All Forum Posts by: Matt Haman

I am trying to analyze my first commercial apartment building as practice. The sales price is $410,000, $93.18 sq/ft, cap rate of 6.51%, T12 NOI is $25,872, Proforma NOI is $26,689. I've gone over the expenses and income but am not sure how to figure out/what to look at to determine what I believe the property to be worth/offer price based on the NOI.

@Evan Polaski you make some good points, I appreciate it.

I guess it would also depend on how long until you move. If you take the $40k out, you wouldn’t just want it sitting in a bank account for the next 3 years. If your planning on moving next month and need that money as a down payment then it would be smart.

@Adam Lacey thanks I appreciate it. Would you say it was worth it to do apartments? Compared to SFH or multi under 4.

I wouldn’t say they are better than the rest, they were just recommended to me by some other investors I know and I haven’t had any issues. They charge $50/month per rental. 

It’s better to take the equity out of your home (if your planning on staying there and the monthly payments work for you) and put it to work making you money on another deal. 

Scenario: I live in California and am looking at apartments out of state. The purchase would be made with a LLC. The question is do I need to create a LLC in the state the apartments are located or can I use a LLC created in California. Pro's or con's if any.

I invest out of state in Indianapolis and use City Place as my property management. I have no complaints so far. 

Recently read Grant Cardone's book and want to get into apartments. Looking for others who have took this step. Currently have multiple SFH rental properties.

Recently read Grant Cardone's book and want to get into apartments. Looking for others who have took this step. Currently have multiple SFH rental properties.