All Forum Posts by: Tristan Scott Zell

Usually cap rats are used for commercial buildings 5 units and above. It's a investor sentiment metric used to determine what an investor will go for a certain income stream. On a two family a cap rate won't mean anything because it's based off comps at not it's NOI.

@Jim K. we looked in the basement and under the floor that was slopped and we noticed a bit of concrete that was tapered down starting from the middle of building. The foundation here is cinder blocks, though they might be on something older, not sure. It’s a 4 unit, I believe it was either two buildings attached or an addition added in the rear at some point. The back part is where there is slopping. I think that the foundation might be poor and there was some of the joist shrinking you are talking about. 

@Quincy Lockett Thats good to hear that it worked in your places, i'll give it a try now. there was sloping in my dads property and it hasn't been all that bad, but this one you can feel yourself walking up hill in some rooms. 

@Adam McQuiston Thats interesting, hopefully it isn't that, Ill have my contractor check it out. Thanks for sharing

@Scott Busby I agree with @Danielle Jackson seller financing is a good option. It is worth the shot asking for that from the seller, though if it’s on market then they probably would want to sell it without any special financing. In regards to the hard money, they usually want some skin in the game and a lot of value add. Would you be using the hard money as a down payment and using it until you refinance? Is this a paint and carpet rehab property or more than that? If you have some money to put in the deal than they may be interested if there is upside to protect themselves. I would talk to everyone you can and not assume anything. 

I would highly recommend talking to a real estate attorney that specializes in these things, they will help you with the proper structures to having investors in your deals. 

@Michael Swan 

Yeah it’s pretty noticeable, thanks for your input, I’ll consider that.

@Don Gouge 

It’s about a few degrees and it’s pretty even. It’s different in the all of the rooms in the apartment really. I had a tenant say that when you are in bed you are leaning to one side. 

I am remodeling an apartment in my building and for whatever reason the people that either built the place or remodeled it pitched the foundation. This has led to everything being visually/physically slanted inside of the apartment, I don't have any interest in going down to the foundation or studs to redo everything and have decided to just do what I can try to make it look better.  The problem that I am having is what type of flooring should I use for this space, since it is so slanted it will make using snap flooring hard. Is carpet a good option for a rental? I don't think it is but it may be the only option. Is there any flooring or solution that people would recommend that would work in this scenario that would make the apartment look good and desirable without it costing too much. Thanks. 

I would say that the markets that are usually blue collar, working class are good cash flow markets. They usually have a lot of rental housing which doesn’t appreciate as greatly as single family. This leads to better rent to price ratios and better cash flow. In Maine it’s the Lewiston auburn area as well as Augusta and Bangor areas. As well as some other ones. As for outside of Maine people have already mentioned sunbelt states.