All Forum Posts by: Tony S.

I bought an 18-unit portfolio and did not hire a GC.  7 of the units were vacant at purchase and I was able to renovate them fully within a 3-month period (roof, siding, flooring, new drywall, paint, kitchens, bathrooms, etc.).  Every inch was renovated or replaced. It took another 3 months to fully lease them during fall/winter slow season.

 With respect to the remaining 11 units, those took us a total of 6 months to renovate (9 months for the total project).  I did not do any of the physical work, but I did manage the subs.

I've had 11 vacant units available that came out of rehab beginning of March.  I've filled 6 of them so far during COVID, but had to drop the rent price by $50/unit and give half off first month's rent.  5 units remain vacant, though we've rejected a few applications.

100% (11 out of 11 tenants) paid on time for April.  

This is a shot in the dark, but does anyone have any reasonably priced handyman recommendations for light demolition work and miscellaneous handyman tasks in the Charlotte, NC greater area (specifically, Kannapolis, NC)?  I wasn't able to find anything through a search of this forum.

Doesn't sound like a deal breaker to me, especially if the neighborhood is trending in the right direction.  Perhaps use it as leverage to negotiate the price down even further during due diligence.

Nicely done! 

Numbers:

Offer: $285,000

Preliminary Repair Estimate: $200,000-$300,000 (I'm in the middle of inspections and obtaining quotes)

Pro-Forma rent after repairs: Average $630/unit

One building was converted to a single family home from a duplex.  The layout is still that of a duplex, so I'm considering converting it back to a duplex for a total of 18 units.

Thanks,
Anatoly

I’m under contract on 17 units (duplexes and single family homes in a sub-market of Charlotte). Anyone have any recommendations for a portfolio lender? Thanks,

Anatoly

Hi All,

I'm currently keeping a few lines of conversations open with off-market 50+ unit owners that may be interested in selling their portfolios in the near future.  Assuming one of the deals go under contract, I will act as the sponsor and syndicate the transaction for the down payment and repairs under market terms.

This may be a dumb question, but I'm wondering whether there is a tool that syndicators use to keep track of investor contributions, ownership interests in the deal, Sponsor distributions to investors, or just to play around with different scenarios?  Or does each syndicator have their own method of keeping track of these data points?  Thanks,

Anatoly

What you're alluding to are capital expenditures, or CAPEX, which can be depreciated as an expense over a period of time from the owner's tax obligation.

I think everyone here does it a little differently, but I typically have a higher capital expenditure reserve in the beginning (10-20% of rent) until the reserve balance hits a comfortable level. 

I also budget for repairs (usually 10% of rent) in addition to the CAPEX reserves.