All Forum Posts by: William Goolsby

Jeff, I sent you an email yesterday.

Arsen, I sent you an updated email with attachments not long ago.

Ernesto, I will shoot you over some info. ASAP.

I have two 16-unit Multifamily properties under contract in Lawton, OK.  The asking price is  $1,060,000 for both properties together.  The buildings are only one block from each other, so they can be advertised for lease as one complex of 32 units.  The total square footage is approximately 32,000 sq. ft, since the average unit size is about 1,000 sq. ft.  Each 2-story, 16-unit property is in one building, and therefore each is under one roof.  All units are 2-Bedroom, 1-Bath, and all have washer/dryer hookups. They were built by the same contractor, one in 2009 and the other in 2011.  The Seller is willing to finance $200,000 of the purchase price (with excellent terms)!

The roofs, exterior, grounds, and parking lot are in great condition. Some deferred maintenance is needed on some of the interiors, yet nothing significant.  The units are all electric (no gas), and the tenants pay their own electric expenses. The Seller currently pays the water, sewer, and cable bills, which could be at least partially recovered by instituting a RUBS.  

• Lawton, OK is home to Fort Sill, one of the U.S. Army's major training facilities.  There are evidently plans to add 5,000 more troops to the base in the near future.  Cameron University, a state university, is also located in Lawton, and is about 1/2 mile from the properties.  The town also has one of the largest Goodyear manufacturing plants in the U.S.  One of the biggest attractions to the area is the Wichita Mountain Wildlife Refuge, a great area for hiking and sightseeing.

• The 2017 NOI for both properties together (supplied by the Seller) is $99,042 with a cap rate of 9.34%.  The price per unit is $33,125 for properties that are only 7 and 9 years old!   Please contact William Goolsby at (214) 460-9615 or by email at [email protected] with any questions or to discuss the deal.

Hello @Vic Reddy, and Wow!  That's an incredible quote for 106 units!  It's only $33 per unit.  I definitely haven't found that, but I certainly need to call them when I get a Dallas area property under contract.  I agree that it's vital to inspect all units to know what needs to be repaired and/or what capital expenses may need to be budgeted.  Thank you for your information and input.

Hey @Brad Sumrok, I appreciate you giving your breakdown of what may be needed for inspection and giving a general cost of doing it.  I believe going forward, there's a good chance I will get contractors involved vs. inspectors, for the very reason you mentioned of getting cost estimates for repairs or changes.  Thanks again.  

Hey @John Plumstead, thanks for chiming in.  I sent you a PM as well.  The PM Co. I’ll be using is a group out of OKC called Real Property Management Enterprises.  They seem to be very knowledgeable and experienced, and I’m looking forward to the relationship with them.  They also manage another 72-Unit property there in Lawton.

Thank you, @Darrin Gross, I appreciate your thoughts on this.  You make some good points, and it gives me more to consider as I make my determination for this Friday.

Thank you, @Deborah Burian, I appreciate your input and advice.  What do you typically pay your plumber and electrician to provide that service?  We have 32 units to inspect.

@Gino Barbaro, thanks for your help.

Thanks, @Gino Barbaro.  I'll definitely check around more.  What he told me is that when he has inspected apartment units previously, he has checked all of the electrical, including all the outlets, pulls the breaker box, checks every aspect of plumbing, heating, air conditioning, attics, roof, foundation, ventilation, shelves, cabinets, appliances, etc.; basically, everything for your typical home inspection.  So you believe to check 32 units (16 in each building, one block away from each other- total of 33,000 sq. ft.) should only take 4-5 hours total?  Do you have your guy(s) check all of that in each unit, or do you have them just check a few key things?  What do you think the ballpark range should be for the 32 units?  Sorry for all of the questions, but I appreciate you.

Thanks @Dylan B., I appreciate your opinion. The properties are in Lawton, close to Cameron University.  And yes, I already have a good PM team lined up.

@Cesar Egas, thank you for your insight.

@Joseph Abbott, thank you, and I agree with you that it’s very important to check out all units by someone.  And hopefully, some of the tenants will be there when we visit to meet them and discuss any issues (and ask about their lease and security deposit). 

Hey @Gino Barbaro, thank you for responding.  OK, since you believe all units need to be evaluated by a licensed inspector, what would you or could I expect to pay per unit to do this?  The guy I’m talking to in Lawton wants $250/unit, and he says it will take about 2 hours to check each unit.  He must be very thorough, but it seems high to me, since each unit is only around 1,000 sq. ft.  What do you guys pay?

Yeah Cesar, we’ve  already analyzed all the numbers thoroughly, which is why we offered and are now under contract.  We’re making a site visit next Friday (2/16), and I’m trying to coordinate the inspector.  We’re just trying to determine how many units we’re going to have him evaluate.  My partners and I are checking all 32 of them, though.