All Forum Posts by: Gino Barbaro

@Jeremy Hartwig

You are missing a lot of important data, such as median income of the area, rent comps in the area, what current values are.

You are buying on actuals, but in many markets that have low supply and have a lot of demand, it makes it difficult buy based on actuals. It comes down to what your pro forma is, and what lenders are willing to lend on the property.

75k per unit for 550 in rents in Dayton is probably over valued, especially if there is deferred maintenance. Now if rents can go to 1,100, different story.

Value is based on Net Operating Income, and lending is based on Debt Service Coverage Ratio.

Gino

@Celli Mowery

we were in both Louisville and Lexington. We exited both markets, louisville because of mandating section 8 housing after Covid and just the way they handled evictions and pyments during the pandemic. Lexington is a weird market with low occupancy, 90-92%, and there aren't many assets in the market. There is a barrier to entry, and the city is pro business, but our market had much better metrics.

Lower entry points should not factor into getting in a market. There's usually a good reason why the entry points are lower.

@Jerry Zhang

You can also put a lien on one of your assets for a short period of time. If you don't pay he gets the park back and your asset.

That would put me at more ease, knowing that you have skin in the game, and are going to pay me.

Gino

@Anthony Zotto

I don't think either will have a big impact on multifamily, unless they drop rates and stimulate demand. I would listen to a podcast I did with housing economist Jay Parsons. He's a really smart guy when it comes to supply, demand, rent control, and overall investing

@Kobe Carr

It's one of the largest markets in the US, and if it's your backyard, then I would defintely start there

Gino

@Sandeep K Mamidi

Welcome to the dark side!!

Multifamily is a long term game, but well worth it

Gino

@Vhernadette Sasing

I would look into finding an excellent operator and invest with them passively. Find someone who needs capital for their business and partner/invest with them, if you don't have the time

Gino

@Sandra Ho

I think people who have tendencies or habits tend to repeat them. If they're late multiple times and or declared bankruptcy, then I would expect them to continue, unless they can provide some clear explanation.

If you're having problems renting, it is either a pricing, condition or marketing issue

Good luck

Gino

@Sharad Bagri

These questions are best left answered by an entity specialist. If you DM me, I can refer you to who our community uses. The only answer you should be getting from laypeople is IT DEPENDS. It depends upon so many factors, that an attorney needs to spend time mapping it out with you

Gino

@Brandon Morgan

I don't see why you wouldn't classify it as an investment. It's an asset, although you may not derive any yield from it. It's similar to buying a stock with no dividend. You aren't getting any payments, but you do have ownership and any equity upside.

Some markets do not produce any chas flow/yield.  It really depends upon what you're trying to achieve

Gino