All Forum Posts by: Carlos Casanueva

ok great @John Leavelle

Looking to buy 10-unit:

PP: $725,000

Investor would provide 25% for DP ($181,250) and I'd get conventional loan for the rest.

I pay closing & holding costs.

I don't have the exact financials in front of me, but the play is an 18-month exit (1031 sell) around $900-950k.

Property could use basic renovations now + 1 unit is currently vacant and the rest are rented below market = my upside.

@John Leavelle I'm looking to finance 75% with conventional loan and bring in an equity partner to put up the 25% DP. 

I have capital should I need to make improvements to the property.

Thank you @Account Closed, can you elaborate a little more, if possible? 40/60 of net income after debt service? And then 40/60 split of gains at exit?

agreed @Michael Le how would you structure it then if they're an equity partner? 

What is an attractive repayment plan to offer an investor providing down payment with, say, an 18-24 month exit strategy? 

Better to use investor as debt or equity partner? 

Would love feedback from the experts....

@Joel Owens Would you say $80/ft is reasonable?

@Account Closed thank you! Good to know!

@Account Closed thank you. I knew about their reports but always thought there was another way to determine the market cap.. Where do you get your multifamily comps? Costar? By the way, I've brokered 3 multifamily deals in South Florida past few months and they call to verify sales price/financials on the properties so I'd say they are one of the most accurate ways. 

@Bill Gulley Never said I wanted to know cap to base on past owner's performance..... But it's definitely good to know if you're looking at a particular property what the market cap is for similar properties in that area...

Like I said earlier, some markets trade around 5 cap while others trade around 7-8 cap. It's a huge difference when you're looking at a sizable property (say over 100 units)..

Obviously, we all want to get the best deal possible but it's NECESSARY to know the market cap rate to determine  your exit stratedgy and/or how much upside you really have.

Where can we get the going cap rate in an area? Some areas multifamily properties are selling for 8 cap, while somewhere else may just be around a 5.... how do we know what the market cap rate is in any given market??