All Forum Posts by: Samson Kay

I'm excited. The seller has already stated that he would entertain a Master lease.

After walking down the property and neighborhood I decided that this was the perfect storm for this strategy! A subrenting building (23 units) with room for rent increases. A motivated out of country investor. A Negatively cash flowing building. A building with only minor cosmetics needed on the interior.

Here are some of the numbers:

Current NOI/Projected NOI = 55000/108405

Expenses = 95,648

Asking Price = 1.05 Million

Market Cap Rate for the area = 12-14%

The asking price is really high considering the negative NOI. But I believe that the seller was using the building to report a loss on his more profitable investments. Which is why he decided to keep the rents so low.

Wish me luck!

I'm checking out the property on tuesday next week. It appears to be next door to the high school. But it is in the more northern part of beech st.

@Ann Bellamy what do you think of that area? Seems like you are familiar with it.

From the street view of google maps it looks like a nice enough street. I'll start doing some night time drive bys this week.

Nice,

let me know what you think of the book.

If anyone else has some insight in the mean time. I'd appreciate it.

THanks

I'm interested in a 20+ unit apartment building that is owned by foreign investors, I through out the idea of offering a master lease with option and they said it would depend on what I offered... I think potential gain is huge.

Has anyone locally done a master lease with option deal? How did you structure the deal and how did you present the offer? Is it unheard off to ask for a 5 year lease?

Thanks in advance!

@Sam Leon

Funny, My brother is named Leon.

I don't know if you have considered this, but I'm told Town houses may be more difficult to sell if the tenant to owner ratio exceeds a value. Banks may not loan on it if the primary people living in the condos are all renters.

welcome! Lots to learn here in bp. Hope to see you at one of the events!

that helmet law is the reason I ride in NH in the summer!!

Property Taxes in NH are huge!

But again, I wouldn't be looking at this property if there wasnt a huge Upside. Owners are out of country investors. And they have been using the property for the tax loss purposes only. Could be great if the area is considered a "B" area.

Can you gentlemen shed any light on what the local cap rate is for 10+ multis in the "ManchVegas"?

Familiar with Beech St area?