All Forum Posts by: Johnny P.

I agree with John, if you're thinking about buying the apt, make sure you calculate atleast 50% expenses.

Also, how do you plan on managing this property in a Class D area, sounds pretty rough to me, are you going to do it yourself?

How are the rents in relationship to the market, is there room to bump the rents, or are they at market.

Who is going to do the minor repairs to the building? Is there a handyman on site? Will you be doing this yourself also?

Do you have time to be at this property every day?

Here's what my offer would be - based on current cap rates in FL and what apartments are trading for in C-D class areas over here

23k x 12mo. =276k. less 10% vacancy = 248k. less 50% = 124k put this income at a 10 cap and you get 1.24 million

Offer 1.1 ;)

you need a list of properties ( i can get you one for free, dont pay for one)

then you need to look up each owner, and research their phone number etc

call them all and say you are interested in buying a property similar to theirs

and GOOD LUCK because there are about 1000 brokers out there that have already done all of this work and are calling these owners every day! I would tell you to find one thats already for sale and make an offer.... go on loopnet

the price per unit can vary in every market, I've seen deals in my market trade at 100 per door and others at 30 per door, it all depends on location, income, rents, etc etc etc

In FL you're looking at 30% down minimum. Especially on smaller deals, i'd guess you'll need around 35% down. Either way, all that matters is the deal, some are owner financing etc and you can get into the deal with less down. Start looking at a few deals that are for sale and you'll get a feel for it right away.

also, are the rents at market? Is there any room to bump them?

Hey Anna,

How many units are full right now? And how many are 2 bedroom units?

i stopped reading after it said 5% down payment, good luck!

When you buy the asset the lease will already be in place.

Lokesh, you're trying to do what we call "working the buy side". You have a "buyer" who may or may not be interested in a property you don't have. I would spend more time looking for the actual deals... do you know what apartments are on the market in your area?

do you know how to correctly underwrite an apt? How do you know what a "good deal" is in your area? etc etc etc.

Basically i'm telling you to stop chasing around this "buyer" and start looking for a good apartment deal. Let me give you a hint (its not easy)

1. Find one that already has management in place
2. Yes banks will lend on MHP's, it depends on your credit and the validity of income from the MHP.
3. I would recommend buying a park where the majority are not park owned. Just collect the lot rent and charge less.
4. No idea, better advertising? Improve the looks / tenants in the park
5. varies
6. I would say around 30-40 depending on a million things i.e. pools, rec rooms, etc