All Forum Posts by: Johnny P.

Hi Steve, I know some of the top residential realtors in this market. They work only with investors and have tons of experience. I'll send you a message

get the updated rent roll, what is every unit renting for? Estimate the rental rate for the owners apartment.. example - if he lives in a 2 bedroom and another 2 bed in the same building rents for 750, use that to estimate a full rent roll. then add it all up and multiply by 12 to get the Effective Gross Income.

be sure to add in any additional income like a coin laundry etc.

this gives you our Gross Potential Income - then start deducting expenses -

(10% Vacancy) (this accounts for tenant turnover or just general vacancy, raise the % depending on the local market)

(Taxes)
(Insurance)
(lawn maintenance / pest control services)
(Repairs and Maintenance)
(Management Fee)
(Common Utilities paid by landlord)
(legal fees)
(Marketing)

etc etc. make sure the expenses are atleast 50% of the Gross Income.

this gives you the NOI.

then you can determine the price based on the market. Where I live, apartments are trading for anywhere from an 8% - 10% return so i would take the NOI / .08 or NOI / .10 to determine a price.

List it and let the market determine the rest, best of luck!

Mark, I don't think getting your RE license will do you much good. I guess if you are looking to start out smaller (2-4 unit range) it may be of some help to have MLS access, but you could always just ask any realtor to pull a list of multifamily properties for you.

The RE license test is a JOKE and will be of ZERO benefit to you in multifamily.

My advise would be to check out the last 10 apartments that sold in your area and learn the deals inside and out.

Where are they, what did they sell for per unit, what are the rents, what is the unit mix, what are the taxes, what was the occupancy at the time of sale, etc. Learn the deals as if you were going to buy them, and it will give you a much better feel for your market.

I'm guessing you don't want to pay $5k to get access to CoStar... so I can pull a list of everything that sold for you, just tell me what county and price range. Hope this helps!

I would be upfront with them. I normally say something like "Im working with a group of investors that would be very interested in this house and they pay me a fee for bringing them properties"

"I will not be buying this myself, but the contract allows me to legally show the property to them."

Don't over complicate it. If it makes you feel more comfortable, you could always add a contingency that states " This contract is contingent upon approval of my business partner" or anything else you want to say.

I would spend more time looking for a motivated seller with equity, now thats the hard part!

I thought she was talking about residential... Are people cold calling residential owners?

JP, I'm working on a wholesale deal right now in Sanford. If/when I get it under contract, I'm more than willing to let you work the deal with me to get some experience. Talk to you soon!

Kevin, move on to something else unless you are going to buy this for your portfolio.

Non listed properties as in not on loopnet, or not listed by a broker?

If you're going to try finding properties in major cities that arent listed by a broker then GOOD LUCK! I could go on and on about why thats not going to work.

Most people in my area set up a new LLC for each apartment building they own. I've seen a little bit of everything when it comes to how they hold title, but it should be fairly simple to setup a new LLC in the other state.

You shouldn't have to actually pay for the LLC setup until you have the property under contract

Hey Kevin,

I'm from your area and I work in the multi-family arena. It looks like you're looking for vacant apartment buildings to rehab? Seminole county doesn't have as many opportunities as Orange and Brevard, so you might want to consider starting with Orange county since its closest to you.