All Forum Posts by: Ryan Bakerian

Someone want to tell me where these magic B+ neighborhoods of 20-30% cash on cash return are in this current interest rate situation (or the last 20 months).

I LOVE small multi units, especially 4-8 family properties. Hard to find here. Nothing near that price range. Great grab. 

 Anything investment multi unit here is 25%, especially 4+.. maybe that's a NY thing?  

Hi had a client approach me about a question I wasn't sure the answer to. He was looking at purchasing a seller financed house with a 5 year balloon. At the end of the 5 year balloon he is looking to refinance the property with no money down. He would have to have 75% LTV in the property via a bank appraisal to complete this correct? His only fees would be the bank fees on the refinance?

Yes, in 5 years I'll easily have the 25% LTV to refi. I could always sell for $350K and have roughly $100K at that point. They also offered to extend balloon another 5 years at that point to prime + 2 points.

Hi all, I'm looking at a duplex a very good client has offered me. I own another multi unit on this street as well. It's in a B class neighborhood with major pharma growth. It's completely renovated top to bottom and has roughly $200K in the renovation. It's a 4 bedroom, 2 bath duplex. (2 bedrooms per unit). Upstairs gets $1300 a month and downstairs is vacant. I'm guessing around $1600 in this neighborhood easily. Off street parking, quiet dead end street. Building retail is around $335,000 - $350,000 on market currently. I proposed a couple owner financed terms to them and they returned with this one:

Sale Price: $300,000 

$25,000 Down. 

3% interest. 5 year balloon. ($244K ish) 

This is obviously far better than any bank can give me with interests rates around 7.5% here non owner occupied. Closing costs be way higher on a non owner financed deal. I can make roughly $900-$1K a month with these numbers fully occupied. Property would be worth around $375,000 at term end. I could refi out to a tradition bank and keep it as a hold. 

Thoughts?

 Agreed, I have some rentals in a B area and have friends with them in C areas and its night and day (talking 2-3 miles difference here in locations) in amount of applicants and quality of tenants. 

 Thanks John, will do. 

We are seeing the opposite here, there are NO rentals anywhere. Might be my location but I'm definitely not seeing a slowdown. 

I've had a lot of success with Zillow Rental Manager in the past for quality tenants. Also listing on my FB page and having friends share. 

 Agree with all of this. Expect damage. Expect drama and phone calls from complaints. It's a good profit maker but I'd probably hire a property manager if they were strictly student housing.