All Forum Posts by: Michael Chilton

@Aaron Ehrlich

That's a great area to be buying right now. You should see good appreciation. Here's info on tax abatements: 

https://www.dsm.city/departments/community_development-division/permit_and_development_center/tax_abatement_information.php#outer-503

@Jaysen Medhurst

Sorry- I wrote a summary I thought would be posted with the original post. They will be NN, and the retail tenant will manage the property. No lawn, just a small sidewalk out the front and back doors that the commercial tenants will be responsible for. There may be house electric for the second floor hallway. No municipal garbage in this town. Will be on tenants to arrange. This is a thriving, but small town of 8500 in the Midwest. Closest “city” is under 100k people and an hour and a half drive. Realtor told me there’s not a standard cap rate. I don’t know what to think of that.

You want to know what their NOI is and mine will be? They have a vacant ground floor right now, so it's not good.

@Jaysen Medhurst

Thanks for the reply. This is for a commercial/multi fam property. The value add is in additional rent. They’re currently bringing in $1100 from two upstairs apartments, with a vacant main floor for retail/ office that they expect to rent for $1100. I will rent the retail space for $1300, and the office behind it for $500. Management fee is only for the top units, that’s why it is 5%. As for the loan rate, I don’t know if I could do better rate for mixed use. You think so?

@Joel Owens

What about percentage of money down for mixed commercial/multi fam? Looking at a property with retail and office on the main floor, and apartments on the second floor.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Paul Bloomfield Thanks! I didn’t use a realtor at all during this transaction.

@Michael Wagner Would a hard money loan achieve the same result as paying cash?

I’m looking at a self storage property that is listed at a 12.8 cap. I’m pretty new and haven’t done a refi yet. If that rate undervalues the property, is it possible to find a bank and do a refi at the market cap rate without adding any value to the property?

@Matthew Hollister Nice! Taxes are the biggest problem with Iowa rentals. It’s one of the most important factors when I analyze a deal.

@Austin Davis Absolutely. I’ve wanted to do this since reading “Rich Dad, Poor Dad” over 12 years ago. I don’t think it will take as long to get the next one. I’m already searching.