All Forum Posts by: Allyssa McCleery

I think that is a good idea @Jorjio Hopkins of having a specific metric of when to pursue a deal based on the purchase price you need to make a deal and the list price. Although, I have definitely heard stories of people getting deals off of loopnet for much less than the purchase price simply because a lot of investors write off that website. The process Jorjio has laid out is super helpful and another tip I heard in a Best Ever podcast this morning that when you are analyzing for the sale price (after you've held for a few years) you will want to add .25%-.5% to the cap rate at purchase to estimate what your sales proceeds.

I agree with @Account Closed about starting with a blank excel sheet. 

There are templates you can use to analyze all over the internet but a colleague/partner of mine taught me how to build the spreadsheet from scratch and had me do this several times with different properties so that I could really understand the calculations and how the variables change with different properties. I think this is very beneficial when starting out in the multi-family space so that you can be sure the numbers have been worked correctly. A small error missed in the calculations could be the difference between a good deal and a bad deal!

Is anyone from South Florida or Columbus, OH attending ??

I agree that this should be judged on the type of property and the type of tenant. If you have had issues in the past where the tenants are not reporting necessary repairs (which is costing you more money than if they had been reported in a timely manner), then you are dealing with more risk and therefore will want to monitor the property more. People that rent apartments are different and usually more transient than people who rent homes so I agree that apartments should be inspected slightly more than houses but I would say more than 2 or 3 times a year should not be necessary. Also, as mentioned before you will want to include these inspections in your lease so the tenant expects them. Once you feel more comfortable with the tenant and with managing a rental you can always reduce that. 

@Brandon Williams You are in a great market in Jacksonville. You could definitely find better deals than 1%. I shoot for 1.3% or the ability to achieve 12% cash on cash return within the first year. I agree that you should look into house hacking but you can also keep the property you have once you have built up more equity and then borrow against it to buy another property, then borrow against the equity in that property/do a cash out refinance and keep repeating that process while holding the rentals rather than selling them. It is true that lower priced properties make better rentals so you may not want to live in these types of properties but that doesn't mean you can't acquire them. I have never lived in any of my rental properties or have even purchased a personal residence so this is definitely something you can do which will enable you to scale up. 

@Orlando Perez As someone who may be looking into investing in a multifamily syndication I am curious about what are the types of things your friend will look for in a deal? Will it be more heavily judged on the experience of the asset manager, or the potential return, or the type of property? Or any other factors?

Got it, thank you. 

Great idea to set up google alerts! I will definitely implement that. 

@Ian Ippolito Thank you!!

I really like the idea of adding in a co-working space and a bike share program.