All Forum Posts by: AJ Leman

Seems decent.  If you can be cashflow positive while living there, that is a good thing!

I have to respectfully disagree. Our 1930 building has old hardwood, high ceilings, big windows, crown molding, etc. Most, if not all, new builds cannot match the charm. Our residents just love the old features and stay for years.

What a great deal!  Way to go! Where was this deal at? in CA? Price seems pretty reasonable!

Hey @Darius Mitchell,

Welcome to BP. This is basically our model. We buy multi-family and then flip homes to raise capital to rehab the apartments and force appreciation.  For us, flipping is a means to an end. We feel that the real money is in long term buy and hold multi-family/other rentals.  So we use all our cash to buy those and fix.  I think its a decent way to get going!

Exactly! In our case it made sense. Good luck!

Hey @Lakshman K.,

It's a good question and I wish I had a better answer than, "It depends."  We bought a 1930's 17 unit last year.  Beautiful building with unique tenant class to match! The residents there are more long term and really love the building - which helps when it comes to managing it.  However, our capital expenditures are going to be higher.  When we bought it, we bought as-is (no inspection), but because of that, we received a 75k discount in price.  I think we'll make money, but there are different variables to consider.

Not much of an answer...but good luck!

AJ

It’s on Zoom. Austin and Doug Karkow run it. If you look them up on BP, you’ll find it. They send a link via email each month. Good place to network!

Welcome to BP!

Good suggestions by @Michael Wentzel. There is a virtual meet-up run by Austin Davis (he is on BP). It’s a good place to make connections within the Corridor real estate community.

Best of luck-

AJ 

Hey @Justin Robinson-Howe,

I have not found this to be the case, although I imagine it depends on your state, city, etc.

In Iowa, taxes do come up some, but not all the way to the purchase price, at least not at first. Here is an example: We bought an 18 unit for 1.25M. Tax assessment was $888k. New taxes are around 915k. So, there was a bump, but not up to the purchase price.  I have found this to be fairly consistent in all properties purchased. 

Good luck!

AJ

Dont worry, ten years from now people will be saying the same thing.

Look up Doug Karkow on BP - he runs the meetup.  It happens once a month.

Best of luck