All Forum Posts by: Victor Zeytin

Hi everyone, I wanted to check on something with the experts here. Specifically, I wanted to check what the tax advantages or possibe tax abatements available to developers building 100% low income, section 8 housing in Los Angeles county. I was checking to see if there was possible property tax or other advantages for a ground up development like this. 

Thank you

I agree but that would take a lot of time and legwork to accumulate the necessary data for MSAs in like 10 states that we're looking for.

Hi everyone, I'm wondering where I can get statistics as to the number of units under construction at specific MSAs, what the percentage that makes up in that market etc. I have bits and pieces from different sources but it would be nice to have that in one handy location. Anyone know where that can be found?

TIA

For the past few years, due to the very strong demand and competition for MF RE, most buyers have had to purchase based on proforma numbers. The numbers based on current financials don't pencil out in other words but only after year 1 or so at a point in time in the future. This was sort of reasonable based on rents that were screaming higher every year.

The current climate has changed quite a bit Rent growth seems to have plateaued in many markets. Some have even had a very slight drop in rents. The economic situation is starting to worsen and rents are at an all time high in many markets. Consumers are already paying 25%-33% of their income on housing in hot markets. It seems to me that depending on proforma numbers now making assumptions of rent growth don't make a whole lot of sense at this point in time.

My question to buyers in the market currently is whether you're still using proforma numbers to acquire properties? If so, are you still making assumptions of rent growth in the near to mid term? I'd love to hear your thinking and input.

TYIA

 Can you elaborate a bit more? 

Hey everyone, I was looking for insight into the Nashville MSA. I'm looking at the southern part of this market not Nashville city itself. What are the current cap trading ranges for class B,C properties in Murfreesboro for example? It's a bit of a difficult situation these days because debt servicing has gone up quite a bit in the past few months and landlords are still trying to sell based on valuations from 3-4 months ago where the financing environment was completely different..

Thank you v much for your help

Hi everyone, I’m interested in the Tampa market, specifically North Tampa. I was wondering what the current market conditions are in this market, what ranges of cap rates are currently traded and as much information as I can possibly get. It seems like central and northern Tampa are almost completely detached from the south side of the dirty. The rents are much lower, and it doesn’t seem to be as strong in terms of appreciation potential etc. 

any information appreciated.

Originally posted by @Account Closed:

Originally posted by @Victor Zeytin:

Also, I'm seeing expenses at 27%. Is that correct and if so, do you think 27% is realistic for an LA property especially since most are 70s and 60s constructions.

 You are right, again, and know what you are talking about. I made a mistake and put 19,000 for property taxes when it should have been $29,000 and I made the corrections earlier this morning. If you have anything you would like to add for calculations let me know. If you would like a copy of the software send me a PM. I appreciate your help and am developing a software system I hope more brokers and investors will use. I think the 33% for expenses is adequate since the buyert is getting a loan for an additional $300,000 and since he is a friend, contractor and his new building is only 1 mile from my office I do most of his work for my cost and he takes care of me (I hope) when hot deals come along and he helps to crunch the numbers and never pushes me to buy a property.

Thank you very much.

 That's a more accurate figure IMO. I'd love to have the application, I'll PM shortly.

I think though that the majority of investors here calculate a minimum of 40% for operating expenses. In fact, it's at 50% most of the time. This obviously depends on the age and condition of the property. A class A property will come in lower and a Class C, D at the higher numbers. Today I spoke to an owner of a 30+ unit property and his expenses came in at 60% because it was a building constructed in the late 30s.

Also, I'm seeing expenses at 27%. Is that correct and if so, do you think 27% is realistic for an LA property especially since most are 70s and 60s constructions.