All Forum Posts by: Tyrone Dennis

I am glad to have come across this topic.

Seeking similar information.  

It appears Syndication Pro, Ground Breaker and Juniper keep coming up in this thread.

Darion, Adam and Colin, I'm a twin cities guy as well.

DM me on the networking topic regarding MF.

I'm in the Twin Cities.  Bruce Runn I like your outlook and insight on this matter.

Thanks for sharing.

Thinking Outloud here...

Use a LLC with flow-thru taxation (not S-Corp taxation).

Give your company a loan which is the HELOC.

Pay HELOC back (loan is an expense for the company).

Interest on HELOC is deductible.

To figure out Cap rates you'd need access to sale data.  Maybe a local broker with access to Costar, Reonomy or some database would help, or if they personally track the info...they might be willing to help you out.  

Just because it is a class C property does not mean it is crime ridden, it just means its an old property.  The demographic (tenant base) dictates how hard to collect rent is.

Look at it this way:

$450 x 9 units = 4050 x 12 months  = $48,600 Gross Revenue (assuming you don't make money from storage, laundry, garages...)

$48,600 - (45% expenses) = $48,600 = $26,730 NOI

Debt is probably 4.5%, 25 yr amortization (estimate)

Cost of $535k at 25% down ($133,750 down)

401,250 loan = $2,230.27 monthly interest and principal..

NOI = 26,730...Cap Rate of 5% ish

YEARLY DEBT SERVICE = 26,763...

Means no cash flow

Even at a 4% interest rate this deal doesn't work.

Depends on how active you want to be in seeking out an investment.  You could look on Loopnet and Crexi.  Off market deals tend to be better deals, but working with a real estate broker as a buyer does not cost you anything other than maybe a signature on an exclusive representation agreement.  That could be your quickest way to get into one of the markets you desire.