All Forum Posts by: Toure Lee

I live in Pontiac and have a lead on a nice off-market 3 bedroom 2 bath home on a quiet street.

@Account Closed What is meant by "each new owner recapitalize the assent/property extending the economic life of the building"?  Thanks

Thanks @Account Closed! You have confirmed what I was thinking. The current owner is retaining some of the units and one has already been sold to a third party. The only upside then would be to rent the existing units at higher rents but the HOA may not be accountable to me. I would have to check the bylaws to confirm. I currently own condos in another development and I can elect board members for the association. I think I'll keep looking for a smaller multi-family!

Hello everyone,

If an apartment building has been converted to condos and the HOA ownership is retained by the seller, the buyer of the property (the package of converted units) earns money by raising rents or by parting out the units for sale. If the rents are under market, raising them does not increase the property value because each condo has its own parcel ID-correct? I havent seen any appraisal info or comps from the seller for the individual units. Just trying to figure out if there's an opportunity with this particular property. NOI=131K. CAP=7.5. The gas and water are paid by the HOA. Welcome any comments on how to analyze this property.

Hello Andrew, I think you should have something in the analysis for maintenance and repairs.

Hello Ari!  Welcome to BP.  I am looking for my first apartment building deal--10-12 units.  So far, I've just focused on single family homes.

What's the most important lesson you've learned from doing apartment building deals with investors?

Hello Ido,  I think you picked a great area!  You might try driving through neighborhoods in Royal Oak looking for homes that need a bit of work.  You could then mail the owner to see if they are interested in selling.  There's alot of information on BP about methods to find deals but this is one I do.  It also helps me to learn the neighborhood.  Sometimes I get out of my car and walk and talk to neighbors of houses I'm interested in buying.  Neighbors poorly maintained or foreclosed houses always want to see these houses improved.

Do you have funding or are you looking for funding?

Thanks @Rick H.!  I have a real estate attorney I've worked with in the past.  The properties are in a popular vacation town in Northern Michigan but are more suitable for long term rentals vs. vacation rentals.  As I mention above, I would like to wholesale them and use the cash for my apartment building purchase.

I started a new thread on buying property in probate @Rick H.

Originally posted by @Toure Lee:

There's a seller whose properties never went through probate. Mom and dad passed away without a clear will and there are several siblings. The seller wants to dispose of the properties--a headache--and the siblings want to sell as well. What are the steps required for the seller I'm working with to get a clear title? About how much should this cost in attorney fees? Are federal/state taxes due as a result of the title transfer? Just trying to understand if I should even get involved in this. I was thinking to to work with the seller and get the properties under contract and then wholesale them. They're both rented and in good shape with some recent improvements.