All Forum Posts by: Detra Harris

Thank you for sharing your deal analysis Tutti.  Great tips and very helpful.  I'm working on deal analysis for multifamily units as well. The market here in the Bay Area  is very tight and becoming difficult to find the good deals. I agree, seek an area where the deal works. Good luck on finding your next deal.

I agree, looks good Gabe.  You mentioned this is your 5th rental property, are you receiving similar returns on the other rentals and are you self managing your properties?

Hi Mike.  What a pain in the butt.  Unfortunately I hear these cases all the time and it really gives us dedicated property managers a bad name.

I suggest handling the property management yourself and I agree with Christopher to use a Realtor to lease your rental and screen applicants -- you should approve the final applicant and conduct a phone interview with the applicant  prior to entering into a lease agreement.  Collect your own rents and pay the bills. If you have someone in the area that could perform a site inspection every six months would be great.  Plan to visit your property at least once per year if possible and conduct site inspections. Find a great handy person who can do minor maintenance repairs and who will be available for emergencies after hour calls. Find a good plumber and other vendors that will be on hand when needed.  Keep this list of number available at all times. Residents should call you directly for any matters -- which should be minimum and easy breezy.

Also, I suggest contacting  and networking with at least 2 to 3 neighbors in the area and start a neighborhood watch group to keep informed about your property and the community.

Good Luck!

Umm. Very strange.  I would be interested to know the outcome for this deal . . . maybe the house is for sale, but the lot is not.

Welcome Tate! I'm located in the East Bay area but often travel to Sac for RE opportunities and I also have a couple of clients with rentals in Sac. Hope to meet you at one of the REI club meetings soon.

Good Luck!

Thanks J.  I do see the value in starting with class C - D properties, however, the missing link for me is how to finance renovations.

I will be meeting with Marcus & Mullichap tomorrow. I'm considering placing my RE license under their leadership.  They have a great platform for senior and affordable housing developments, which is in alignment with my credentials. In the meantime, I hope to continue to receive feedback and resources from local investors such as yourself, Frankie, Alan, Joey and Minh.

I'm offering property management services at no cost on my first deal.  This is a value often underestimated by investors.  I am confident that I can increase the value of investments within 3 to 6 mos by 30% to 50% -- and I have a proven record of doing so.

My investment objectives are to use private investors for cash requirements, recover any of my own invested cash within one year, provide property management at no cost through the holding period negotiated with investors. I'm seeking a consistent cash flow for a five year period; a goal of $2k per month the first year, expecting to be at $10k by year 5, therefore, it is my understanding to seek properties that are positioned for rapid appreciation to best meet my goals.

Yes, I would prefer to leverage our investment dollars by obtaining a loan. 65% - 75% LTV seems to be the standard with conventional lenders. I would prefer seller financing for my first deal as this would be a win win situation for myself, investors and the seller. I am also looking at private money loans. I recently came across crowdfunding which I find interesting.

I'm going to target class c properties, 5 to 15 units, at least 25% vacant, at least 8% cap rate with a ROI of 16% to 25% for investors or 1.15 - 1.3% cash flow as you mentioned. What do you think? I will use this guideline before moving forward with any due diligence on the property and presentations to my investors.

I would love to work with someone who is seasoned with experience and who has cash equity.  I want to learn and willing to do what's necessary to avoid mistakes and undue risks.

Thanks again J!

Detra

I think you're right Frankie Woods.  I've been reading a lot on this topic and it appears investing in distressed properties is the way to go.  J Martin also provided some great resources and tips.  Thank you both!!

Hello BP members,

I'm seeking to put together my first multifamily deal and would like to get some feedback on where to start? I would like to buy and hold apartments from 5 to 15 residential units.  I would like turnkey properties, however, I have managed several renovation projects and would be comfortable with that process as well if the deal brings a better return.   

Any suggestions is appreciated.

Thanks,

Detra

ANuraag, everyone gave some really great information.  Every HA has different requirements and often can mislead you if you do not take the time to understand their procedures.  I have never received a Request for Contract Rent Increase notice, however, I'm not surprised.  It is important to know the rent limits and utility allowance when calculating rent increases.  This will increase your chances of receiving an approval.    The HA also uses a market comparison analysis of similar units within so many miles from your site, as well as, your rent roll to identify the rate of your most recent rental.  In Oakland, one of my units did not get approved for market rate rents. I was only approved to receive the same amount of the last rented unit, which was below the market rate for the area. This is something to keep in mind.

Always screen your tenants the same regardless of subsidy programs. Never allow residents to be treated any different and be sure to enforce all community rules. With good management. no one will know if a tenant has subsidized rents.

Sonny, I had such a great time.  OMG!  I met several real estate investors with similar goals and everyone was willing to share their stories and experience.  Thank you!  I will be attending these meetings regularly.  I learned so much just from attending one meeting -- I can't wait to close my first deal!