All Forum Posts by: Peter Nikic

Congrats! I closed on a small 9 Family in Chattanooga last year, I used Pinnacle Bank. Which bank did you use? I'm curious.

Also, some of the student housing units in that area are more like rooms rather than apartments, how are you able to reverse those into apartments?

Good stuff. I look for same. Then also look for upside that current owner is either not seeing or not taking advantage of. 

I'm in NY & TN otherwise I would. 

My advice: 

Talk to as many people as you can who have already done it. 

Learn about the industry (read books, classes etc.

Save as much money as you can, you'll need quiet a bit of it (I recommen 30% of purchase price). 

Get/keep your credit score as high as you can. 

Eliminate all recurring debt such as credit cards, car loans etc.

Good luck, reach out if you have any specific questions.

thanks!

1031's a great, have done it several times. There are very strict time constraints, so they're not easy. Familiarize yourself with the 1031 program and look into multi family properties that you think you'd like to own, then see how it plays out.

BTW you can also trade up in dollar value, it doesn't just have to be number of units. Ex. trade a million dollar 2 family with a two million dollar single family or two family. Just make sure the returns are consistent with the higher price tag. You can message me if you have any specific questions. Good luck. 

Thank you very much! Hamilton County? Chattanooga?

no TN? I'd really like to know about TN.

How are taxes calculated/adjusted in FL?

I went to college in Daytona (Embry-Riddle) in the early 80's. It was such a great beach town from what I remember. Thoroughly enjoyed my college/experiences there. I've been back a few times since then (just passing thru to see it) and I don't know if it changed, or if I was seeing it with mature eyes. Regardless, it just didn't seem as nice as it was in the 80's.

Having said this, I would guess, especially with the way real estate markets are rising, it can only get better going forward. It will be a challenge to deal with this many units (especially the 1BR's). You'll need to be creative. 

One thought I have is: try to remove a handful of the problem tenants. Replace them with good tenants which you'll need to lure with incentives (low rent, a few free months etc). Once the property is stabilized, it'll be a lot easier to continue the process of replacing bad tenants with good ones.

Good luck!

 This is excellent advice! 

Let me just add, if cash is more limited, it can even be a single unit condo/house, a 2 family, or 3 family as well. 

Also, try matching the rent (or rentability) to the purchase price at 1:100 or 1%. That means whether you buy a single unit or 4 unt, as long as the rent is aprox 1% of the purchase price. 

ex: you buy 4-plex for $800k, those 4 apartments should be renting for $2000 per mo each (or close? more is better but less likely that it will be). Good luck.

It's not unreasonable, but the response will vary based on the owner. Some are happy to comply while others will either see it as a waste of time or just not interested in giving you any more than necessary.

To be honest, when I have people asking for too much information upfront, I see this as a time waster. Once a deal is well on it's way is when I would be willing to share everything I have. 

My recommendation for newer people (those who are learning or getting their feet wet) is to ask in smaller increments rather than risk being shut out.