All Forum Posts by: Taylor Green

Joel, for a property in a C+ area, what would be the lowest cap rate you'd take? Also, what percentage of cash flow return are you willing to take on something small like a 4plex? (I know your on to bigger projects, but hypothetically)

Yes Jeff. The short while I've been trying to purchase a multi-family property, I have noticed the advertised expenses are way less of what they truly are once I add everything together... Most of properties are running about 60% for expenses and if the purchase price was to stay the same the advertised cap would drop from say 10 to 6... Is this a very common thing?

Thanks again Joel... Big help once again.

@joelowens

When you factor in the landlord paying utilities you said you use 60%. Does that include water/sewer/trash and electric... or just water/sewer/trash. Thanks.

The building is built in 1983 and its a 4plex. Fully occupied gross rents are $25,200. Asking price is $179,000. The owner over the past 2 years averaged $3800 for water/sewer.

Hi, I'm trying to figure out how much of a discount I should ask for if the expenses run higher than 50% of gross rent. For example 60% of gross rent... Does that mean I should walk away from the property or just change the asking price? I can't figure out how much I would offer! Thanks for the help...

Four plex. Is the only way to find out asking broker? Thanks Joel.

Hi, I am trying to find out as much information as I can before I make an offer on my first multi-family property... I'm having trouble on how to find out what nearby similar properties are experiencing for vacancy rates. Also, since I'm not allowed to inspect the property until an offer is accepted, what other other things do I need to research...So far I've done the basic financial analysis on the property, checking the outside building structure, and verifying the rent rolls, as well as rent comps for the area... Anything else I should research before I make an offer? Thanks.

Hi... I'm looking for a Commercial Real Estate agent in Phoenix that can help me locate multi-family homes. I didn't know where to start looking for a commercial agent, so I figured I might as well ask here first!

Al Williamson
Thanks again Al, you've had some great answers for me... I was just going to do an addendum, but I was on the fence with it. I guess it's just as easy to make a new lease agreement. Is this something I should contact an attorney for, or are the basic fill-in lease agreement printouts good enough to stand-up in court?