All Forum Posts by: Carolyn Yates

Location is tough to nail down without more input from you.  St Petersburg area has some great options for small multifamily.  I have heard others on the site mention Jacksonville as well.  Polk County between Tampa and Orlando is a very affordable option.  I was born and raised in the state and grew up just north of Orlando, but live now on the gulf coast.  I am glad to suggest other areas if you can offer more details on what exactly you are looking for - affordability, cash flow, close to employment centers, near the beach?  

Appraisers always value it at its highest and best use.  As @Brad S. mentioned, both approaches should be included in the report.  It would depend on the market and the data available as to which approach would be the most reliable.  Textbook answer is it should be valued as other buyers in the market would evaluate it.  If other investors are looking at it by the price/SF then that is how it should be valued.  If investors in your market always look at a multiplier or the income approach then that would be the best indication of value.  In a perfect world, both approaches should be fairly close in value.

Very little info was provided but generally speaking, the decision to sell would be based on what you plan to do with the money once you sell and of course, any tax implications would need to be considered. If you don't need the equity then I would raise the rents if able and hold it.  If the equity is needed for a better investment then selling is your best bet.  With the current rates, I would hold if possible unless you are a cash buyer for your next endeavor.

My broker recommends Blanchard Insurance.  I have never worked with them personally, but the are located in Altamonte Springs.  

Insurance Agency in Florida | Blanchard Insurance

The pro forma is actually very similar to an apartment pro forma. Typical expenses are taxes, insurance, utilities, repairs & maintenance, management, general and administrative, and reserves. The vacancy will be market driven and reserves will depend largely on the size of the property and the quality of construction.  There have been several posts on here regarding self-storage lately.  You may want to reach out to one of the people who made the post directly.  I think some are investors and others are like you looking to buy.

This might be helpful...  

The Top 10 Self-Storage Companies of 2022 | Commercial Real Estate Loans

The pro forma is actually very similar to an apartment pro forma.  Typical expenses are taxes, insurance, utilities, repairs & maintenance, management, general and administrative, and reserves.  The vacancy will be market driven and reserves will depend largely on the size of the property and the quality of construction.  

The rates are often lower on the commercial loans too.

Yes, as long as it is permitted for 3 bedrooms if on septic you should be fine.  For an appraisal, a bedroom must have a closet and window for egress.  

Congratulations!  What state is your investment property located in?