All Forum Posts by: Lethorn Irving II

Mostly single family 2 & 3 bedroom homes. I try to stick to west side or north side of town. You?

@David Hall

Thanks for the response. I appreciate the insight and that sounds like very sound advice!

@Patrick Snyder

I understand. I mostly just stick to flips as well. But I’m trying to add some apartments to build a portfolio over time. This is likely not a deal that will work. I also don’t think I’d put that much cash into a deal this small, so I’m certain you and your network wouldn’t want this one.

@Patrick Snyder

East Lansing- I agree that he's overpriced a bit. It has been listed multiple times and almost sold a few times. But the seller isn't very easy to work with. He's under no pressure to sell, but is willing to if someone pays his price. What kind of IRR and COC do you generally expect on small multifamily deals like this?

@Patrick Snyder

No, the seller isn’t open to lowering the price. I wish he was, because the deal would be done. But then again, someone else probably would’ve had it already. He knows what he has and he’s in no rush to sell.

Blaise, thank you for the thorough and detailed response. I have spoken with the city and at first they said I couldn't do it because, per code, you need a certain amount of sqft of lot space per unit. However, I looked up the code and found out that they were mistaken in their number- that their stated requirement didn't apply for this property, and that there is actually enough sqft per the actual requirement in the building code. That did make me nervous to deal with them though- and your experience tells me that it would probably end up being a hassle. The deal still pencils at about 20% IRR without the conversion, however with the risks associated and price, I'd prefer to do it only if I could navigate though the conversion, which would require partner(s). That would achieve an estimated 31% IRR. I can't afford to let my $ sit in the deal at this time, even if cash flowing which could happen without the conversation. So if this sounds like a tough sell to investors, I suppose I'll have to pass for now and revisit it later if available,

Hello everyone, so I found an off-market 7 Unit apartment building (seller financing) in the greater Lansing area in Michigan that is set up in a way that appears it can be converted into 8 units fairly easily. There are six 1bd units and one 2bd unit. The 2bd is 2 story unit that can be split in a way that would make the property look like 8 uniform units (Its a 2 story building with a 1 bedroom unit in each corner. I have never gone through the process of adding units to a property, but the property is in a really nice neighborhood. The subject property is the only eyesore on the street, it appears to need mostly just cosmetic interior/exterior upgrades, and it basically pencils out at 7 units-- with an 8-unit conversion it will allow a refinance of most or all of invested cash within 2 years. Does anyone have experience with similar projects? Would you invest in a project that depends on being able to split a unit into two? I have completed a bunch of SF flips and rented a couple of properties (SF and 4-unit properties) as well, however this current project is a new area for me. My vision for the property is clear (my strength), however I am lacking the commercial multifamily experience and deep pockets to jump in, so I'd love some help as I see good potential for this property. Any feedback is greatly appreciated.

Hello everyone, so I found an off-market 7 Unit apartment building (seller financing) in the greater Lansing area in Michigan that is set up in a way that appears it can be converted into 8 units fairly easily. There are six 1bd units and one 2bd unit. The 2bd is 2 story unit that can be split in a way that would make the property look like 8 uniform units (Its a 2 story building with a 1 bedroom unit in each corner. I have never gone through the process of adding units to a property, but the property is in a really nice neighborhood. The subject property is the only eyesore on the street, it appears to need mostly just cosmetic interior/exterior upgrades, and it basically pencils out at 7 units-- with an 8-unit conversion it will allow a refinance of most or all of invested cash within 2 years. Does anyone have experience with similar projects? Would you invest in a project that depends on being able to split a unit into two? I have completed a bunch of SF flips and rented a couple of properties (SF and 4-unit properties) as well, however this current project is a new area for me. My vision for the property is clear (my strength), however I am lacking the commercial multifamily experience and deep pockets to jump in, so I'd love some help as I see good potential for this property. Any feedback is greatly appreciated.

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