All Forum Posts by: Rao Mu

I am looking at some of the glenolden pa condos which are under 40k with close to 400$ in monthly fees. However, the rental for these 2 bed condos are at 1050-1100 a month and the community looks great without any crime and lots of working class. Complex name is contemporary village. Anyone has more insights into this?

the only issue I am hearing about tic is that it's very hard to finance by the lenders. 

I am coming out of a sale of my investment property and trying to put my money in buying a 1031 exchange property or put it under renowned dsts like Walgreens dst or so. However, with existing dsts, fees are the killer. I can find some really good NNN deals and put them under a dst and pool money from other people, can I? say, if it requires 500k down and I pool in 300k and the remaining comes from another investor and we put it in an dst and go from there. Basically, how complicated it is to setup a dst yourself? I don't even know if I am qualified enough.

I haven't seen the actual lease. it's a full 8 year. I am still getting info in their age etc since contract price is not yet negotiated yet, which is only when they will show lease and give more details.

I am trying to get some expert opinion on a daycare site in massachusetts 40 miles from boston in a good demographic location. The site has an operating franchisee daycare with 8+ yrs left on lease and as per the broker the enrollment is close to it capacity and potential buyer can verify it also. The sale is at 8.25 cap rate which is enticing.. I am trying to understand what are the risks with this property.

- I can see that NNN rent is a tad high at 30$/sft and it's going to go higher to 33.5 in next 2 years and stay at 33.5$/sft there after.

- If the business is doing so well, I don't see a reason why would the business leave after 8 years. If they leave, they would be selling the business and someone will buy and will stay at the same location. At the end of the day, daycare is a location specific business.

I am currently looking at a day care nnn deal with 15 yrs left on lease and is corporate guaranteed. All at a cap rate of 6.5%. The nnn rent is atleast 20% less than market rent. Also, it's in a populated neighborhood of New Jersey where abundant jobs exist. Rent increases every year are capped by consumer price index. On paper, it looks like a great deal if I get 10yr loan at 4.25-4.5, I would get cash on cash at 10-11% with 25% down on 2 million dollar purchase price. I haven't seen the lease yet, but the fact that leasing rate is less than market rent makes the deal juicy. Need some expert opinions on this. 

How cheap is safe bet? 400k?? of course, subject to approvals.

It's not a corner but visibility is very good because to the left it's already an apartment complex which has enough setbacks. Hence, it's all grassed out. Next door strip center has a big Indian grocery store, Indian take out, Verizon store, child care, Chinese restaurant, and Dunkin' Donuts. yes, approvals need variance because it's in office professional zone. Retail is not permitted but it's all retail over there.

I'm thinking about developing a small strip center in a 0.8 acre land. The land is flat and square and no issues. Need to demolish two houses. Environmental seems clean. Demographics are excellent for central New Jersey with median income more than 100k and VPD more than 20k. There is a 50k sqft shopping center next door charging around 22-24$ NNN. I'm trying to estimate what is the best use of this piece of land? I'm thinking like 9k sq ft small strip cemter with 36-40 parking. 150$ per sft construction including demolition and buildout. Any thoughts? I'm reverse engineering to find the cost to buy land. A block away I see McDonalds closer to interstate highway. Any other best uses biggerpocketers can think of?

@Kevin D.  I am looking at this particular property in Wilkes barre, PA with a high cap rate of around 18-19, though I don't think it's true.  http://www.zillow.com/homedetails/390-S-Grant-St-W...

How do you feel the neighborhood is? It seems like a school that got converted to apartment building (14 units) and also, it doesn't seem like a densely populated area also. Let me know your thoughts...