All Forum Posts by: Ramsey Blankenship

Hi guys, here is the story. I have self managed my 12 rental units for 2 years now while still active duty in the military. Over the past two years I have had zero problem renting out my units. All are 1/1 apartments. They typically rent within a few days of me posting an add on Craigslist. I am now preparing to transfer across the country, have a baby on the way, and have been extremely busy at work. So busy that I have had units come available, and they sat vacant because I couldn't get off work to meet potential tenants during a reasonable hour. Needless to say, I put my properties under management in order to reduce my workload. Unit info: 1/1 units in decent/lower middle class neighborhoods. All freshly renovated rent is $700 per month Here are my issues: -all three units have been vacant for two months. -they charge a $45 per person application fee -management company wont post ads on craigslist - the signs say "Resort" properties because they also manage many short term vacation rentals. - communication isn't very great Now- this is a very large, very professional agency in town and They are known for their honesty and good business. I have bought two properties through them and trust they are not sketchy in any way. My question is if they are too big for my units to be their priority. If so, this is an issue. I understand no one will care for the property like i will, but i know I could have them rented out if I were doing it myself. I don't want to get in their way however i cant afford this for much longer. Should I sit down an express my concerns, switch management, is this typical, im at a loss. Ramsey

Go to Jacksonville! Where you would live being stationed at Tyndall is either Callaway, Parker, Springfield, or Panama City. All of which are dumpy little towns. Panama City Beach is only really nice on the west end, a near hour drive from Tyndall AFB. If you do end up at Tyndall, look at the Cove area. Its nice and quite. All in all, Jacksonville is a much more progressive city with lots to do. Panama City is Booooooring! Unless you are a spring breaker

You can also make your offer contingent on on inspection. During the inspection, you may request the P and L, and if you do not like the numbers, counter offer or bail out.

What I am confused about is that when I purchased the property, all 7 units were receiving $500 p/month for a gross monthly of $3500 and $42,000 annually. With the same math we used earlier, the property should have appraised at $262,000 however it only appraised for $205,000. Its possible the appraiser used a 10 cap to evaluate the property and my banker was loaning money to properties with an 8 cap. I dont know why it appraised so low when I bought it, i was just happy to get a better return. Are there any other variables that can effect the appraisal of commercial property such as property condition ect?

Kevin Fox i will do for sure. Will be moving back to SD this time next year

Doron Nissim when you say you can pull the cash out after 6 months- is that 6 months after renovations are complete, or 6 months of owning the property?

Brent Coombs My previous post was quick math but after looking into it, here is more detailed math. (feel free to tell me If I am wrong.) Gross rent = $4,775 p/month x 12 = $57,300 Vacancy rate of 10% brings it to $51,570 Consider 45% to %55 for expenses and management brings my NOI to $23,205 - $28,365 NOI/Cap Rate $23,205 / 8% = $290,000 $28,365 / 8% = $354,500 @ 70% LTV that gives me a range of $58-$100k to pull out if my math is correct. What are the disadvantages of refinancing other than higher mortgage and refinancing fees? The property will still cashflow quite well after refinance and I will now have capital to invest into another property. Thoughts?

About a year ago I purchased a seven unit property in a good neighborhood, however the property was in horrible condition. I have since evicted the trouble makers and completely renovated the units along the way. My rents have increased from $500 p/month to $700 per month in each unit i have renovated. I have two units left And my rehab will be complete however I am left with very little capital to continue investments with (down payment + rehab costs for 5 units). The complex cash flows $2,500 per month which is fantastic however I have just learned about the BRRR strategy and need advice. I purchased the property for $200k and had to put $50k down. My rehab costs are right at $7k per unit and 5 needed renovations ($35k). My total out of pocket is $85k. From my understanding, it being 7 units, the property is appraised based on NOI/Cap rate. Local Cap rate is 8% for Panama City, Fl. With that math I am seeing that my property should be worth $280 -$300k when I am finished and fully occupied. My question is this: Do I need to have my property rented at the increased rent for a full 12 months before I try and refinance to pull cash out? Or will the bank use market comparables and refinance after an appraisal. Appraisals on commercial property cost between $2,500 and $3,000 so I do not want to spend that kind of money if the appraiser is going to check my tax return and see a huge list of expenses and vacancies because of the construction. Any help would be greatly appreciated. Ramsey

Thanks for the connections! How is the Pensacola market? I see multi family listing over there alot

Arianne L. Thanks for the invite! I have been to a few meetups here in PCB however the ones I have made it to are during lunch on Thursdays when I work. I REALLY REALLY liked what I saw! For my freshly renovated units I am getting between $700-$750 in "okay" neighborhoods on the city side. That includes water/sewer/trash. For my lower end units in rougher areas, I am getting around $500 for 2/1. Returns are good however inventory is getting low. I used Trulia and Realtor to find deals because I didn't know any better and still have not cracked the off market code. I feel like there are deals to be had all over because driving through neighborhoods there are neglected properties everywhere but they are not on MLS.