All Forum Posts by: Matthew Ringer

@Richard Capers Jr Thanks for the input. Agree expenses seem low. I’ve got rent roll and financials from the developer. I know enough about the rental market that the income looks reasonable, but expenses not so much. Right now I’m negotiating on what I’ve been given and then will retrade if during diligence actuals are materially different.

@Bjorn Ahlblad Thank you. I’ll run it at 40% and see how it shakes out.

@Richard Masino Great call out. As I look at the taxes/insurance they look really light. May be from when they were paying tax on the land. Would be considerably more now that it’s developed. Thanks for the feedback.

@Tyler Kastelberg Thanks for the input. I'll model it over 10 ramping the OpEx to more typical levels and see if it holds up. 

@Tyler Kastelberg, my thoughts too on the OpEx. I've never done a new build before, so could understand some lower maintenance cost. I've got my property manager down there looking at it. I've not done a deep dive diligence yet, but from the financials I've seen nothing smells but overall the expenses do seem light. 

Looking at a 27 unit complex in SW Florida. Two and three bedroom town homes, built in 2016 & 2017. Have the rent rolls and financials since inception. Fully rented with average rent of $1550. Vacancy running around 5% (limited operating data but this is in line with market for the area). Property is in a great location, close to employers, the beach, shopping etc. Would attract retirees and younger professionals. Expenses have been running 25% of gross rents. ~$483,000 gross rents, ~$123,000 annual expenses (includes prof mgmt @ 10% of rents). Off market buying direct from the developer who wants cash out to move on to new projects. I've reason to believe we can close the deal in the $4.5-$4.75M range. Going in cap roughly 7.5. Market caps for the area have been in the 6-6.5 range and at the lower end for new build, in strong locations like the subject property. Conservative market value estimate $5.5M. Property should easily support debt at 75% LTV. Would be looking to raise ~$1.2M of which $500k coming from personal funds. I'm based in Portland, Oregon but have other properties in SW Florida and have been invested in Florida for almost 20 years. Also have people on the ground in Florida I've known for several years, done deals with, and trust. So even though I'm out of state this is not outside my core competence.

Thoughts on the deal? 

Anyone here have experience in the Pasco or Hernando county area in Florida? I’m invested farther south in Florida but have interest north of Tampa. Im long term buy and hold so would be looking to network with like minded. Thanks! Matt