All Forum Posts by: Michael T.

Chris, did you ever find a good PM company to manage this, looking for a similar PM to interview when I am in Houston next month.

Between 20 and 50 units Class B and C in the suburbs of Katy, Sugar Land/Stafford, and Champions West.

Need a reputable PM company that has proven experience management multi-family properties in Houston area. Anyone that has a strong recommendation please send me a private message. Looking for hign integrity companies that have been in the business for decades.

The 50% rule is based on full rental income potential, therefore 60x725= 43,473x 12= 521,676/ 50%= 260,838- 114,000 Debt service= 146,838/ 400,000 cash in = 37% cash on cash return. Those numbers rarely show up without significant repairs or deferred maintenance, be sure and get a contractor to do a thorough run through and get estimates which you can use to negotiate the price down. Remember, the market is more important than the properties, if market comps and macro economic #'s are not there be careful.

We can go up to 300k but are really needing more discussion on financing options as the mortgage brokers we have talked too do not seem to know what to do with us given traditional US resident documentation is not applicable. We have a few conference calls this week to discuss and have higher hopes for a few that are saying they specialize in foreign investor financing.

Thanks Joel, we are going through the due diligence now with the seller to answer those issues you raised, being overseas investors we don't seem to be making progress on the financing options. The condo conversion is an attractive exit strategy and thanks for the advice on how that could work.

Anyone have advise as to how overseas investors could finance this project?

Have used similar numbers to other properties even though the numbers provided were lower in every expense category. Wanted to get feedback on these numbers and then once verified can be surprised on the upside with the offer. Can't see an offer more than 800-825k at this point.

The actuals provided are much higher, I just used more conservative estimates on both income and expenses. Proforma GOI is 187,200 (24x $650 avg) and expenses were 50,425. I have moved everything to my averages. Insurance was a guess but higher than provided.

Just wanted to add a few details;

24 units each 2 bed, 2 bath, total of 25,920 sq ft or 1,080 for each

Rent average $625-$690 per month.

Fairly stable property, would be looking at a long-term hold. I have been really conservative with the numbers and have assumed no increase in rent or occupancy in addition have increased expenses from actual to reflect other property averages. It does meet my cap rate criteria of 10% and 20% cash on cash return. Any thoughts?

Have found a property that meets my area economic criteria, net population increase, strong employment growth, slowdown in building permits, higher than average income. Would appreciate any advice on the below numbers in order to estimate an offer price.

Listed price- 1.1 million

GOI- 165,600

Expenses-

Taxes 15,300

PM 15,800

Vacancy 9,400

Repairs & Maint 6,000

Utilities 2,300

Insurance 3,200

Reserves 3,800

General Admin 1,800

Marketing 1,000

Expenses- 58,600

NOI- 107,000

Occupancy- 83%

Built- 1997, no deferred maintenance

Have a contractor visiting the site next week and should have all the income and expenses verified about that time. Any thoughts on offer or issues. Will be looking to put 35% down and secure 715k loan at 5%.