I'm sorry Anthony, but I just have to reply. I was going to let it go, but this info is being read by a lot of newbies and they need to understand a couple things.
1.Units are going to be 100% vacant before they'll be 10%. (you said you're emptying them).
2. Your expenses will NOT be 27%.
3. Your NOI isn't close
4. Your reair estimate is a guess.
5. You have a partner with different goals
As I said. Prove me wrong. Come back and keep us posted. I've owned thousands of units and I stick to my original concerns. I'll try to not reply again, but your #'s are in question, imo.. Rich, just trying to keep it real.
Anthony
I live just North of the Airport and all the apartments are weekly or section 8 housing. let me know if you want to sell the note in a couple of months. E-mail me
Thanks
David Wolvington
Anthony,
I'm back in FL for onr day then going to a seminar and expo in Vegas wed. I'd be more than happy to put another set of eyes on it and give you some thoughts. If not, that is also ok. PM me with address. Rich.
Anthony,
I'm back in FL for onr day then going to a seminar and expo in Vegas wed. I'd be more than happy to put another set of eyes on it and give you some thoughts. If not, that is also ok. PM me with address. Rich.
rich, you are awesome! be sure to let me know whn u are in the tampa area!
Thank you for your advice and wisdom. That is way I put this on BP because it is my first multi unit and I want to get much advice from seasoned investors
David,
I will keep you in mind.
Rich,
Sure, I would love that. Give me a call and I will give you the info.
Also to all. I will start rehab the 2 vacant units next week. Repair bid is 2600 for the 2/2 and 2100 for the 2/1. I also have a plumbing issue that will cost me 5500.
I am giving the other 4 unit occupied tenents 60 day notices. And then I will rehab those four. I also will speak to a Section 8 rep. today.
Make sure you develop a scope of work for you rehab. State exactly what is expected for the price.
$2600 inlcudes:
flooring, drywall and paint, light fixtures, cabinets and countertops, HW tank, interior and exterior doors and hardware, plumbing fixtures, HVAC or wall units, windows or broken glass, smoke detectors.
You need to determine what needs to be permitted per code ie. HVAC, Electrical panel box, gas lines. Some items you can install without licensed contractors. ie light fixtures and plumbing fixtures (A handiman is good for somethings, but others you don't want to cut corners) the liability is not worth the risk.
Also, specify how the units will be secured daily. ie plywood with screws
I usually engage the existing tenants to show them the property while under construction and ask for referrals even if they may not pan out. This allows people to see what's going on and cuts down on vandalism during after hours.
I just want to say thank you all but I am thinking of pulling the plug on this deal.
Saturday is my last day of my cancellation per our agreement. I just found out that there was a death 13 years ago. And 8 police inncendents in the past 5 years and 1 arrest.
Should I cancel or should I stick with it? I am 50/50 about moving forward, because of what I have just found out and because of all the advice you all gave me.
I need what you will do if you were me.
Rich,
What day are you able to look at it? Will it be before Saturday evening? I just requested you. Look forward to here from you.
Saturday is my last day of my cancellation per our agreement. I just found out that there was a death 13 years ago. And 8 police inncendents in the past 5 years and 1 arrest.
i'm not sure what this has to do with anything. 13 years ago is a LOOONG time. 5 years is even a long time. 8 police incidents? that can be anything from cars without tags to domestic battery to murder. and 1 arrest in 5 years is pretty low.
The title of your thread says "Just closed on a 6 unit apartment building...". That being said, how are you able to reconsider following through with the deal?
I may be training in the area. I won't know until my coordinator confirms with me. What is the address of the property and I may be able to send one of my people to take a look at it. Also, email the contract you've executed for review. If you've closed on the property, you own it, little confused, help me understand so we can give you our input. Thank you.
Last year I had to evict my tenants (pay or quit), and terminate the property manager co. contract for:
1) withholding info from me (3 extra occupants and 3 unauthorized dogs on the premises)
2) mailing the rent $$$ and receipt every month at their leisure (late)
3) never returning my phone calls.
The company changed managers 3 times within the same year. Needless to say, I have yet to receive a response from the written complaints I've made.
My property is a beautiful 2005 2story 2 Thou sq, 4bd/3ba
on the north side of Vegas (Craig/Loosee), and the area is turning into sec8.
If you plan to hang in there, you'd better have a third eye to manage your managers.
The thread title should have been "Just negotiated terms on 6 family deal in Vegas". Closed is a completely different thing. Please try to honest when seeking advice, instead of having a bizillion people reply and try to help!!
The OP is new to real estate and perhaps did not understand that the deal was not "closed," so I would not be too harsh about that.
The problem with giving advice on this deal is that the terms are not very clear, at least to me. Exactly what does the seller get and under what circumstances, etc.
In any event, my view is that if a deadline is approaching and I am not sure about the value of a deal, I will always choose to back out. There's nothing terrible about keeping money in your bank account while you scout for another opportunity. It is much better than rushing into something in a state of panic and screwing things up.
How did it go Anthony? I have been managing properties in Las Vegas for several years and you cant be afraid as I had seen one of these investors say run like hell. The truth is, there are bad managers out there. I know, I have had to fire several that were raping their owners and fix things. I agree with what you were trying to do and upgrade your tenant base...but remember...everything has its place and timing. Unless you can take on the immediate financial income loss and sustain that loss, I would have suggested slowing down on all the evictions and used a gradual process of upgrading both the building and tenants. Remember...no matter how much you spend, it takes time to build reputation. Do it slowly but surely. Be vigilant. I specialize in distressed properties and so far..knock on wood, I havent found a property yet I havent saved and made profitable.