All Forum Posts by: Phil C.

Hi Everyone! We are interested in learning more on how to add value to a medium size (like between 20 to 100 unit) apartment by doing improvement on exterior or interior updates.

If you have any recommendation on the GC or team or investor with successful experience in Atlanta, GA area, I would love to meet and chat about that. Thank you all!

Hello,

First, Great work!

I am looking at your number. It appears to me a few numbers are questionable. Maybe I am not familiar the practice in your area. First, the property management cost is only $3k for 8 units. Does that mean you manage by yourself? Second, the insurance is $1.5k which seems to be low as well. 

Thanks Nick for your reply. 

If I find a licensed contractor to pull the permits, will he be willing to work with my contractors instead of his team? Can I pay some sort of consulting fee to him so he could work with my people?

Hello,

I have done quite a few fixer-upper projects from smaller ones like changing carpet to bigger ones like new plumbing and new electrical system. I work with a few trusted sub contractors. I have pulled electrical permit a couple of times myself. But I have never pulled other permits.

Now I am looking to buy a multifamily or small apartment which might need total renovation. I trust my subs and would like to continue working with them. However they are not familiar with the whole process especially about permit. How should I manage the process? Should I find a GC to pull permits and work with my Subs? Or could I pick up handling the permit myself and work with my Subs? 

Any suggestion is welcome:)

@Account Closed got it!! Thanks!

Hello! Sorry for the naive question. But can someone please let me know how I can call out to other members by using @username? I did just @username in my reply but it didn't show up as a blue block so I guess I didn't do it right...

Thanks!

Hui

Hi everyone! Thank you so much for your detailed suggestions @Jered Sturm, @David Begley, @Ben Leybovich, @Azeez K., @Mike O'Connor !!! BP is indeed a great community!

I'm back from my day job, put kids in bed, and now I'm going to pull my excel and redo my numbers carefully :-) 

@Mike O'Connor It's so embarrassing but 70K should be 700K and actually 750K. I didn't do my math right....

@Azeez K. Yes this is 30317. Again I appreciate you breaking down the calculations for me! I'd love more insights on Atlanta market. I've never made any thing close to the 2% rule in my SFH rentals. What are you seeing in the MF world? I have a day job so I'm not eager about high cash flow. I'm treating the investments as the kids' college fund or our retirement money. But I definitely don't want negative cash flow!

However, I've been looking for an apartment for a while now. I haven't found anything that is in a safe neighborhood (Atlanta has a lot of not-sure neighborhood in my opinion) and brings good cash flow. So I start to lower my expectation on cash flow and just want to get one foot in the door at least. Can the Atlanta investors let me know if I just haven't tried hard enough, or be creative enough, or what's the right expectation?

@Azeez K. would love to connect with you and meet at the BP meetup sometime!

Hello Everyone!

I am a buy-and-hold investor in Atlanta, GA. I have been focusing on single family rentals but I am looking for my first apartment. I have a potential candidate that I would run by you. Any feedback would be greatly appreciated! Also, we are looking for partner investors that may be interested in this.

This is a 20 unit apartment building, for sell for $37,500 per unit. All units are currently renting out for $500 per unit and most tenants have been there for 2+ years. Landlord pays for water, roughly $1400 per month. Tax around $8500 per year. The building is from 1965. Units are in fair condition – no immediate repairs needed, but definitely maintenance down the road and has potential for updates.

The apartment is at the edge of a B neighbourhood with mostly single family households. These houses sell for 150k-250k. The apartment itself is close to a commercial office building (currently empty for lease) and an auto collision center.

Based on my own calculation,

Net income will be half of the rental income, which is $500 per unit *20 units*0.5=$5000

Total investment is $70k.

Therefore Cap rate is 5k/70k=7%

The owner also owns a property management company that has been managing this apartment. He is interested in investing money elsewhere thus he is not interested in seller financing.

I think this is a fair deal but not a good deal. But on the other end, I believe in “having as many families under the same roof as possible” and don’t want to keep expanding with single family rentals anymore. So this could be a chance to step into the apartment business. Any feedback (especially from my fellow Atlanta investors) would be great!

We would like to go for a conventional loan with 25% downpayment. We don’t have $175k cash for down payment, but we have other properties with good equity and would like to find ways to work this out. If anyone is interested in partnership, please let us know!

Hi everyone. I’ve been buying residential rental properties and are recently becoming interested in commercial rentals. I saw a Gourmet & subs place for sale and want to get some advice on what things to consider before making an offer. It’s located in a good area, off a pretty big street, close to a hospital and a school. 1500sqft, subs & salads, fully equipped with no hood. From what I can see on google map, it’s on the ground floor of a large building. Price is $35k and rent for $2000, which is a bit too good to be true to me (that’s not what my single family houses can rent for).

How should I calculate the Cap rate? What might be the catches? Any advice would be greatly appreciated!