All Forum Posts by: Anthony Vicino

Most consultation of this sort is going to be pretty pricey as the people you really want to be taking advice from know the value of their time. The people willing to take a smaller fee are maybe people you don't really want advice from anyhow.

With that said, as you know, there's a wealth of knowledge here on BP to get you zeroed in on the target.

Might be helpful to know more about your background, the deal, and your desired outcome? With that info we can point you in the right direction and hopefully save you a bit of money/heartache in the process.

I'm open to being wrong on this, but I'm relatively certain there are generally no restrictions against occupying a unit of your own multifamily property. (This would likely extend to industrial and office, as well. Many companies purchase the building they occupy.)

I can think of a number of reasons off the top of my head why it wouldn't be financially prudent to occupy a unit, but the bank is unlikely to care regardless.

If you're thinking you'll just occupy a unit and charge yourself above market rent to juice the numbers and raise the valuation, well, that most certainly won't work.

You should most definitely talk to @Yonah Weiss (the Cost Seg King). He can answer every question you have, plus I think he offers a free initial consultation to see if a cost seg even makes sense.

Between @Amber Gonion @Jordan Moorhead and @Daniel Anshus, you have 3 qualified brokers who'd be psyched to run some comparables and give you a ballpark.

I recommend giving one of them a ring.

As long as there are people willing to pay pre-Covid prices, not much will change.

Unfortunately, that's the majority of investors.

Welcome to MPLS investing community @Micah Haworth! That's a rockstar list of books you've read there.

How's the wholesaling/driving for dollars/cold calling going?

Rules of thumb are often over-generalized, though they can serve as good launching off points.

Age is an important variable in a value-add deal, but there is no hard and fast "buildings over this age are trouble" rule. It's all contextual to your market, your investment appetite, and your business plan.

Here are a few keys things to consider:

Your Market: As @Mack Benson pointed out, up here in St Paul/MPLS, most of our small multifamilies (2-5 units) were built nearly a century ago. The market has an expectation of "older", therefore it's not a problem renting these properties out. In a newer city, this might not fly. (Cincinnati is an old city and I'm guessing the market has similar expectations).

The Building: Many old buildings are structurally sound. Some, not so much. Just beware that no matter how well built the building, older generally means more cap-ex. Plumbing, electrical, mechanicals...these these wear out and can be pricey to replace. If the downstream increased revenue/decreased expenses justify the upgrades, great. If not, no bueno.

Your Plan: What's your gameplan? Are you looking for a turnkey asset that generates cash preserving yield or are you looking for some decent appreciation coupled with cashflow? Are you outsourcing management or handling it yourself? What's your exit strategy? How you answer these questions (and more), will ultimately determine whether or not an older building works with your strategy. It certainly can, but as with most things in life, it depends.

Also, as already pointed out, the MLS isn't going to be a great place to find multifamily properties over 10+ units. What size properties are you looking at?

@Todd Dexheimer Fully agree.

 Multifamily is a slow moving ship. It's going to take awhile for it to turn.

We've seen a substantial uptick in deal flow (50-150 units) in the past month, though there is still a pervasive seller-expectation of pre-COVID pricing, whereas our underwriting has shifted even more conservative.

As long as there are buyers willing to pay the premium (often justifying it with talk of how cheap debt is), prices will stay high.

Significant price reductions likely won't occur for another 12-18 months (late 2021). Here's a great video from Ken McElroy talking through the market cycle dynamics.

At the end of the day, we're all staring into a cracked crystal ball. Be careful you aren't just seeing what you want to see.

Jadde Rowe is an all-star. Highly recommend.

@Tim Swierczek is an awesome resource.

Other all-stars in the Twin Cities are Connor Hesch and Kim Burke. Shoot me a DM and I'll hook you up with an introduction.