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All Forum Posts by: Scott King

Scott King has started 2 posts and replied 4 times.

Post: [Calc Review] Help me analyze this deal

Scott King
Posted
  • Rental Property Investor
  • Kailua, HI
  • Posts 4
  • Votes 2

Thanks for the great feedback, Chris - much appreciated.  I have a pretty crude proforma built, however if there is anyone who knows of a more detailed tool better suited for multi-family that would better capture performance/returns factoring in the delayed start of lease-up and absorption rate from there, I'm all ears.  Until I have a more detailed analysis, I'm happy to hear any general feedback from the group on the information currently presented.  Thanks again, all!
   

Post: [Calc Review] Help me analyze this deal

Scott King
Posted
  • Rental Property Investor
  • Kailua, HI
  • Posts 4
  • Votes 2

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Greetings all,
I'd appreciate any insights on this off-market multi-family (20 units - 13 x 1-bdrms, 7 x efficiencies) opportunity just 4 miles west of Cleveland, OH.  $1M purchase price, $300k repairs, and an assumed $1.6M after repair value, with after-repair/lease-up total monthly gross revenue of $14.7k .  Some highlights (or lowlights) that the calculator does not consider - property is CURRENTLY VACANT and will require ~$300k of repairs/upgrades before lease-up...so BETWEEN 9 MONTHS to 1 YEAR of 100% VACANCY BEFORE LEASE-UP BEGINS.  I don't believe the calculator is built to take that into account.  Projections were provided by seller's agent, and I'm just now starting my due diligence.  Would really appreciate any thoughts from those of you who have a lot of experience analyzing multi-family deals.

Thank you!

Scott

Post: Does this investment make sense in today's market?

Scott King
Posted
  • Rental Property Investor
  • Kailua, HI
  • Posts 4
  • Votes 2

Thanks to all for your great insights/advice.  Being new to BiggerPockets, this is my first post, and it's great to see so many people take the time to offer their advice/experience - what a great community. 

The strategy would actually be for a LTR, not STR. STRs here on Oahu are limited to 30 days or more, and as Manaia points out, the state is cracking down on abusers. The current LTR market actually supports the $10k figure for (3x) remodeled LTRs only steps to the beach, however as was pointed out, who knows what the future holds, especially given potential continued COVID impacts on our island/tourist-driven economy. I appreciate the candid feedback from Julie and Edward regarding the thin margin / and risk here - this validates my concerns with the deal.

A little back-story: original list price on the property was $1.1M (less than tax value of the land), which made it a no-brainer in my mind to make an offer on the day it was listed.  I offered $1.115M, and was the first offeror.  Not surprisingly there were multiple offers, and the seller's agent came back to me the next day to see if I'd match the highest offer received to date of $1.225M (triggering my concern/question on this forum). Needless to say, and with the help of your advice, I passed.  I hope it works out for the ultimate buyer, but too much risk for me at that price.  Again, thanks BP community for your help.
   

Post: Does this investment make sense in today's market?

Scott King
Posted
  • Rental Property Investor
  • Kailua, HI
  • Posts 4
  • Votes 2

I'd appreciate any advice from any BiggerPockets / investor veterans before taking the plunge on this investment.

Description:

Oahu, Hawaii fixer-upper, 1 block from beach
3 rentable units on 1/4 acre lot
Price: $1.225M
Rehab cost: $200k
After Repair Value: $1.59M
Future rents: $10,000/mo

The property is in the city where we live, so self-managing/GC'ing the rehab and rental (if we decide to hold) is possible. For a buy/hold strategy, bigger pockets rental property calculator shows a CoC ROI of 8% with a 75% LTV at purchase ($306k downpayment, $200k rehab cost, monthly cash flow of $3520/month). For a flip strategy, bigger pockets flip calculator shows a $86k profit (5.91% immediate return).

Any insight/advice would be greatly appreciated.  

Thanks, Scott