All Forum Posts by: Marc Ende

Hi BP community! I tried to find this answer in the forum but couldn’t get the information. Sorry if this is a stupid / redundant question. Here’s the scenario:

• Bought 5,000 sq. ft warehouse for $260k in cash. 
  warehouse was unoccupied and needed full rehab 
• Invested $80k in rehab improvements 
• Secured 3 tenants that will occupy 100% of the space with 5 year leases. All are small businesses doing wood working
• Leases are rent + utilities 
• Rental income will be $4,000/month for all tenants. My only expenses will be Taxes and insurance @ $6k/year

So my question. I want to do a cash out refi and it’s only been a couple of months - how will the bank appraise the property? Will it be property purchase price + rehab investments? Will they include the rental income into the valuation? I’m trying to understand how the bank appraises commercial property, what factors are considered, and how can I maximize the value. For example, will they assign a larger value to longer term leases? Higher credit tenants? Length of ownership? 

Thanks in advance for your help!

I'm a totally newb and trying to learn so appreciate you bearing with me. I am struggling to understand how you got to net cash of $64k. If the loan amount was $172k (75% LTV), and your cash outlay (down payment + rehab) was $57k, wouldn't net cash be $172k - $57k?

I have a similar situation that I was hoping to get some advice on. I recently bought a home in the Hudson Valley, NY. I've only owned it 4 months. I put a some money into making it more desirable as a vacation rental via (airbnb, vrbo...etc) with the plan of holding it as an investment long term. It's been rentable for 2.5 out of the 4 months I've owned it with 60% occupancy and monthly cash flow of ~$6,000.  

My plans have been forced to change due to some family needs and I am now thinking of selling it. I wanted to know if I could sell at a premium to an investor/management company. I'm aware that 4 months is probably not enough time to signal consistent rental revenue for a potential investor to justify a multiplier, however I still wanted to evaluate the possibility and seeing if I could sell it.  

I'd love to hear from the community if its recommended to bring the property to market, or if I should hold for a longer period of time. Thanks!

Hi there! New to BiggerPockets. This thread caught my attention as I'm also in the Hudson Valley - in the Stone Ridge/Accord area. I've been operating a larger vacation rental and seeing huge success. Looking to buy 2-3 more properties in 2021. VERY bullish on this area as I see sustainable vacation rental growth. I'd join a club! I'm also willing to partner up with other investors to gain access to more capital! #Strengthinnumbers