All Forum Posts by: Theo Hicks

If the $650 properties are in the same condition and have the same level of upgrades as the subject 4plex, you can simply raise the rents without having to perform renovations. The current tenants may balk at a $200 increase, so you may need to re-rent to someone else.

If the $650 properties are upgraded, you will need to upgrade the units first.

To increase the property value, you either increase the income or decrease the expenses. Ideally, you identify ways to add value prior to even submitting an offer on the deal, because that is what your offer price is dependent on.

The most common way to increase the income is to increase the rents. You increase the rents by either investing money into improving the interiors/exteriors or, if the units are under-rented, increasing the rents to market rates. 

It is really hard to offer specific advice without knowing the current state of the property. But I would look at surrounding properties that have similar interiors and see how they are renting. Then, look at properties that have have upgraded interiors and see how they are renting. Obviously for the latter, you will need to invest money into the units, so you will want to determine how much it will cost to get the rental increase, thus getting an ROI.

Hi Justin,

I've spoken with a lot of lenders and they've never asked me if I had an LLC. They will want to know about your business plan, the property's financials, and your experience.

@Chris Tracy provided solid advice. Use it as a way to strengthen your relationship with the broker. If you just ask a bunch of questions and never respond to their replies, that's fine and may or may not negatively affect the relationship. But if you provide feedback on specifically why you are passing on the deal, you are perceived as more credible in the eyes of the broker and they will have a better understanding about what you are looking for.

Are you asking if you can acquire a property with an FHA loan and not occupy the property? Or are you asking if people purchase 4plexes as investments rather than owner-occupied.

If the latter, all the time. If the former, you are in violation of the loan terms.

Hi Christopher,

I always recommend that aspiring syndicators create their own cash flow calculator. You can uses Blank's calculator as a guide, but you will learn so much more about underwriting by going through the process of creating your own.

Hi Joseph,

There are countless ways to find off-market apartment deals, as well as countless threads that list out strategies. Just search "find off market deals".

One unique strategy is to go to LoopNet.com, create a list of local brokers, call/message them to introduce yourself and your goals, and then follow-up every two weeks with updates on what you've been doing and ask if they have any deals.

Unless you are a veteran, cannot secure a 0% down loan from a bank. 

I would list your vacant unit on all the online rental listing services: apartments.com, craigslist, zillow, trulia, etc.

You can also hire a real estate agent to rent your unit. There are also locators you can work with.

You will need to work with a securities attorney to put together a PPM.