All Forum Posts by: Account Closed

Thank you so much Joel and Brandon for your feedback. It sounds we're going to pass on this one.

So what we took away was this:

The property would be a viable investment if it had either:

1. higher rents
2. less deferred maintenance.

It's the combination of the two that makes it a pass. Does that sound about right?

Hey everybody! I'm new to BP and wanted your input on a property.

• Built in 1985
• 2, 2-story Buildings, 4 units in each building
• All units are approx. 615sqft 2-Bed/1-Bath
• All units have central air (not common for the area)
• Currently leasing at $400/mo
• 100% Occupied
• Landlord pays trash/water

Financials (Super rough repair estimates)

• List price of 235K
• Offer price of 209K
• 90K in deferred maintenance & updates.
  • 2 New Roofs: 12K
  • Reno of All Unit Interiors @ 5K/unit: 40K
  • Parking Lot (Asphalt) Repair: 7K
  • Exterior Wood Siding Repair & Paint: 20K
  • Something Else that's Broken: 10K
• After improvements, market rents of $500-550/mo. (All #'s below are calculated at $500/mo)
• Gross Income : $44,928
• Total Expenses : $17,153
• NOI : $27,793
• Cap Rate : 9.3%

The surrounding area is primarily SF with a couple of Duplexes thrown in for fun. It's about 10 mins out from downtown, and next to one of the most desirable areas of SA. Note the next to. It's literally just across the railroad tracks. So there's a train too. We'd probably occupy a unit and provide on-site management while the property is in transition.

It's a low C that could become a low-to-mid B.

Any feedback would be amazing. What would you do?

Allure is a line of flooring sold under the Traffic Master brand. Traffic Master is the Home Depot house brand, so that's the only place you can buy it. It's comparable to the low to mid-grade Armstrong vinyl, depending on which specific product your buy.

The big thing to consider when putting down vinyl plank flooring is whether you want a floating install or a direct glue install. Direct glue is cheaper both to buy and install, but it tends to look cheap. Personally, I'd recommend the floating. It's a thicker product so it's less prone to rippling and there's little to no sub-floor prep. It can also be installed over most existing flooring (including vinyl, concrete and tile) and is very forgiving when it comes to irregularities. It just depends on what works best for your budget.

Note: I worked as a junior interior designer at a firm that specialized in multi-family projects. We specified these types of products all the time. I also happened to work in THD flooring department while I was getting my degree.