All Forum Posts by: Tri Le

Hi Chin, 

You definitely brought up a good point.  I didn't elaborate on my other metrics, but I'm shooting for a 10% cap rate and around 35-60k per door.  I'm willing to buy a 7 or 8% cap with some value add to get to 10%.  However, these numbers are just a starting point.  Location would be an important metric for me as well.  

Depending on the deal, it will affect funding (ie seller finance, conventional loan, private lending, hard money etc).  In my limited experience, the funding isn't too much of a barrier as long as the numbers on the deal work.  

The 30 day and 60 day deadlines are to instill a sense of urgency.  Also, it helps me break down the 3 year vision down to a managable timeline.  

A wise man once said, "No risk it, no bisquit."

I feel you Eric.  Let's partner up and take down this 104 unit apartment in Louisville.  The taxes can't be much worse. :)

Thank you Mike and Eric for you comments!  

I'm looking in the Cincinnati area. This is where I have the infrastructure to manage the apartments. Of the listed members of the team, I still need a CRE mentor, CRE lender, and CRE broker.

The 4 plex is the closest property in my portfolio to an apartment.   It's provided a glimpse of apartment building investing, but I'm sure that there are factors of scale that make larger apartments different.  

Although 50 SFH can have advantages, it doesn't fit into my long term thesis or vision map. If I had 50 SFHs, I'd probably be looking to trade up to a large apartment. I'm buying a condo from a landlord with 40 houses, and he seemed stressed.

Based on the feedback so far, I'm setting an action step to talk to 5 brokers in the Cincinnati area within the next 2 weeks, and I'm going to leverage my current network to find someone already investing in apartment buildings and set up a virtual meeting.  

Keep it up guys! Thank you for the support!

The universe works so mysteriously.  I posted this challenge without seeing that Brandon and David interviewed Cameron Herold, author of Vivid Vision.  Listening to it now!  

Keep the comments coming.  Thank you in advance!

Hi Tesho and George,

I love the comments!  I'll add finding a mentor.

In regards to aggregating/consolidating units, I definitely see the advantage of having fewer units to manage and higher cash flow.  This is a very good point.  This works if the plan were to stop at $10k/mo cashflow.  50 doors is the first milestone to 1000 doors.

Hi BP,

I figured I would appeal to the collective intelligence of my fellow investors.  

Over the last 2 years, I've built a small portfolio of single family houses, duplex, triplex, and 4plexes.  We have done BRRRs, major rehabs, short term, and long term rentals.  

After reading Vivid Vision (Great book!  Highly recommend!), I have come to the conclusion that I would like to focus my energies on scaling our business.

I have set a goal for myself to reach 50 doors in 3 years.  If the average cash flow per unit is $200, I will be financially free.  

Although there are many avenues (ie Mobile Homes, Assisted Living, etc.), I want to narrow my focus towards the purchase of a 40 unit apartment building or a combination of two 20 unit apartment buildings.  

The next step is to make a plan for the following:  

1. Finding the deal

2. then, find the lending/financing (This can be a combo of commercial lending, line of credit, private lending etc)

BP, help me develop this plan and any input is much appreciated.  We only have 30 days to organize a plan and 60 days to put the first offer!

Humbly,

Tri

  

Hi BP, 

I was hoping if someone could help provide insight into a situation we encountered on the recent purchase of a house.  

We closed July 31st and had an inspection June 23rd.  We moved in on August 26th.

The sellers did not disclose any termite damage, prior knowledge of termite damage, or  prior treatment for termite damage.  The inspector also did not mention any signs of prior termite damage.

When we moved in, we discovered the floors were uneven and promptly had this re-inspected.  The foundation specialist and pest control people said there was extensive termite damage and this had been present for many years.  They both suggested that the inspector missed this on his inspection.  Cost to repair will be approximately $7,000-10,000.

Note, we have already closed.  

We contacted my realtor who called the sellers, and he did find out that they knew about the damage/prior treatments, but did not disclose this on the disclosure form.

Legal action against the seller and the inspector is a consideration, but it may not be worth the effort as legal fees may exceed the value of litigation.

Although the cost to repair the damage is affordable, and we are likely to repair the damage without pursuing litigation, I am curious to hear of other homeowners/investor's experiences.

Thank you!

If you are able to make this a Zoom or Skype Event, then I am in.  

Hi Everyone,

I am renovating a 6 bed 5 bath house in Cincinnati.  Initially, we were going to convert this into a duplex, but city zoning prohibited the conversion.  I'm thinking of ways to pivot, and I am interested in turning it into a special needs group home/assisted living.

Are there organizations that rent space from homeowners for this purpose?  I am looking for a company that will run this group home, and I would be the owner.

I'm currently zoned for a multifamily.  Do I need to rezone to commercial?

Can anyone think of any other pitfalls or noteworthy recommendations?

Thank you as always BP!

Great!  Thank you Megan!