All Forum Posts by: Eva Salas

Hi,

The trend in Silicon Valley, in the pricier buildings, is toward in unit W/Ds. I'm wondering a few things, but mostly has anyone done this and how much more (in %) they were able to get for their units after installing them? 

There is a hassle factor if/when they go on the blink.  Also, there would be one less usable closet for my resident. But aside from that, the real question is: How soon could I potentially make my $$ back? 

Your thoughts appreciated! 

Hi to Nick and wife! I've barely been able to get off this site since I became active here, except, of course, when I'm actually working on REI!

Hi, I'm not in Philadelphia, and don't know if you have rent control laws, which many times prohibit a 30 day notice to quit without cause. But at a glance, sounds like it would not be a problem. Give him notice right  AFTER he pays rent on or near the first of the month! But check with local laws first. 

@Barbara G. Yes those were questions I would ask the agent before going into contract. Sorry for the confusion. 

Depending on the size of the building, a realtor may or may not send out a comprehensive sales package with rents, expenses, and cap x included.  But if a buyer wasn't interested enough in my building to go into contract, I wouldn't be inclined to show him/her my rent rolls, etc.

When I say delve deep, part of that means finding out exactly who the tenants are along with individual rent payment history, any evictions,  receipts for cap x, etc. 

Going into contract gives you access to all these things and of course you have contingencies in place if you don't like what you see. 

Are you talking NNN with tenants in place? I had a great talk with

@Joel Owens  I found him to be a great resource! 

Appreciating. Historically low inventory on the market, both in SFRs and multi family in San Mateo County. Bay Area as a whole appreciating markedly. 

Well, not knowing what you do ask, it's hard to answer what you might be missing...When you get a property under contract you can delve deep into the particulars of the building and its finances.  I might ask what the historical vacancy rate is for the building, what the general demographic of the tenant base is, what capital improvements have been made in the last few years, etc. Are rents at or below market? A good agent who specializes in multi family will know the cap rates at which other units are selling for in the area and what the rent trends are. 

What are some of the questions you do ask? 

Define good deal? What cap rates are you looking for? Generally, they are lower here, at least in the area of the Bay Area and surrounding areas. I do know of some multi familes that have not gone on the market yet. How many units might you be looking for? 

Have u asked a potential lender? They will be happy to tell u.