All Forum Posts by: Adam Philpot

Morning,

I have my first meeting with a local developer. He has done some really interesting commercial and residential projects in my area. I really want to get into his world and learn how to develop. I want to offer him my agent services at a discount to build a relationship but my real goal is to learn his side of the business and how to build from the ground up.

I want to make sure I bring value in this meeting and figure what he “needs”. What do you think the best approach is to do this over a coffee meeting?

@John Teachout good question. I essentially put 50k into the deal in 2014 (20% down payment) and would profit after paying my mortgage off of 200k (150k once you subtract out my initial investment). No tax since right now this would be considered my primary residence. What do you think?

@Devan Mcclish thanks Devin! Great to hear that

@Brian Gerlach thanks this is great feedback and food for thought. What makes it especially hard to hang on to is an insurance claim from a small faucet leak essentially got us new cabinets, new interior paint, and new flooring for free. To boot we painted the exterior about 3 months ago.

I guess my only real reservation about keeping it is tenants damaging all this and having to fix the interior again before selling. You make some great points so thanks for your thoughts.

Curious to hear what you would do between renting or selling in my situation.

Here are the details:

I have a residential home in Nashville TN built in 2014 and great location. For tax purposes this would appear as my primary residence and avoid any type of capital gains tax.

If I rented it, I would clear $1400 a month after paying P&I, property tax and insurance (so not factoring in expenses but it’s a newer property). If I sold it I’d clear about 200k.

What do you think BP’ers? What would you do?

@Lauren Griffin this is encouraging! I’ve been apprehensive to get a multi unit in g-burg because I assumed most people want to rent cabins. Where is yours? What was your average monthly occupancy on a unit before Covid? Are they 100% vrbo and airbnb?

Sorry for all the questions

Hey guys,

In these uncertain times anyone trying to refinance? What was your rate? Who did you use?

@Michael Le thanks. So if I was doing amortization of 20 years on a 20 year term you think the interest on the loan would be a lower percentage?

@Alex Olson thanks that is helpful

I'm interested to know how long term hold strategies work on multifamily. I've never done a large multifamily deal but when I do the math not sure how anyone can make any Money on a property doing a 6% CAP or less. I'm obviously missing something so if anyone can set me straight or recommend some reading I'd really benefit.

For instance:

10 unit Asking price: 1,000,000

NOI: 60k

Down payment: 250k

Reserves:50k

5.8% interest Loan:750k

P&I: 52.8k