All Forum Posts by: Metodi Haralambiev

What part of town is this project?

If the job is so extensive, I would stay away from smaller contractors such as a guy with  a few helpers.

Did you try tumbtack, home advisor or Angie's list? I would start there and probably all 3 at once. They have the options to have companies bid for the job, so you know they are free and can handle it.

It would be nice to keep this post updated and share opinion on specific contractors you encounter.

Good luck!

I am helping a local friend to analyze his first deal in Birmingham, AL.

For some reason, or maybe because I am searching from out of state we can't find the following information:

1) official website to check the current TOTAL millage rate (school, county, local) in the city of Birmingham or actually for any municipality in Jefferson county.

2) the county website link where we can find any property current assessed value, owner's address etc.

Google keeps kicking me to Birmingham, MI and am getting frustrated :-(

If anyone can help with exact links, that would be greatly appreciated!

Those are my concerns. Of course I can't see the particulars and the nuances of the area this property is located, and those intangibles sometimes are important. 

1) vacancy rate is on point if you or the management company has a solid track record with 5% in this area. Should check

2) for a 60y old property, the capex is very low. I would suggest to plan for 10%+ not 8% (unless recently rehabbed and with new roof for example)

3) my biggest concern is maintenance. Multifamily units tend to have a bit higher maintenance than single family and even if you are getting a fully rehabbed property, allocating just 5% doesn't seems to be reasonable. I am yet to meet an owner who isn't in realty spending 12-15% for maintenance on multifamily building.

The deal might be still worth doing anyway... 

Drop a line and let us know if you got it or pulled out

Good luck

@Matthew Smuts

This is very good to know. Can you tell us who is the new contractor you hired and did you find it on Craigslist? Thx

@Michael Craig as this being a non owner occupied property, if starting with refinancing first, doesn't this mean the bank will look into his personal ability to repay the loan?

I do know banks can look for what can be expected as rent, but that usually applies for established investors with track record.

Thank you