All Forum Posts by: Krisleigh Hoermann

@Jennifer Pauyo investor from Dallas here! I recently read that women investors/developers only make up about 9 percent of the industry’s population. We can change this!

@Austin S. Pogue like everyone else, we aren’t seeing 10% cap rates in Texas in decent cash flowing areas. They are great areas and commercial properties all over Texas and in the past we’ve been resilient during market crashes. You’ll have to be more flexible with the cap rate though. Too many businesses are moving HQs here so the market is hot.

@Krisleigh Hoermann wait! Just caught an error - my vacancy and maintenance only included a month. Yikes!

NOI: $50,901

Cash flow: $2,093

Hi everyone! Analyzing one of my first deals and would love a second set of eyes. I'm a bit and hold, value add investor. What are your thoughts?

It's a building on the main street in a suburb with a ton of foot and car traffic. The retail/multi-use building currently has two tenants (one has been there for a decade) and one additional vacant space. Current tenants just resigned new five-year leases with $300 monthly increase each year. Cap rate for the area and type of building is between 6-8.

Monthly gross income (total): $5,500

Purchase price: $724,900

Taxes: $9,441

Insurance: $5,199

No PM

Vacancy: 5% $275

Maintenance: 10% $550

NOI: $59,976

25% down, amortized over 20 years at 6.5% (being conservative, although think I'll come in under this)

Cash flow: $2,103.39

What am I missing or miscalculating?

@Andrew Smith Dallas-Ft Worth area

Thanks, everyone. Really great thoughts here.

He wants a first right of refusal in case I decide to sell the property. I'm not, but it sounds like he tanked the deal with the previous owner (I always want an exit strategy available if I need it). I'm more concerned with not having his brother listed anywhere or acknowledged for insurance.

New landlord here! I recently acquired a multi-use property - half retail and half residential for the business owner. I recently discovered our tenant is lending the residential portion to his sibling. I'm OK with it (he has been a long-term tenant of the property), but want to make sure we're covered too. He's currently on a month-to-month lease and won't sign a new one without the first right of refusal. Should I send a letter stating that I am aware of the change in residence and his sibling is bound by the same terms? Do we need to ask his brother to sign a sublease? Any other thoughts?

There are pockets all over DFW. I'm in Collin County, which is booming with all the businesses moving to the area. The market is hot right now, but deals are still around (although, rarer). Definitely check some of the smaller suburbs like, Wylie, Sachse, Rockwall, Farmersville... you might be able to find some cash flowing properties that are worth investing in.