All Forum Posts by: Eric Berkner

I hear of many investors doing seller financed deals, but where do they find them? I'd imagine these are off market properties they cold call on?

I recently bought a property off the MLS but am not sure how and when to ask for seller financing..? I'd imagine the agents dont have an incentive to ask?

Just curious how long it takes for CAP rates to rise as we recently saw a huge increase in interest rates. I am hoping to get into small multifamily and am hopeful the rising cap rates may help find deals.

Anyone here successful in the value ad model for smaller multis (2-8 Plex)? I'm in the Portland market trying to find value ad deals using my own capital with good success but finding this a slow way to scale. Anyone here doing this in California, Washington, Oregon, etc. where the cap rates are higher, deals are harder to find, etc.?

It all depends on how the property is performing. If you are making good cash flow now then there is no reason to sell it, just hold on to it. With a 150k loan, interest rates increasing shouldn't effect the monthly payment that much, it should go up but not that much IMO. The problem is that if you sell it, you now have 2 issues. One is the broker fee the other is the taxes are now due which most investors 1031 into another property, are you ready to do that?

My gut feeling is that you should look for ways to improve rents as a way to hold on to the property. 

I am no expert but nobody has replied yet so I thought I'd start the convo. Hope this helps

I am underwriting several deals that are 72, 74, and 84 units. I'm assuming these all need on site managers? The existing T12 shows 24,000$ for a "property manager" however that seems too low for an on site manager. My question is, should I be underwriting a higher budget for the property manager, more like 50-60,000/year?

Watyer is short for "water" :)

Is rubs primarily for water only? I am looking at a property that uses a ton of gas, it has boilers, and is in a cold climate. Hoping rubs can be used here but from my research it is only for water. Anybody know?

Excellent. Thanks for the help and thanks for sharing!

Yes... I understand that when you raised rents, the LTL went up. Now from November to December, your LTL shrunk considerably but I'm not understanding why, because most of the 35 units were then renovated? The total rental income went down between those 2 months. Those units must've been sitting vacant or you renovated them while the tenants were inside of them?

Thanks for the help, I'm more excited to see these kinds of numbers and am very inspired to see what is possible in this MF space.