All Forum Posts by: Tony Mai

@Dennis M.

I agree Dennis, I would never buy if there was not an upside.  Here is what the property can do if operated at 100% efficiency. 

Its a little hard to tell if this is good or not considering the lack of growth.  But there is potential since the property has not been previously managed well.  Any thoughts or insight with the new information?

@Matt Popilek

Thanks for the insight.  It is a 9 unit all 1bed/1bath units.  Only 3units have lease.  All the other 6 underperforming units are month to month.  7/9 have deposits.  My plan is to raise all rents up to market as soon as we close and have all units at 9/9 with deposits at market rents.  Potentially they can rent for $650 but in the condition it is in, $500 is conservative, $550 is very do able.  

Here's my projections at $550/unitX9units 

https://www.biggerpockets.com/calculators/shared/670648/6652d312-c6e0-4ed9-ae1e-6c67df1426fc

Since they are 1bd/1bath and the are is a "c" the turn over may be high.  So it is risky, I am 2-3 vacancy from negative cash flow.  I suppose the question is, is the cash flow worth the risk? Should this deal be passed over for something better? 

This property is currently operating at these numbers. The upside is rents can be raised to market rate of $550 and conservatively $500. It’s been mismanaged. The area is a solid “C” between “c-“and “b-“ area. My plan is go in put in professional management, repair, raise rents. Increase value and maybe hold or refi out. My concern is the area. It has always been a C area and other parts of the city is growning I don’t see as much growth in this area. However there is potential to increase value and make money here. Would you do this deal? Are numbers about right? Is it worth the risk? Any strategies or insights negative or positive is welcomed and helpful. Thank you in advance!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This property is currently operating at these numbers. The upside is rents can be raised to market rate of $550  and conservatively $500.  It’s been mismanaged.  The area is a solid “C” between “c-“and “b-“ area.  My plan is go in put in professional management, repair, raise rents.  Increase value and maybe hold or refi out.  My concern is the area.  It has always been a C area and other parts of the city is growning I don’t see as much growth in this area.  However there is potential to increase value and make money here.  Would you do this deal? Are numbers about right? Is it worth the risk? Any strategies or insights negative or positive is welcomed and helpful. Thank you in advance! 

View report

*This link comes directly from our calculators, based on information input by the member who posted.