All Forum Posts by: Siva T.

Isaac - I own rental properties in DFW market and live in Frisco. My 2 cents. From what I have seen and heard from property managers I work with, 4plexes attract a less than desirable tenants. Just to I am not misunderstood. This is only compared to tenants that seek Duplexes & SFRs. Also when there are a bunch of 4plex buildings together and each building is owned by different investors, you have less control on what is happening around you - they may have lax tenant vetting guidelines etc. I would be glad to elaborate if you need more. Good luck!

@Brandon G.  DFW MF sellers' expectations have gone up. Hedge funds and big money have scooped up a whole bunch of inventory. One has to really sweat it to find deals. Multiple bids right after listing are common now. Analysts forecast excess inventory of class A units in DFW in 2015 due to completions of new construction. 

@Brandon Hicks Thanks for the info.

Please let me know if you have read and / or have any feedback on this book: 

Confessions of a Real Estate Entrepreneur: What It Takes to Win in High-Stakes Commercial Real Estate Paperback by James A. Randel

Thanks, Siva

Interesting that many of you are able to charge 1.5X monthly rent as deposit. Probably it is the norm in those markets. For the 1 BRs that I had to lease, initially I asked for $ 650 rent and 1 month deposit. There were lot of inquiries and viewings - this went on for two months but no unit was rented (3 were vacant). I realized that my target renters liked the units but were struggling to come up with $ 1300 to move in. Then I tweaked it a bit - $ 150 off for first month rent and $ 500 deposit. Now all units are rented and I have a waiting list of qualified tenants. I had to weigh the rent loss due to prolonged vacancy against the probability of having less deposit to recoup major damages. I am at peace with the decision.

Marc,

What is the loan size? Of the larger banks, Wells Fargo and BB&T have loan products starting at $ 250 k for small apartments. Small local banks with only a hand full of branches  are even better options as they can be flexible on terms. 

Siva T

@Joe Fairless The property is in Dallas metro

It was built in 2000,  in good condition and in a good neighborhood.

Joel - This is a 10 unit apartment complex.

I am looking for good insurance agents who can help with commercial property insurance for a small apartment complex. Appreciate any and all pointers.