All Forum Posts by: StacyA McBain

AVID Investor's Club is a Boise investing group that will meet up tomorrow 4/17 at 6 p.m. The feature presentation  "Landing Opportunities" will look into a couple creative opportunities to use land, despite the rising building costs and busy contractors we face in Boise. 

Please RSVP for details on the club, and tomorrow's meeting! 

AVID Investor's Club is designed to help investors learn the market, to make more profitable and informed decisions. It provides opportunities for networking, education and hopefully improves your overall real estate results. To keep our value high but our cost FREE, and to plan for the beverages and snacks we provide, we ask for your RSVP to this valuable invitation. 

Thank you, and happy investing! 

Practically speaking, you might check your disclosure rules, now that you have an internet record asserting that you believe the house is haunted. In Idaho, "Psychological issues" are not disclosure issues. If the same is true in your state, you won't have to worry about your future sale coming back to "haunt" you, from a disclosure perspective, if Yo Sammity Casper shows up. 

Pun-intentional of course :). Good luck! 

@Matthew McNeil

The terms to negotiate in any sort of owner carry are: price, downpayment, term, amortization, interest rate and fees/penalties including a pre-pay. I'm sure your tenant would love a low rate, 30-year fixed loan. But they're not in a position to secure that kind of deal, and it's not favorable for you to be the one to extend that opportunity.

The loan can be amortized over 30 years but due in 5 years (balloon payment), at which point the tenant would need to have the ability to refinance or otherwise buy you out. 

The consequences for inability to refinance or lack of performance could allow you to keep money and get your home back, or re-negotiate (condition and more hands-on effort required to foreclose are risks there, even if you have a strong team involved). 

If you consider doing this, you might bring in an expert to help negotiate with the tenant and set up the deal. It would need to be one who can advise on other ways to make this smooth and as passive as possible. I don't try to set the tenant up to fail, I work more to protect you and make sure if they do fail, you're in as favorable of a position as possible. 

@Matthew McNeil

I've helped facilitate a few of these deals for a reduced commission and they feel great for everyone when they work. 

My advice if you do it - #1 - get them to get pre-approved by a lender by a certain date. You recommend the lender so you can find out how solid they are. 

Many of these deals would be great but don't end up working for a very simple reason (lack of finance approval), but they get dragged on for an unnecessary amount of time before that easy detail is revealed. 

@Raymond Northcutt

I know an agent up there who I trust with my referrals. Message me if you'd like me to connect you. While my license allows me to practice in McCall, I believe it's better for my clients to work with someone who is there and a true expert in that micro market.  

AVID Investors is an Idaho Real Estate Investor's Club located in the Boise Idaho area. Our ultimate goal is to boost results, through education, networking and resource sharing. Meetings typically include a market update, rental market update and feature speaker. 

This month, a representative from Vacasa is flying out from Portland for our feature presentation, which will be slightly different in format.

Monthly meetings are:

• The Third Wednesday of each month at 6:15 p.m. (except August and December) I recommend arriving at 6 p.m. for your first meeting.
• Free, with free beverages and bites
• Invite-only (guest invitations are available)
• Our core membership base is comprised of buy-and-hold investors for cash flow. Meetings are focused and note salesy or off track. 
• Please don't hesitate to reach out for an RSVP
• No meetings are held in December or August

Don't hesitate to reach out with questions or to RSVP. You'll receive the meeting details with your RSVP, which helps me plan beverages, food and have name tags ready in advance. 

Happy investing! 

StacyA McBain

Welcome Carl!

There are a couple local investor groups.  The next meeting of AVID Investor's Club is in January and you're welcome to hit me up for an invitation. @Jonna Weber puts together great meet ups as well. The local clubs are another good way to jump right in. 

Happy Investing,

Stacy

@Bill B. Do you know if they're selling that one vacant or leased up? Their proforma operating costs seem low/that cap rate appears pretty ambitious. That said, the location is strong and could warrant buying into at a lower/more conservatively calculated cap rate. 

Hi @Tyler R. 

Commercial multifamily is my niche. Cap rates in Boise are in the low 5% or even high 4%'s depending on whether you're using current or proven market rents. Sometimes it also depends on whether the listing agent is realistic about their market rents. We have more 4plexes than most markets, and there's not much of a cap rate boost as you go bigger, where supply is lower. 

Nampa has slightly higher returns, even after the higher taxes there, but I'm pretty skeptical about being able to personal validate any listing claims of a 6.8% cap rate on a new build 4 plex, after I run the numbers. I'll look again for those and buy them or sell them to clients if it's legit. That's more like the cap I might expect to find on a historic (read 100-year-old) home with lots of charm (aka oddities). 

I have a 90's built 25-unit listing that we priced at about a 6.8% cap rate. It's Section 42 LIHTC, so we listed it at the high end of caps. We had multiple full price offers, however the deal fell and it's back on market. 

Garden City is happening. It's priced as though it has happened despite the surrounding trailers, but if you find a deal there, it's worth a look. I know of an off-market retail (recently vacated) with office or apartment above, in the heart of Garden City, where parking is the challenge/hurdle to overcome.  It will sell list in the low $400's.

I'm curious what cap rates you are finding elsewhere? Or what cap are you willing to tolerate in a growth market like Boise? 

Happy Investing!

StacyA McBain

I have an active listing for a 25-unit multifamily property in Nampa, Idaho that currently is owned by a TIC/partnership and would be a decent property for a similar set up. It's Section 42 and the cap rate is well into the 6% range. I see Boise is on your list, so you might note that's the highest end of cap rates here in the Boise-area market, at least for a 90's built or newer property.