All Forum Posts by: Peter Nikic

I'm a small multi family property owner, I use excel. I created my own valuation model, I love it, it helps me understand the value and future potential of a property. It's the best I've seen (though to be honest, I haven't seen that many others).

I'm not sure that I'm ready to share my model with random people, but anyone with excel knowledge should be able to build their own. 

I know a few builders in the Bronx, they certainly seem to be doing well though I'm sure like anything else that's good, it can't be easy.

I don't know the actual cost, and I'm not sure that I can get it for you from these guys, but it certainly has good potential. 

Lastly, if you don't own any multi family properties in the Bronx, and this is your first build, I'd be very cautious. You need a lot of units (minimum 200) and/or subsidized housing to make money in the Bronx. Chips are stacked against the landlords in the Bronx. 

Good luck.

Where in Alabama? I'm only slightly familiar with Huntsville.

$30,000 per unit plus reno ($15,000) gives you a $45,000 per unit property. Based on potential rent, this should be a $70,000 per unit property ($3.5M). 

Not an easy deal especially if you lack $$ and/or experience, but I's say it will pay off in the long run. 

Let me know if you have any specific questions.

@Nick B. makes good points, that's how I would proceed.

But I'm thinking you want to know what you should pay in order to get a good return upon completion of your plan?

I would try to estimate expected cost of doing all this and add it to the purchase price. Then take the expected (new) net income, divide it by the purchase price + expected cost to get your future cap rate. 

Let me know if you have any specific questions, otherwise good luck!

The 5 year balloon means that you have to pay the loan off in 5 years (or refinance). I'm sure you realize this?

Otherwise, 10% down at 4% interest amortized over 20 years seems like a great mortgage. That's $196,000 for mortgage, leaving you a little over $4k per month in profit. 

So $300k down w $50k annual returns seems pretty good. 

I'll be in area in 2 weeks, maybe I can come talkle a look at the property, we can discuss. I might even be interested for myself?

I think that's a good strategy, that's what I've done. It has worked well for me so far. One of the toughest things is that a lot of cash is required each time you buy. So it's a long and slow process, but worth it in the long run. 

as @Joe Splitrock stated, this could be more of short/long term capital gains rate rather than 1031. I can't recall, but short term (less than 12 months) may not qualify to 1031. 

The benefit of multifamily is "buy/hold" if you're a flipper, it might be trickier w multifamily properties.