All Forum Posts by: Matthew Masoud

The market is certainly slowing down due to rising interest rates but there is little evidence that a bubble is coming.

People have been saying a bubble is coming since 2016.

Make sure you have a thick profit margin because we are expecting another rate hike during the upcoming fed meeting which will affect home prices even further.

Best of luck.

If you've had only 5 showings and no applications in 10 days, you may need to reconsider your price point. (unless you are in a low population area or you are not marketing effectively).

For my properties that are in landlord-friendly states, I don't mind month-to-month because I can charge a premium in rent (Market rent +$100) and I can get them out if I need to. Surprisingly they typically still stay for 12+ months

For my rentals in tenant-friendly states, I always go 1-year lease or longer.

 It was a great read.

After the past few weeks of looking for large multifamily I'd feel comfortable purchasing, I'm fairly discouraged.

I'm going to have to start focusing on off-market deals or potentially start looking at other kinds of assets as you mentioned. 

Hello BP community,

I'm starting to look for larger multifamily properties.

A common (surprising) trend I'm seeing is that people are selling their properties based on future (proforma) NOI.

How does that make any sense?

Here is a real example I'm looking at now:

A 10 unit property has a current NOI of $84,000. After some upgrades it will have an NOI of $100,000.

Sellers will price the property at the $100,000 NOI rather than the current $84,000 NOI. How am I supposed to make money on a value add property when they are selling the property at the price I'd get after adding the value?!

Is this common or am I just seeing this because this is an on market deal? Should I expect them to sell at current NOI or somewhere in between?

Thank you all.

Received a letter in the mail for a 6-unit I just purchased saying there will be a hearing against valuation?

The property taxes are high so I'm hoping this is a way to reduce them.

Investment Info:

Small multi-family (2-4 units) commercial investment investment.

Purchase price: $115,000
Cash invested: $9,850

Purchased a triplex

Converted 2 out of the 3 units to short term rentals bringing in a gross of $1,200 (market One year lease $650/month). Last unit has long term tenant at $600/month

Monthly mortgage: $760 (including tax/insurance) APR. 2.97%
Total expenses: $650 (utilities + Cap Ex + Vacancy)

Net Cashflow: $1,590/mo

What made you interested in investing in this type of deal?

Opportunity to use great financing on Turnkey Triplex.

How did you find this deal and how did you negotiate it?

Found Property on MLS. Offered $15k above asking. 6 offers presented, mine was accepted.

How did you finance this deal?

Freddie Mac/Fannie Mae requirements for multifamily property non-owner occupied is now 75% LTV for cash-out and purchases.

The days of 80% LTV are gone, at least for now.

*Exceptions are made for single family properties and owner occupied multifamilies.

Hey Stephen. I've purchased smaller multifamily in Cincinnati and Dayton. 

I'm preparing to syndicate my first deal 20+ units in Ohio, Kentucky, or Illinois.

The plan is to get to 100+ unit syndications but I'd like to do a smaller syndication first before I go big.

I'd love to connect!

Matt

Practice. Get your reps in.

First, pick what kind of real estate you want to do then practice underwriting. Grab deals off the MLS and just keep running the numbers on them.

You'll learn different things every time you underwrite (run the numbers)

Things like estimating tax, insurance, cap-ex, vacancies. Check out how other people estimate those numbers.

Like everything, you just need to keep practicing and learning. 

Watch videos, and do some yourself.

I underwrite 3-4 properties a day just to get my wreps in. 

@Kyrillos Elsobky