All Forum Posts by: Angello Campbell

Thanks Doug. Last time I use this lender. I feel like 2.5% is a little steep in this market, especially when I’m getting hit with a 9.25% interest rate. Thank you for your response. 

Looking for an opinion from the many professional investors here. I am in the process of closing on a (4) unit Multifamily on Monday 11/13. 

When the original loan was drafted It was for a sale price of 325K with 20% down financing $260k financed.  Since the original loan, the appraisal came in way under at 287k which I was able to negotiate a sale price of 305k. My new finance price is $229,600. Which is $287 minus 20%. 

Now the lender fees went up by $2545 for (points) shown in pic. When I asked my loan officer why the big jump. He responded with “Spoke to secondary market and since the loan amount went below $250K there is a massive price adjustment (that you saw); this is controlled by secondary (Capital xxxxxxx) and cannot be reduced or eliminated.”

My question to you is…. Is this normal, or right?

Thank you everyone for the insight. I will definitely be asking a lot of questions when I interview my management company. @Brie, the property is located in Southern Illinois (Belleville). 

I was able to get the lease agreement for the units. One is a month to month and the other 2 expire in January 2024 so I don’t have long before I can renegotiate the lease and new rent. 

Thanks again. 

Good Evening Bigger Pockets,

I am in the process of closing (Nov. 13) on my first multi family apartment building and I couldn’t be more excited and nervous at the same time. The building is a 4 unit 2BD 2BA and 3/4 units are currently being rented. I am working with an agent that is wet behind the ears when it comes to multi-Family. It seems like I’m the one doing all the suggestions and don’t get me wrong she is definitely following up and getting me the answers. The problem is with this being my first multi family I don’t feel like I’m crossing my “T” or dotting my “i”. Is there any insight that an experienced investor on here would like to suggest. I’m all ears. 

Inspection came back with minor cosmetic repairs and appraisal was conducted today. When I take ownership, will I need to have all new leases signed? Can I raise the tenants rent since they are below market? What obligation do I have to the tenants? This will be an out of state property since it’s in Illinois and I live in Northern Virginia. I will definitely be using a management company, of which there is already one in place. 

Any insight would be greatly appreciated. 

Thank you. 

Shout out to all my Bigger Pocket investors out there killing it. I was wondering if you can let me know whether this is a good deal or not. (5) unit multi-family building. All units 2beds 1 bath. Current rent is $895 per unit. Asking price is $350k. I would consider this a “C” area. I currently have 3 townhouses as rental properties of which 1 will be paid in full in the next 3months. I plan to take out a loan against that property to buy this multi-family. Oh I forgot, taxes are $6407 annually. 

On another note there is a listing that is selling (2) 4 unit apartment buildings for a total of 8 units. All units are 2bed 1 bath. Price is $619K for both and the seller won’t separate them. If I was try to purchase this one, how would the loan go? Would it be a commercial loan because I’m buying a total of 8 units or would it be a conventional loan because they are each 4 units. 

Hello Fellow Investors,

As investors continue to scour the internet looking for multi-family deals hoping not to step on a land mine. I noticed that there seems to be a couple of reasonably priced properties in Edinburg/ McAllen Texas. Being so close to the border causes me some concern, but if and when the “WALL” goes up some of my concerns will be relieved.

My question to the group is..... does anyone have any knowledge on those areas. With an 8% cap rate, it’s very tempting. Any thoughts, insight, comments would be greatly appreciated.

Thank you

I clicked on this property link in Conroe Texas and got a call from the realitor that is representing the builder. He did his job by painting a picture like Conroe was the next San Francisco and how fast the area was growing. Well I didn’t bite on his sale antics because I just have a hard time with the 6.5% cap rate on a pro-forma. The property isn’t even built or rented out yet.  Let me know your thoughts

202 Oakcrest Rd

Conroe, TX 77304

http://www.loopnet.com/Listing/14728488

@Dan Heuschele: Wow Dan thanks! You definitely gave me some things to think about. You are correct, I am squeaking by but still cash flow positive, I take into consideration the tax write off since my 9-5 job pays me $160k a year and Uncle Sam loves me. I will definitely look into those options. Thanks

@Ron Gallagher thanks for the advice, I will look towards that option. Guess you gotta crawl before you walk.

@Ron Gallagher. Thanks. Sounds like back to the drawing board. Good luck with your deal