All Forum Posts by: James Syed

@Account Closed

Yes, owner did pass away. It's the family. I have been talking to them. They have come to realize that it's not worth anywhere they were asking. My guess is, some of the family members are disagreeing. 

Will be updating as soon as I hear from them.

@Account Closed

Welcome to BP. 

Seller seems to be slow responding. I stopped contacting him after Thursday last week as I didn't want to sound desperate for this deal. 

He did realize that he was asking way over, so he came down. Still waiting.

@Account Closed

Thank you, Mike. 

I will keep that in mind. Will be updating on this tomorrow morning.

@Account Closed

Welcome to BP. 

I love Net Income X 59.01 formula as I have never used it before, however it's amazing how useful it is. I tried it with different numbers and it has shown to be very valuable. 

Seller called me today and is asking for highest and best. I am a little nervous, but I have to respond by tomorrow morning.
@Account Closed

@Account Closed

Thank you for commenting on my post. I see that you are coming off GRM. That is good rule of thumb when evaluating apartment buildings. I have seen mostly (in my area) is 6.25 - 6.50. Keep in mind, I am in Midwest.

I haven't analyzed "medium price - to - net income" formula. Now when you say "multiply property's net income by 59.01" did you mean property's annual income X 59.01?

Welcome to BP. 

It will be very difficult to get a commercial loan below 80% LTV. They want your skin in the game.

Hope it helps.

I forgot to mention taxes in my last post.

About property taxes, I don't know what I could to lower them. 

@Ben Wilkins

Thank you for sharing your thoughts. 

I heard back from the Seller today. They got done discussing with their attorney. 

I will be updating in a couple of days as to how they want to proceed. I told them that I need P&L in order to make a serious offer. 

I assert there is room to increase $50 per unit rental income, however, one will have to update the apartment in order to get it. 

Yes, I see some expenses that are unnecessary and could be eliminated easily. 

Will be updating soon!

Welcome to BP. 

@Joel Owens

Sorry for late response. 

Checked with the water dept, they raised the water & sewer rates 2 years ago. Taxes are based upon $345,000 market price (seems to be tax rate is high)? 

Seller's talking to their attorney. I will update the price situation by tomorrow (hopefully). 

@Joel Owens

Thank you for your thoughts again. 

Original Seller has passed away  and his family has no wishes to continue own it and they want to cash out as I have understood them. 

I would like to get at 10% cap rate, so as per your rough analysis NOI seems to be around $40,000 so would it be good idea to shoot $400,000 may be?

Keep in mind water and sewer is paid by the owner and I checked with the local water dept and they wouldn't share specific, however it's about $50-$75 a unit for water and sewer. 

What do you think?