place is something ridiculously low, you should anticipate paying 4-6 months of vacancy so you can turn the building.

In markets like Trenton, you will find a lot of beaten up properties. Tons of deferred maintenance. And too many slumlords. Slumlords usually charge a lot less because their buildings are in horrendous condition. 

Don’t underestimate the renovation costs. Thinking your going to turn units and bring them up to market for $2-5k/unit is unrealistic. 

Also be realistic about your rent projections. I’m always conservative with my rent projections when I’m turning a building or doing a vacant deal. 

I pay 7-9 % plus 50/50 or 9-11% with no equity split.