All Forum Posts by: Toben B.

Property is B but surrounding population is growing nearly 3% a year in this suburb. There is no affordable housing nearby. 

Here are the number I was given. They look low, but I am used to duplexes.  Apparently water is included in rent. I am rounding to make it simpler

Gross income $158,000

Expenses------------------

Insurance        $11,500

Office                $400

Collections       $550

Cable               $2870

Property Tax   $7800

Repairs/maint $12,800

The expenses look a little low, but the owner is managing himself. 

The seller has provided me with a pro-forma. How do I get them to give me the actual P&L? I sent them proof of funds for a 20% deposit if we can come to terms on the price.

Rent roll is 24 units at an average price of $620.  3 buildings - 2 story with 8 units in each story. 

Demand for housing is very high in this suburb. Population growth is very high. 

How do I estimate the value of the apartments without the P&L? I have 5 duplexes now. If these were duplexes I could estimate the value quite easily.  Should a 24 unit apartment have similar or lower expenses to 12 duplexes?

Thanks!

Started at 34 with a duplex. 10 years later I have 5 duplexes and 5 houses. Had a quadplex that was a lot of work so I sold it for a 50k profit. Tried a flip that made no money. Interested in buying larger multi family properties now. 

Section 8 tenants are harder on properties and require more time than regular tenants. I have had many in the past. 

The ability to get above market rents is limited to bad areas. In my area a section 8 voucher is set on square footage and number of bedrooms. This leads to people going to the worst parts of town and loading in a lot of section 8 tenants. In the nice parts of town section 8 may be the same money for more work or less money than a regular tenant.  Also rougher section 8 tenants can scare away better tenants. 

The good news is the government always pays, the bad news is the tenants can be unstable. I have had multiple tenants lose their vouchers for various reasons.  I will admit I do not know how to screen section 8 and have reduced my numbers due to the headaches. However if you get $200 more a month and can screen well then go for it. 

I am going to make an offer on a 24 unit apartment complex. I had heard that 40 units was the smallest to consider. That being said I now have 17 units spread across duplexes, houses, and a quadplex.  I will need to use a manager on this one as it is about 45 minutes away and I have a full time job. 

How can I find someone to help me price the apartment complex. My experience with appraisers has led me to trust my own numbers over theirs. However I have never bought more than 4 units so I need a little help on this. 

Thanks in advance!

The way to appease your wife is to appear to level the playing field. Her position is wrong, but you are partners so you want to make her feel better.  

1. Start paying yourself a regular amount and put it in your bank account so she feels she is not the only breadwinner. $800-$1000 a week. Let her see the money coming in regularly. It doesn't make sense but it will help.Then take some of the leftover money in your bank account each month and plow them into new investments so you are still investing the same.  

2. Leave the house when she leaves every day.  Go check on a property, meet a realtor do anything, but don't let a day go by where she gets the impression you  are sitting at home when she is at work. Again this is appearances but it will make your wife feel better. 

3. Consider a day job that would help your business. Become a realtor, a property manager, a construction supervisor for other investors. 

I use these off amazon for $50 while renovating and showing the units.

https://www.amazon.com/gp/product/B008HNHAP0/ref=oh_aui_search_detailpage?ie=UTF8&psc=1

When the unit gets rented I put on a regular locks back on. 

2 co-tenants moved in together and both are on the lease. 

1 went to jail and the other tenant now has a restraining order against them.

Tenant with the restraining order wants the other off the lease. 

This is in Oklahoma.

How do I handle this legally? 

Hello,

We bought up several commercial lots next to our building several years ago and have received an offer from someone who is described on the internet as a builder. They sent us an offer with a 7 day expiration on it, which I know is a tactic to try to get a quick deal. They attached a 1 page appraisal which compares it to a few residential lots. 

Although I know how to do a rough value on apartments and houses, I need a guide on how to value commercial lots. We have about 2 acres with a single family home on it. The value is really in the land. 

This is one of the larger empty commercial lots very close to a highway, but just behind the main street. 

Prior to hiring an appraiser, how do I get a rough estimate of value?