All Forum Posts by: Rashad H.

Thank you for your suggestion.

Yes its a bar and grill with a 4br over the top

Wow. Thanks for all the feedback so far. 

The Zip code is 15025.

I considered selling but with my lack of experience in real estate and no major financial options besides saving it would be a waste. I get a max of 64k. I profit is capped and i would end spending that on taxes ans trying to find a new deal.  

I believe in buy and hold. If it wasnt for that i would have no significant entry into this business with only 1000 dollars. My grandfather purchased the place well over 30 years ago. And its seen its profitable days. I believe it still has more. Especially in such a small town.

Besides I can make the tax payments myself. I considered closing the bar  and grill but then we would lose the liquor license which is nearly as valuable as the place itself. 

Given the situation im leaning towards leasing the whole place the a property management. But where to start?

I have recently inherited a commercial property on the suburbs of Pittsburgh, Pa. ( Think DC/ Baltimore pre-gentrification circa 1990-2000). 

This is the town by the numbers:

POPULATION 16K ( Half being married )

-11 % POPULATION GROWTH SINCE 1990

AVG AGE 40

MOST ARE WORKING CLASS MEDIAN INCOME 43K

5300 HOMES OWNED

1700 HOMES RENTED

1000 HOMES VACANT

ASKING PRICES FOR HOMES: 50-75k

AVG RENT FOR 2 B1 BA: 695

Its a commercial building consists of a longstanding bar and grill my family has maintained the first level and a 4br 1bath apartment on the second floor. The building is owned outright. I will be responsible for the taxes as well as all the other expenses. 

Issues:

- I have 1000 dollars in capital and no idea where to start for financing. I was wondering if it is possible to use the equity in the building in order to get repaired. Land and building valued at 64K.

-The bar and grill is barely breaking even and the apartment is vacant.

- The Fire escape in the back needs a complete overhaul. Still waiting for feed back on the cost of repair.

- The building shares one utility line for heat eletric and gas.

I have strategies so far: 

1. Rehab the whole place and Lease the whole buillding using a property management company.

2. Rehab the apartment first which only needs cleaning and repairing the Fire Escape, Then rent it out at 725 to generate immediate cash flow. 

Im still waiting for the utility bills and looking into what type of insurance I would need. I know the taxes are 1000 a year.

Any feed back is awesome.

Thanks 

Hi,

This is great place to meet people and for discussions. Also if you have questons they have an awesome how to section. Locally, Check out Florida Real estate investors meetings. There quite a few in Miami. Good Luck! 

Thanks everyone for your response. I know it seems a stretch however it is still America. And we're not talking anywhere. We're talking South Florida one of most sought out locations in the world. I can understand the hesitation if I said Knome, Alaska.  

My main goal is large scale commercial properties.  I believe the best starting point or triplex duplex and 5 units. Single-family homes are very competitive and generally over priced in my market due to the high amount of cash buyers, tourism, and foreign investors. Small multi units in less attractive areas and conditions provide better revenue streams. 

Ex: Why 250,000 for a single-family home 3b/2ba on average that tops out at 1800 a month with 1 occupant when I can pay 125000 or less for a duplex with rent starting at 650 with 2 occupants.  

That same 250k can get 2 properties with more income than one single-family home. (I am not intent on living in the properties I purchase, rehabbing,  or wholesaling.) This for long-term investing so reahabbing and wholesaling are out given their nature of capping income at the point of sale and increased pressure on fast closings. 

I just need to repeat the process 10 times. Not its saying simple, however its highly possible with the conditions in this market.

I can go into detail about the additional million plus people moving to the area, the light rail construction,  and other factors but thats another topic.

Same goes with the "trophy numbers". The smaller units are strong earners so are the SFH when in the right areas. I thought to forgo the single family homes but I think it would be too large of a jump to go to large apartment buildings, unless someone could educate me otherwise.

Looks like the take away is focus on the small units first. I'll let you know how its going.

Below is my long term game plan/ strategy to financial freedom.  Please tear this idea apart and let me know what can be improved.

-Purchase a combination of small rental units 3 to 10 unit buildings.  10 units over the next year to cash flow. 

-Purchase 3-5 SFH in high demand communities like Weston, Boca Raton, etc.

- Purchase my first large scale Apartment building.  Avg 80+ units and mid level hotel cap 6 % and better. I will take a a lower cap rate for better property in a place the ones i mentioned before. The intent is to buy and hold. 

- Lastly purchase vaction rentals. Im thinking A1A. Possibly Condos but definitely HOMES. 

Of course if I can find flip or rehab along qith way I will.

I'm looking to complete this in 7 years or less.

A good deal is a good deal. 

Seems like many people are saying the same thing. However, I'm on the other side. For most people to look at a deal it needs to be at least 30000 dollars profit or more not including the investment. Maybe its the type of deals people are looking to acquire. I come across smaller profit deals often enough. I'll take 10 deals that net 3k just quick as one that nets 30k. 

A good deal is a good deal. 

Thanks for the support.

Rashad H.

Simply put design marketing and research power. Landing pages for lead capture, Local search engine traffic for the website, email campaigns with a keen ability to focus and find specific information in a very short amount of time. Basically anything online and media marketing related I can do.

I have financial backing cash and otherwise as well as a of connections from high-end semi precious counter top dealers to general contractors and lawyers to private capital investors. In short, I've developed relationships with a wide variety of people to accomplish tasks. I've lived in Boca for ten years so I'm familiar with the area.  I just need the proper deal not some scam or over priced realtor looking for a win.