All Forum Posts by: Nick L.

@Mindy Jensen Good advice... a couple hours before the auction I did my due diligence with the ciy. I found that the entire house had been flooded last year with water spilling out of the windows. I would not have known as the house looks normal from the outside. Somehow a free truck didn't look too atractive after that information!!

@Chase Gochnauer

You'd likely have to subordinate your priority to the tenant's lender. You would also want to make sure that all improvements revert to you at the end of the lease.

http://www.propertymetrics.com/blog/2014/08/04/gro...

http://www.lorman.com/resources/adding-value-befor...

I would be concerned about environmental contamination. Also zoning or other local govenrment concerns that might restrict future tenants.

@Brian C. said), cost overruns and unexpected problems.

With margins that thin I would also keep some liquidity on hand in case your NOI dips below your debt service.

With cap rates that low and interest rates on the rise, you are dangerously close to negative leverage territory.

I'm with @Douglas Dowell. Berges, Gallinelli and Lindahl are the top three general RE investing authors. If you want to get deep into financing there are some great textbook authors out there but for a general audience Berges and Gallinelli have the best books.

If you want to take a course you might consider getting a real estate license in your state or even getting CCIM education. Just stay the hell away from the gurus!

Huh. So it actually looks like the new owner can claim abandoned property, just as with a tenant who moves out and leaves a car. As long as you follow a certain process of course.

http://wisconsindot.gov/Documents/formdocs/mv2881....

Sheriff's auction property in my area. Previous owner seems to have died a couple of years ago and the place is completely untouched. There is a newer truck in the driveway, a grill in the back and various other personal items. For all I know there might be other vehicles in the garage. Snow around the truck is untouched and the neighbors confirm that the place has been abandoned.

What happens to these personal property items? Does the winning bidder get legitimate title to them? If not, what is the process?

This is in WI if it makes a difference.

@Michaela G. Late response, you may have figured this out already.

You 100% need commercial financing. They will not have seasoning requirements and will be fine with a blanket note. The downside is that you pay higher rates and the note will balloon every few years.

I have a similar situation where I was re-assembling condos from a failed condo development. I worked with a commercial bank to secure the first few and then piece the rest together. They were on board with my strategy.

You may have to call a few banks to find one that is in sync with what you are trying to do. Commercial lending is much more flexible than residential so there is a lot of variability.

@TJ Plotkin I meant that heat and parking are included in the rent. I would pay for them as hydronic heat. Sorry if I wasn't clear.

@Dave Carpenter Good comp, thanks. CL is a bit thin this time of year.

Thank you all, I appreciate the local expertise!

What do you guys think would be fair rents for well maintained 1BRs and 2BRs along there? Including heat and parking. Can I achieve $620 and $700? Or higher?

Thanks @Brandyn Dietman @Marcus Auerbach. 

This is a well maintained multi with rents around $580 for a 1BR and $660 for a 2BR. Conservative actual cap rate of 7.5, rising to 8.5% if I can get rents to $620 and $700. 

I feel like those rents are achievable but I don't know the area well enough to be 100% sure. If the area is moving from C to B then it's all gravy.