All Forum Posts by: Nichole Stohler

@Ryan Barr , we started with a 4-plex when we got back into real estate in 2011.  It's a good place to begin as long as you understand the operational and other costs so that you buy a profitable property.

 https://www.biggerpockets.com/forums/223/topics/43...

@Jesse Rivera,  have you tried Washington Federal? We've used them in the past for under $1M.  Likely 25% down to start.  Once we had a track record, 20%.  

@Michael Hutchinson , rent roll, and actual cost numbers will help -- not pro forma.  You'll also want to understand any capital improvements are likely at some point in the future... as an example, in AZ, we ALWAYS look at the age of the air conditioning units.   Maintaining and repairing those can hurt profitability.   Also, what is the neighborhood like and what kind of tenants does the area attract?  What do the crime reports say?

@Ron Gosling , let's see... first properties that got us in trouble used credit card cash advances. Perhaps this could have worked. Hard to say as we didn't understand the operational costs involved and lost money. 4-Plex was a residential loan. 7-plex was technically 2 parcels so 2 residential loans. 28 unit started as owner-finance but as quickly as we could get approval we moved to a commercial loan for better rates. 50 unit was a commercial loan with the same bank that already knew us from the 28 unit. The hotel is actually a SMB loan. Each was a progression as we sold to move on so we weren't using existing properties as leverage. HELOC and property leverage are strategies we'd consider, it's just that our scenario so far has been different.

@Account Closed , there was actually a married couple who had lived there over 20 years!  They kept watch on things and whenever there was a vacancy, they reached out to their network to fill it.  Basically, a pride of ownership in that they didn't want just anyone moving in.   Amazing tenants to have!   Leases were 1 year and everyone in that complex was a dream tenant.

@David Zheng , love the questions!  We're not that fancy... no restaurant, no casino...   

You mention always dreaming of owning a big hotel.  What types of properties do you currently own? 

@Donna Jones , after I responded to Polly Wu I realized you are asking a similar question.   Being a bit new to the BP forums it seemed I couldn't edit and add your name in the mention...  here's the response:

We are currently seeing that the price per door for multi-family have actually surpassed the prices that we saw at the height of the market in 2007 right before the collapse. This is driving CAP Rates down at or below 6%. I'm not sure how long the market can bear these increases and we didn't want to get stuck buying at a premium. You make money when you buy at the right price, not when you sell. There are other places to invest that are still trending upwards for better returns in our opinion.

@Allan Robbins , great news is you have funds.  As a broker, what types of properties are you typically representing and selling?  

@Jerome Kaidor , great story!!    You mention top-of-the-market price.  Exactly what we are seeing in Phoenix now.    Are you planning to add more units?  And are you seeing the same profit-eating per unit costs in your area? 

@Polly Wu we are currently seeing that the price per door for multi-family have actually surpassed the prices that we saw at the height of the market in 2007 right before the collapse. This is driving CAP Rates down at or below 6%. I'm not sure how long the market can bear these increases and we didn't want to get stuck buying at a premium. You make money when you buy at the right price, not when you sell. There are other places to invest that are still trending upwards for better returns in our opinion.