All Forum Posts by: Nate Wilson
Nate Wilson has started 10 posts and replied 59 times.
Post: Where to put my money
- Weare, NH
- Posts 59
- Votes 23
@Craig Brooksby
I just stumbled upon this topic and I can see your arguement about buying and holding. I am a new investor and thought my money might be better spent lending to investors rather than buying a rental. I would love to hear more about the processes of lending out money, loan terms, RIO, and how much money you need to get started. Also if know where I can research this topic more would be greatly appreciated.
Post: 5-Condos Deal Analysis. What Would you do?
- Weare, NH
- Posts 59
- Votes 23
Originally posted by @Thomas S.:
You now know the real value. If you can not convince the seller to drop below $350K it's a deal you need to walk away from. I would also be expecting a discount for buying all 5 units. Bulk price 60K each. What he thinks they are worth is irrelevant and paying more than they are worth simply because they will still cashflow is irrational thinking.
I couldn't agree more. I am looking for a good deal. I am surprised that the numbers look good at 425k. I want to make sure that I have equity in the property. Thanks for the response.
Post: First time investor in New Hampshire multifamily.
- Weare, NH
- Posts 59
- Votes 23
Originally posted by @Jim Froehlich:
@Nate Wilson and @Joe Pearson, I think the advice from @Axel Ragnarsson is great and what @Al Pat points out, you are still way less likely to fold than if they were SFRs...but a Quad-Plex 1/4th empty is much better than a Duplex half-empty! Manchester is very competitive and people are over-paying everyday at potential risk.
Regarding appreciation - the best advice I've received is DON'T count on it! ...with multi-units, each deal is specific, so if your strategy is value-add, then you have to buy really low and really distressed (off-market) in order to force appreciation. But in all other situations, I would not factor in appreciation and only count on "what happens during depreciation?" If you're young enough (or flexible enough) to "house hack" by living in one of the units while forcing appreciation in the others, then that strategy has tons of benefits in terms of getting started.
Lastly, I would recommend teaming up with a partner in whatever area you're looking at and decide if there's a good fit. People are pouring thousands and thousands of marketing dollars into Manchester area daily in hopes of attracting off-market distressed properties and most of that is for single-family; meanwhile Brokers are giving pocket-listings to the experienced guys. That leaves a small margin for the rest of everyone else to fight over the scraps (without overpaying)...BUT, assuming you don't have a marketing machine or Broker in the family...if you have something else viable to bring to the equation (ie. sweat equity or $$$), then people are willing to sometimes partner.
Good Luck!
Thanks for the advice Jim. I have been watching the market in Manchester and in the properties with 5-7% COC returns seem to be selling within a week. In my opinion you would be better off in the stock market with those returns. I know I'm not counting appreciation but I see that as a bonus. I realize in order to find a property that has a more acceptable COC will be hard to find in this market.
Post: 5-Condos Deal Analysis. What Would you do?
- Weare, NH
- Posts 59
- Votes 23
@Michael P.
I did a little digging and found out that similar units are selling for 60-70k each. Meaning I would be paying way to much. Market value would be around 300k-350k. Obviously the cash flow would be even better. What do you think I should. Things don't seem to be adding up.
Post: 5-Condos Deal Analysis. What Would you do?
- Weare, NH
- Posts 59
- Votes 23
@Michael P.
Do you think I missed anything in the calculations?
Post: Hard money lender New Hampshire
- Weare, NH
- Posts 59
- Votes 23
@Ann Bellamy
What are your terms for your loan? How much do you charge for interest?
Post: First time investor in New Hampshire multifamily.
- Weare, NH
- Posts 59
- Votes 23
@Joe Pearson
I was just looking at that property. It may have some potential.
Post: 5-Condos Deal Analysis. What Would you do?
- Weare, NH
- Posts 59
- Votes 23
@Nate Wilson
I forgot to list repairs for $278 which Is included in the 4681.
Post: 5-Condos Deal Analysis. What Would you do?
- Weare, NH
- Posts 59
- Votes 23
I found an investor who is looking to get out of the business and wants to sell 5 condos. He wants $425,000 for the 5 and generate $5570 income. 2 of them the rent could increase a little $50 each. They are all rented at the moment. Here is the break down
Monthly Income: $5570
Monthly Expense:
Taxes: $593
HOA: 1250
Vacancy: $278
Cap Ex: $278
Managment: $445
Mortgage $1,559
Total: $4,681
Monthly Cashflow $889
Cash on cash return of 9.61% with 25% dp
He said the HOA fees are increased this year and will go down next year for a total of $1000. This calculation is with the increased fees. HOA covers insurance, water, garbage, sewer, and snow. If the HOA fees drop that will put me at $981 monthly cash flow and 11% cash on cash return.
What do you guys think? I do plan on talking him down and hope to buy it for around $400,000. Did I miss anything?
Post: Steady to declining University admissions and student housing
- Weare, NH
- Posts 59
- Votes 23
Originally posted by @Megan Frank:
@Nate Wilson We did not end up investing in Plymouth or student housing yet. We house hacked a duplex in Rochester instead and plan to convert the 2 bedroom unit to 3 bedrooms to add value. Did luck!!
Thank you for the update.