All Forum Posts by: Jim Hiler

Join other investors interested in multi-family real estate investing for a fun night of networking. Investors, brokers, lenders and others of all experience levels are welcome.

This group is for investors, brokers, lenders and others specifically focused multi-family investment properties. All experience levels are welcome!

This group is for investors, brokers, lenders and others specifically focused multi-family investment properties. All experience levels are welcome!

@Gina Stern  I'm helping start a meet up for anyone interesting in multifamily in Delray. Our next meeting is Nov 5th. 

See the link below for details.

https://www.biggerpockets.com/forums/521/topics/767384-palm-beach-multifamily-investor-meetup?page=1#p4508338

Join other investors interested in multi-family investing for a fun night of networking. Investors, brokers, lenders and others of all experience levels are welcome.

@Jonathan Nixon I've been focusing on Northwood lately looking at multi-family. I spend a lot of time in the area as most of my projects are near by on Palm Beach Island. It definitely has some potential as there is a lot of new development. The Rybovich expansion, Marina Village etc. However you need to be careful as areas can vary drastically block to block. Another interesting fact is that part or possibly all of Northwood is an opportunity zone.

Feel free to reach out if you're interested in connecting and discussing further. 

I would replace the heat pump unit and air handler (potentially adding a heat strip in it). If you already have the ductwork ran etc. a heat pump is the simplest way to heat and cool in a moderate climate in my opinion. If you're in an area that gets below zero a heat pump may not cut it. At which point you may want to add a heat strip in the air handler. If you opt for this just check with an electrician first because a heat strip can draw a lot of power 30 - 50 amps.

Check out this link to an article on Carrier's website.
https://www.carrier.com/residential/en/us/products/heat-pumps/heat-pumps-vs-air-conditioners/

Furthermore if you can find a local HVAC engineer or energy calc specialist to run energy calcs for you they can tell you exactly how many tons of heating and cooling you'll need based on the SF of the house, type of windows, type of construction (wall make up, floor make up, roofing etc.), how much insulation is currently installed etc. You can then have he/she run the calcs and plug in an upgraded type of insulation to say spray foam for example. That should reduce the amount the tons required to heat/cool space therefore reduce the cost of your system.

From my experience spray does a great job but it can be costly. It goes for approximately $2.50 - $3.00 per SF of roof in my area. 

That's a very open ended question. I would say neither but it all depends on your investment goals and strategies. Buy and Hold for cash flow? Buy and hold for appreciation? Fix and Flip? 

Neither market is going to offer much cash flow...however you may experience some appreciation. I would consider that both markets are very cyclical and prices fluctuate a good deal depending on the phase of the market cycle we are in... Furthermore I think all would agree we are closer to the top of the market than the bottom.

I think you need to answer a few questions yourself first before you can ask the question of which market is better...
 

@Forest Williams Yes I was just referring to the overall real estate market in general from a macro economic view. It was not say that can't have success in certain markets it just means you may have work harder to find better deals that you can BRRRR out of.

When we discuss "the market" - in can be discussed as the overall nationwide market or each local market - MSA , City, Neighborhood, etc. Real Estate operates in cycles as a whole and locally. In most areas things are on the upswing, possibly even nearing the top of the cycle - prices have increased, activity is up, demand is up and things have rebounded from the great recession however that's not always true everywhere. There are overall nationwide factors that affect the market - for example mortgage rates, lending programs, the current economy doing well - meaning more people have the money to buy houses and more investors have money for investing, demographics etc. There are also very local factors that affect each market, meaning the local economy, job growth, demographics, local lending, insurance costs, property taxes etc. and these have an equal or greater affect on prices, inventory, rental rates, etc. in each respective market.

For more info on the market cycle and what stage some of the major cities are in check out this article below:

https://joefairless.com/what-stage-in-the-market-cycle-is-your-target-apartment-investment-market/

I agree with @Frank Geiger talk to a local builder and/or even better an architect who has experience with Multifamily in the area. They should be able to help you determine how much you square footage you can build on the lots. Then you need to decide how big your units will be to determine how many units you will build. You will need to research your market and decide which type of product has the most demand. I.e. beds/baths, type of finishes, amenities, upgrades etc. From there you can run your proforma/underwriting just like a standard multifamily purchase.

When underwriting you may be able to reduce standard maintenance and cap ex reserves a bit due to dealing with a brand new product.

I know in my local area basic multifamily construction starts around $100/SF. Check with your local builders to see what the cost is near you.