All Forum Posts by: Michael Swan

I have about 230 units out there.  I am always up for talking shop.   I was on podcast 238 too!! Message me and we can talk!! That goes for anybody out there.  

I love this stuff!!

Swanny

ALWAYS!! I would have at least $20,000 in reserves to be safe.  Murphy’s Law will raise its ugly head!! Not if, but when!! Been there and done that in the last nine years up to 230 front doors on my way to 500-1000 more in the next 3 years.  You can NEVER have enough reserves!!!

Swanny

Another way I quickly do a little Farmer's Math is if I really like the area and know rental comps etc... like the back of my hand, I like properties that have a GRM (Gross rent multiplier) of about 5. That way when I raise rents $150 a unit and put in cost savings items, getting us another $75.00-$100.00 a unit rent bump in a 18 month period, we can exponentially increase the value of a Multifamily property.

Swanny

On multifamily, they are valued by the NOI divided by the cap rate. So, conservative 30,000 NOI divided by a 6% cap rate gives you a $500,000 valuation, 7% cap rate gives you about $429,000 valuation, 8% a $375,000 valuation. If it was a crazy good area getting about $1600 rents or more per month at a 5 cap, it would give you a valuation of $600,000. a real high A class area ($2,000 rents per month) at a 4 cap it would be valued at $750,00".

You ONLY pay based on the trailing 12 and now with Covid you may want to go to the trailing 6 or trailing 3 months too, due to Covid etc...  

Multifamily has a lot of landmines you can step on without even know that I described in Podcast 238 as a guest.  Also, I was just featured in BP’ new Magazine too. I love helping BP members!!

Feel free to DM me to discuss the various landmines you can step on.

Swanny

Hi Hayden,

My team underwrites so many deals and 95% or greater don’t pan out on paper etc.. feel free to message me.  I have been helping educate people on BP for a while now.  I love this stuff.  I have 238 units on my way to 1000 and live to talk shop!! I was a guest on BP podcast 238 and featured on the cover of BP’s new magazine too in this past Oct/Nov issue.

Swanny

Alexander feel free to reach out for advice to me.  Send me a message.  I invest in that area too and have about 230 units right now!!

Swanny

Facebook Marketplace Free!! I get over 1000 views a week and at least 100 FB messenger replies that Bombards my PM after I send a standard copy and paste reply like this:

You need to make at least $2,400.00 a month or more BEFORE anything is deducted from your pay. NO evictions and we check your criminal background, rental history, credit, and we need pay stubs too. Thank you for your interest in becoming a resident at Cardinal MPARK Apartments in Mentor. Tell them you saw the ads on Facebook when you call. MBL Property Management - (put number here)

I Only place the ads. We should have a few available to move into as early as end of January Then, a few more end of February. We are putting about $10,000 and a lot of time into each of these apartment homes for YOU to be the first one to live in these remodeled apartment homes.

Swanny

@KC Conti

This is Swanny. Be careful and talk to as many investors as you can that invest in the areas you want to invest. I live in San Diego and invest in Northeast Ohio. There are many landmines you can step in when investing out of state. By talking to real investors in the areas you want to invest in, they have no financial incentive to give you advice and will give you honest and reliable advice.

Oh.  Man.  Good try.  
Swanny

Definitely not enough info here. At $60,000 a unit your rents per unit should be at least $900.00 a month per unit with upside to increase the NOI from there too!!

Swanny