All Forum Posts by: Trevor Burns

@ J Beard I appreciate your insight in the past few days. This particular property has been on the market for a year and the stated price has stayed the same so I know their price is likely off.

As I am new to the commercial market I understand there are certainly known unknowns for me in this new market. I know I am purchasing a new class C revenue stream. I also know and have a number in mind that that makes managing it worth the investment. The problem lies in that the stated price from the broker and the pp I have in mind are a ways off. I feel I need something to back up my need to lower the advertised PP by 15-20%

I have my eye on at a 6 unit property in my smaller town of 30k people. How do I estabish a good CAP rate for an area when no similar properties have sold recently?

Should I just make the numbers fit what works for me?

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I am looking at a 6 unit property. With price per unit @60k. I am currently evaluating a monthly cash flow of $1300. Is it wishful thinking to expect a good investment to cash flow 1/3 of gross rents to fully cover a 2 unit vacancy should that ever happen?

@ J Beard Thanks I will see if that helps my numbers. Am I wrong to push toward $2k/mo cash flow to cover a 1/3 vacancy on this property?

What should I expect for Cap rate c class multi-family in Fairbanks, AK? I am trying to set my value for a 6 unit property that should rent for $6000-6900 but is currently only renting around $4900 as one of the unit is getting remodeling. The property has been well cared for but under managed for some time. It has a long history of a least one unit vacant in the past few years(not market driven). The building was new in 1975 and has some updated throughout but it does not show as new and current. Boiler is around 12 years old. Owner is open the lease option or owner finance. -I am calculating cap rate at 10.5% -Cash flow $1300ish (rent dependent proforma) -utilities avg $1000-2000 throughout the year -asking price is $365k

Tongue and groove vinyl plank is the wave of the future for commercial properties and last a long time. In addition it is easily fixed. Nearly idiot proof to install.

@Andrey Y. Fairbanks has a roughly 100k people in the area but it feels much smaller. Local military bases and transient nature of the work force up here lends to good potential for creative buy and hold investors.