All Forum Posts by: Taylor Shapiro

@Matt Burns, @Nicholas Ameluxen, @Suzanne Nelson, @JP A., @Benoit Malige - Hey everyone. Glad to hear you've all had positive experiences with their coaching program. The OP mentioned the cost is $10k, however, the only coaching programs I see are the Wheelbarrow Basic for $2k and the Wheelbarrow Pro for $5k. Has the price been reduced or is OP referring to a different program all together?

Which program had you all signed up for? 

@Michael C. Trippi wish I could tell ya! CT is keeping me busy at the moment. Buying 3 this week. Are you active in Worcester?

@Jeff Greenberg, "The other large expense is marketing. It is critical that you do it right and during the lease up window. Miss that, and you can be toast for the semester or year." I agree 100%. This is the main factor holding me back from moving forward. 

The building is directly across the street from the college. 

I appreciate the feedback. @Jeff Greenberg@Andrew Johnson@Casity Kao,  expenses are as follows:

Taxes: $14,758

Insurance: $6,834 (I was quoted at +/-$9k from my insurance people)

Gas: $8,000

Electric: $9,514

Water/Sewer: $2,352

Refuse: $1,991

Landscape/Snow: $2,003

Internet/Cable: $3,648

Contract Services: $7,642

Repairs/Maintenance: $14,614

Super/Cleaning: $6,507

Management Fee: $13,339 (6%)

Legal/Audit/Advertising: $3,700

Reserves: $2,700

Total: $89,960 (44% EGI)

Casity, I understand your skepticism. The broker is a younger guy but he's experienced. This is an off market deal that he presented to only a few of his "performers". The two other investors passed because it's "an entirely different business model". They're strictly apartment building investors and thought the management here would be too much. I don't have T12s at this time.  

Andrew, what do you think about those expenses? Jeff, I hit the wrong button. $36,000 instead of $34,000.

Hello all. I have an interesting deal I'd like to get your opinions on. A broker sent me an OM on an apartment building that was converted to student housing a few years ago. The owner's an older man with some health issues and is looking to sell off his portfolio. Even though this isn't your typical multifamily deal, the numbers appear too good to pass over. 

The building was originally 12 units, all 2/1s. They knocked down some walls and created 6 larger units which are now 4 BRs, 2 BAs. Students sign a 9 month lease for the school year at $8,500 and they fill the units with interns during the 3 summer months at $500/bed ($1500 for 3 months). 

9 month lease GOI: $204,000

3 month lease GOI: $34,000

Total GOI:          $240,000

The owner says he's been pushing for $600/month on the summer interns and $9,000/ 9 month lease with success but we'll stick to the numbers I have listed above for simplicity sake. 

Utilities, internet, and furniture are all included in the lease. 

At the moment, 21 of the 24 units are occupied. Annual expenses are listed at $89,000. Here's my quick breakdown of the numbers

GOI:                                     $240,000

Vacancy 15%:                     -$36,000

EGI:                                      $204,000

Expenses (added $10k):     -$100,000

NOI:                                     $104,000

After several conversations, the owners agreed to a sale price of roughly $800,000. At 4.5% interest, 25% down, amortized over 25 years, P/I would come to around $40,000/year. 

NOI:                                   $104,000

P/I:                                     -$40,000

Cashflow:                         $64,000

$64,000/$200,000 (25%) = 32% ROI

As you can see, the cashflow is tremendous... on paper. To make things even more enticing, other student housing units, depending on location and finish quality, range from $9,000 to $11,000 compared to the $8,500 this one rents for. Summer interns typically start at $600/month which the owner was able to charge this past season. My mentor, who's heavily invested in this market, seems to think I'd be able to charge those prices without issue.  

I'm looking for any feedback and insight from those who have experience with student housing. The fact that I'd be filling the building twice every year is a little daunting but the numbers look great. 

What should I be asking here? What am i overlooking? 

Hi @Charlie MacPherson, nice to hear from you. Proximity to "home" is a major attraction. I'll drive an hour south to New Haven County to check in on my projects. An hour North gets me to Holyoke, MA. Although I like to generally keep projects within a 45 min distance, 1 hour is do-able

Median home prices in Holyoke, Chicopee, Southwick, etc., are comparable to those that we purchase here ($175k-$225k). 

Hi all,

I've started looking into Hampden County and Southern Worcester County for potential rehab projects. I've spoken with a few agents in MA and CT who agree that Springfield might not be the best area to start rehabbing properties from afar, however, towns like Hampden, Chicopee, and Southwick are ideal.

Would any Mass investors or agents mind sharing your thoughts on these areas? Any wholesalers who have properties to sell? I have a team in Northern CT who are ready to take on more projects. 

Hi @Ken J., welcome to BP! New Haven rental market is strong but very expensive, especially around the university/hospital. Just make sure you sharpen your pencil when underwriting. There are deals to be had  

Thank you for the recommendations! 

Hi All, 

I have a house in New Haven County that needs a new boiler. Do you have an HVAC tech you'd be happy recommending?

Thanks!