All Forum Posts by: Chase Gochnauer

Hello all! I'm closing on a 71 unit this week to add to my existing portfolio of SFH-12 units. I plan on continuing to go in the direction of larger multi-family and am looking for any good events, either networking or education based, that's aimed towards multi-family. Can anyone point me in the direction of some of this good events this year? Thanks!

Are you sure it's not just in there as a reduction in the origination fee or something?

1. It doesn't sound like there's anything wrong with the Massachusetts mortgage. I don't see any "arguably" about it. 2. Unless you have detailed documents you have no way to know if the loan with the local bank was "conforming"(to Fannie and Freddie standards) 3. Again unless you have detailed documents that likely aren't public, you do not know if the refinance of the Washington DC house was owner occupant or investment. As others have said, there is no winning here, short of revenge. I don't understand why you couldn't have matched the buyers price or bid higher than the new buyer, if you were in contact with the agent?

Originally posted by @Bab Adetiba:

Full analysis of the property which didn’t accept my offer.

26 units Asking: $575,000
Offered $550,000
Op expense is 55%

Noi: $72,000
Cashflow $45,000

29% Coc
13% cap rate
30 year mortgage at 6% is $2,062 monthly

I can email my spreadsheet to anyone interested.

You'll be hard pressed to get the loan at 30 year amortization. 20-25 year is more likely for that many units. That is also a very low price per unit, if it's in a rough area I'd project vacancy higher due to the type of tenant, higher costs, etc. That high of a cap rate is also very unusual unless it's a rough neighborhood. Never trust what the current owner is giving you, especially if it's in a summary view without detailed breakdown. They also will often not include capital expense items such as new kitchens, roof, appliances, etc. in those opex numbers.

If you are completely managing the day-to-day, I'd go for higher than 15%. At very minimum, I'd take an 8-10% property management fee, and then split the difference. Managing that many units is a lot of work. 

Sorry just saw your previous post about not having the down.

Are you doing a low down owner occupant loan? If you can afford it you might be better off considering it a legit 20% down investment property then they probably won't care.

I have a couple properties that are not grounded. It's not essential to have done, but tenants can get frustrated by it. I believe electrical code states that it is okay to put in a GFCI that's not grounded as long as the not grounded sticker is used. I had an electrician that ran bare copper grounds to all the outlets for about $800. Some electrical companies have newbie grunts that are cheaper for just this kind of work.

So, if you could find a $300-350k duplex with similar cash flow, but 2 hours closer, be you'll be money ahead.

You could probably spend 1500 more a month on a house to have it be 2 hours closer to work. That extra 4 hours of driving per day would easily equate to that assuming about 200 miles.

Hire a PM, double your number of properties, have the same hours per week being spent with a much higher total margin. The key is being efficient with your time as that's the one true limit that is equal to everyone. 

Don't get me wrong, costs need to stay under control but some people will spend 5-10 hours a week replacing toilets, faucets, painting when they could use that time to find another property which will net them more money in the long run. Don't step over dollars to pinch pennies.