All Forum Posts by: Jeff Jenkins

I'm an aspiring multifamily investor in Houston, but the market is too hot right now.  Most properties are selling well above values that cashflow.  It's crazy!

Anyone have an idea when this market could present more opportunity, and what do you recommend I be doing in the meantime?  

I'm currently negotiating a single family with the following figures:

(-40% unrealized capital gain)

20% cash on cash return

$26K out of pocket

I plan to rent this property out for 3-5 years. My goal is to invest for cashflow, but a negative unrealized capital gain is concerning. BP community, what are your thoughts?

It seems most lenders are only providing 20-30 year amortized loans with either a 5,7, or 10 year balloon, and most of which have prepayment penalties. What is the exit strategy under these circumstances?

I was under the impression it would have been a straight 25-30 year amortization with no balloon or penalties.

The goal with my first property is to buy stabilized, and then sell or refinance after 2-3 years, pay back the original loan and become a more credible lender with the potential to do more lucrative deals.

Hey BP!

Can anyone recommend a few multi-family lenders in the Houston area?

Thanks,

Jeff

Hey BP!

What's a simple way of determining a desirable submarket for multi-family investing? For example, I plan to invest in Houston, but am uncertain as to which submarkets are ideal. Is it simply speculated supply and demand, or is there a simpler approach?

Thanks!

Jeff

Sorry, but I also failed to mention this is regarding apartment complexes, not sfh's.

Sorry, failed to mention I'm in Texas.

Hey BP,

I have heard in the past to avoid properties with window units (no central A/C). What are the thoughts of the community?

Thanks,

Jeff

Is there a general rule of thumb to determine a closing cost estimate for multi family deals?

Does any one have a recommendation for screening multi family / apartment deals by year built or age? I notice that several of the deals on Loopnet.com are older properties.