All Forum Posts by: Kurt Jones

Give us a little more to work with. So far all we have is rents and an asking price. What about the expense side?

Welcome to the jungle!

You’re asking all good questions most of which can be found in the BP forums and resources. Now a good time to just educate yourself and get your ducks in a row so you can make a reasonable offer on a good deal when you find one.

The devil is in the details. Let's see what is really in this thing

“Grandfathered?”  Usually not a big deal. Look at the leases and their expiry dates. FL is fairly landlord friendly so as soon as the lease expires you can present them with “your” lease with new terms (rent, utility responsibility etc).

The only thing I will be careful of is the current owner “stuffing” the units with new tenants for you. Often times they will grab easy upfront money knowing they don’t have to deal with a marginal tenant in a couple of months when they offload the property to you. I have previously asked sellers not to rent the vacant units during the contract period. 

Multifamily lenders want to see you with anywhere from 15%-30% down usually (May vary). Also they usually want a track record in real estate before they hand you 6-8 figures in $$

Simple answer, get a track record in multifamily. It’s a different animal from SFRs. Investors want to see your experience before dropping money into your lap. Congrats on thinking big!

Others on the thread have addressed most glaring concerns. Honestly not a real I would invest in with my own money.

Agree with @Greg Dickerson. Doing some hard money lending on the Atlantic side of FL and looking for 10%-ish and 2 points in our area with same stips as above.

 In our experience, they are just like any other tenant class. Meet them screen them and make a decision. Some will be good some may be bad but that’s part of the residential rental business 

Shouldn’t be an issue at all. I have done similar in the past with no issues. But most definitely check with your 1031 exchange provider