All Forum Posts by: Johanna R.

Hi @Michael Le From the 1.8 the reno costs will either be from cashflow or additionally raised capital. My classifications of class A, B, or C aren't so much tightly tied in the age of the property bc I've always relied on renovations. So a newly renovated C property in a  desirable location B location = B to me.

Hi All,

Im really excited bc I got my first offer accepted!
Thanking Gino Barbaro, the "Multifamily Mentor" for his guidance.

Now, I'm looking to partner up with someone whose experienced w/ repositioning a MF. It would be for 50/50 partnership with your expertise and my hands on work. (Also possibly physically overseeing the repositioning for the first month)

Price: 1.8 Million
Terms:
200K downpayment
800k Bank financing
800k Owner Financing at 4.5% for 10 year
55 unit Built 1973
Location: Ocala Florida
Cap rate 7.3%
Cash on cash: 29%

Its 2 beautiful B- block garden style apartment buildings in a B neighborhood and walking distance to amenities w/ a bonus 3/2 house on the premises (that needs work.)
Its a classic Mom & Pop burned out landlord scenario w/ deferred maintenance and lack of systems thus having all the add on values of:

-RUBS

-Market value rents

-Application fees

-Pet Fees

-Storage Fees

-Carport Fees

-Laundry facilities

Looking forward to making great deals and partnerships!

Happy Holidays!
johanna

@William Huston

From an excellent article from Gino Barbaro:

"The key to unit mix is to acquire an asset that has a favorable number of two-bedroom units in relation to one-bedroom units. The ideal ratio is 2 two-bedroom units to 1 one-bedroom unit.

For example, on a 100-unit property, we like to see 66 two-bedrooms and 34 one-bedrooms.

This type of unit mix makes the asset more valuable, and will make it easier for the landlord to rent out the units as well as choose from a larger tenant base. Tenants also have the option of moving up or down a size without having to leave the property, which also benefits the landlord in that it reduces vacancies. We wouldn't discount a property solely on the tenant mix. It's only one piece of the puzzle, but a rather important one."

https://www.linkedin.com/pulse/unit-mix-rule-thumb...

Hope this helps.

@Tyler Smith

Hey Tyler, 

Good for you for putting it out there, Im looking for one myself. I think you've got some good experience to bring to the table that you can give back to a mentor. Do a search for,"mentors" here on the BP site bc I've seen people saying they'd mentor and split the deal if someone bought them a good deal or I might have heard Brandon say that on one of the BP podcasts. I got an email from the Crecco Company offering me something similar to this. 

I think though if you got into a syndication deal you wouldnt get any experience bc that would be just about investing your money.

Hope this helps,

Johanna

@Al Beahn Yah, I'm so with you, I'm more than ready to get out of corporate America. 

I really like all of the Jake and Ginos products, and though I got a lot from the, " How to make big money in Small apartments" book his classes and other products don't get such great reviews. 

@Al Beahn I second, “Wheelbarrow Profits” by Jake Stenziano and Gino Barbaro. I also just read, “How to Make Big Money in Small Apartments.”

Up next, I'm going to check out Ray Alcorn's Dealmakers Guide.

Hope that helps.

@John Woodrich Wow, is the 37K house in a really good school district?

@Elizabeth Sawyer Thanks, yes every market, every neighborhood and down to every street needs to be investigated! It is part of the fun;)

@John Woodrich Thanks for your input. In KC my house in the City worth 113k taxes = 875.00 and insurance 451.92, my 150k house in the burbs taxes =1385.30 and insurance 777.00/ yr. Both rehabbed w/ new everything, so it varies everywhere. 

@Shane Hedeen Thanks for lmk about the Avg. cost of home is higher than the other cities in the Midwest. It is a great city w/ lots of potential.

@Marc Jolicoeur Thanks I'm a NYC girl so I feel more at home in the city areas and also like the upside potential more but Burbs might be a consideration.

Hi Thomas,

Don't know any inspectors in NC but just listened to a great podcast "Understanding R.E.Property Inspection Basics w/ Wally Conway on The Wheelbarrow profits podcast w/ Gino Barbaro and they're addressing multi - unit inspections.

Best,

Johanna

I see its so its not as cut and dry as more Landlord friendly states, sounds like they will try to resolve it as best as possible erring more onto the tenants favor. Thanks@Sharon Sweeny