All Forum Posts by: Prashant Sharma

Thanks James, if the tenants refuse the rents increase, it is about $400 negative cash flow. Have to make a decision today. 

Your point about valuation peak is interesting, it sure feels like we are peaking but no one can tell for sure.

Hi, I have an accepted offer on a duplex in an A+ neighborhood but the current rents will bring negative cash flow with 25% down. Leases expire 2-4 months after i am supposed to close at which point i can raise rents. The market rents will then bring me minimal cash flow ($150 /mo) if I self manage (although I don't have a lot of time to do that) with 10% for prop repairs and NO other allowance as vacancy should be zero. The property needs some minor repair/cosmetics updates.

The market may appreciate in future but would you invest over $100k+ down in a property like that? Am I making a bad decision?

Thanks

Thanks for your replies, very helpful!

Hello investors,

I was listening to real estate guys podcast the other day and a commercial lender/broker mentioned about a fully amortizing 25, 30, 35 yr term HUD FHA commercial loan product. Anyone knows if such a product exists in today's market and if so where/who should I start talking to about this. Having a loan that is going to come due in the next 5, 6, 7..years doesnt give me the warm and fuzzies.

Thanks,

Prashant 

Thanks @Joel Owens

Very good points to think about and long term debt on 4 vs 5.

My goal is to gain financial independence and not be dependent on my job which although pays good money but I hate the lifestyle that comes with it. You mentioned about letting the sponsor do the heavy work. Are you referring to syndication (bigger multi-family deals with several investors?). If so, do you have any pointers on how do I go about finding someone who would let me in the door of huge deal like that? I'm an accredited investor.

Hello BP community,

I'm looking to enter the commercial multi family property market before the interest rates go out of hands. 

Being new to commercial (5+ unit), I wanted to get your advice based on your experience in this space. Is buying a 5 unit (to test the waters, get a feel of a commercial deal, understand how it works etc.) a bad deals in terms of exit strategy? Being just 1 unit over the traditional financing criteria of 4 unit, am I limiting my pool of potential buyers for when I do decide to sell/exit the investment? Since most experienced players in this space would want to do bigger deals as far as I understand, is it a bad idea to do a 5 unit deal?

Thanks!

Thanks @Jennifer Moore

@Lucas LeBlanc - I didn't know Seminole Heights was up and coming, I will look at that area in my searches as well. Thanks

Hey BP members,

I'm looking at a potential duplex property in the Tampa area to purchase as an out of state investor. I have read about YBOR area in general as being the cool, hip area filled with young professionals with plenty of nightlife and bar scene. However, most of the deals that make any sense at all in Tampa seem to be in YBOR heights, or further up in Seminole heights. Is YBOR heights (and surrounding areas) considered "up and coming" or more like war zones? Is it more like B, C (or D?)?

Thank you!

@Jacob Brattain Thanks! I didn't know about the real estate taxes situation. I will ask the title company about that.

@Jynell Berkshire Thanks for clarification. Great help.