All Forum Posts by: Austin Johnson

what size multifamily? buy yourself or buy with a group of people? active or passive? depending on your answers i can direct you easier. i'm in the med-large multifamily field myself so this is my bread and butter

as previously stated, which topics? what are you wanting to learn and hoping to gain from these bootcamps? people will sell you 'bootcamps' till the day you die. same with 'masterminds'. if you dont have criteria of what you want to learn or gain, its a waste of time. 

@Eric Hempler inflation isnt 3%... it's near 8.5% per the last update.
a CD is a stabilized investment with no downside. I'm certain we can all agree real estate has potential downside. this puts massive risk to the investor vs a cd. the more risk, the more return.
Stock market average is 7%. I can put $100k into the market and get $7k return on average. why would someone risk more for the same return with a new investor? this isn't meant to tear down the idea. in fact I'm 100% in favor of syndications. it's to say raise the return to investors. 
you want to raise the equity needed for down payment. then promise those investors a set return on their investment and use the property as collateral. dont try to reinvent the wheel with a very dated book.  there are thousand upon thousands of successful investor that came before both of us. if this avenue you speak of was feasible, it would already have a catchy name to it and be popular. 

"CoC looks to be low, 4.84% (predicted to hit 10.85% by year 10)"

if you're paying all cash for these deals or funding yourself, that's decent. if you're raising private capital that's miserable. 

"if it's diversified across a good number of properties"
this is why I wouldn't do it. if I'm buying MF units, I want them close for easier PM and under the fewest number of roofs.

"I'd love help working through what all would be needed in order to secure financing (not sure if that cash flow is enough to make it so that an investor would be 100% willing to dive in)."

what's the purchase price and the Gross Scheduled Rent? (total rental income if units were 100% occupied) is the DSCR 1.25 or higher? additionally, do you have anyone on your team with experience in MF who has closed on something this size before? banks TYPICALLY don't lend for big projects to brand new folks. you need someone called a KP on your team (Key Principle) to cover the experience, net worth and liquidity requirements of a bank. this protects both you and the bank.

No. let this one slide partner.

Hey Jasmine, making sure I'm understanding correctly. you have 20% down as well as your closing costs? is the written correctly?

so $100/ door?  

35% for PM, maint, capex, vacancy, ins and taxes. (obviously find those Individually) 
$2,000 - expenses is $1300. minus PITI of $1200. $100 cashflow

if you rent for $1900 though, it's a NOI of $1,235. with PITI of $1200. $35 cash flow. woo!

have you considered syndications? roll your 1031 equity into a passive role (or active if that's your thing) on a much larger property. MAY increase cash flow and leverage the equity. that being said you can also refinance (run the current numbers) and leverage the additional capital to do the same thing. 

it doesn't really work that way...I could drop $200k into my bathroom. that doesn't correlate  to increased profits. 
when I'm underwriting apartments, I pull comps. ok, so all three surrounding apartment buildings have tiled walls in the shower with LVP flooring? and they're all charging $.50/sf? good to know. 
if my subject property has a plastic tub and carpet. (and if everything else is the same) I know my value can go up to $0.50/sf. then work backwards. example: say you're getting $0.30 currently. so you can see a 0.20 increase/sf for the renovation. 1200 sqft total(guess based on being a 3/2) that's a $240/month rent raise based on the remodel.  $2880/year return.

are you doing the remodel to maintain or to improve income? Cap Ex covers to maintain. if you're looking to improve income, you need to do the above math with actual numbers and figure if dropping $5k is worth an increase of $2880/year. 

rents? are you planning to rent this out? how much per month/year? what type of cash flow? that's a key part to the strategy. form there, how much are you putting away for reserves? vacancies, etc.