All Forum Posts by: Michael Trueba

@Dolly La Salle I think, personally, it’s incredibly important to look at future assumptions and understand the risk/return. For historical data look to operating statements for specific properties. If it is looking for historical appreciation data, etc, look at real estate resources that outline historic average appreciation, etc.

@Dolly La Salle It kind of depends on your market, age/class of the property, type of property, deferred maintenance going into it, etc. Vacancy at 5% is usually a starting point for us right now, we tend to stress he vacancy up to 10 and even 15% at times. Repairs and maintenance are likely between 3-8% depending on age of the property etc., I’d say capex is the same. For future assumptions I am a fan of looking at historical averages and projecting out. Accounting for anticipated capex and increases if already known. Analyzing tends to be a mix of analytical data and finesse with the numbers based on the property, if that makes sense. Anyhow, reach out if I can help. Mike

@Theo Hicks thanks for the help.

@Owen Dashner, thanks! I’ll send you a message.

@Tyler Kastelberg thanks very much for the help

@Sam Grooms thanks that helps. Do you stick mainly to the Phoenix area? I’d love to hear how the market for multi family is there as compared to some of the others we have looked into.

@Sam Grooms makes sense, I guess mainly I am wondering from a snap shot 10,000 ft level what an overall picture of a market may look like. I’m very comfortable underwriting once a specific property has been identified. I know its dIfficIlt to speal in ”general terms” when so much is dependent on a variety of factors. I guess just looking for a general range. Do you do much in the Omaha/Lincoln metro area?

@Stanford Neal Mead are you still needing help on this? Let me know and I’d be happy to work through some quick analysis and see if I can help you out.

@Mike Dinh do you have a proforma template you are currently using for your analysis? My partners and I have a couple pretty good and simple ones that can help if you don’t already. Feel free to message me if I can help in any way.

BP Members- We are researching markets and have targeted a few to begin deep diving into for multi family property acquisition. We are targeting the B-C asset class with 5-25 units. The ideal property would have a value add component (big surprise I’m sure!). Anyhow, my question is an attempt to get a sense from some of you with existing properties in the Omaha/Lincoln, NE metro market of average expenses. In the Boise,ID metro we generall use 40% as a general quick analysis plug. 8% for property management, 5% for replacement reserves, 5% vacancy, etc. Do these general guidelines seem to hold true for the above mentioned market as well? Thanks for your help!