All Forum Posts by: Todd Dexheimer

I have a dozen student rentals and they are awesome. Turn over is typically every other year, but can be every year and sometimes 3-4 years. I have each tenant sign the lease with a co-signer as well. We have have no evictions and no collection issues at all. We have also had no damages that went above the security deposit amount and have had no vacancy rate (literally we have lost no money on turn over time, since purchase 5+ years ago). These properties are my least bothersome properties and best cash flowing. 

When the market comes back down, I will look to buy as many more as I can get my hands on. 

Minneapolis is around 4-4.75% in the A space. 4.75-5.75 in the B space and 5.75-7 in the C space. Those numbers are 1-1.5 above our typical market. I am seeing high cap markets like Cincinnati, Milwaukee, Louisville, Indianapolis greatly compressed as well. Those markets are approaching minneapolis cap rates, but still 0.5-1 pt higher. 

@Kristopher Edwards The property tax amount may be right for the property before it was renovated. Look it up with the county to see what the basis is. You can call the county to find out if you purchased for $1.5mm what the taxes would be. Every are is taxed different, but I would expect the property taxes to be at least $10k, but closer to $15k+/year. 

Other costs that are missing: utilities, advertising, attorney fees (evictions), accounting fees (books and taxes), advertising costs, leasing fees (if you need to lease 18 units), extermination contract, licensing fees if applicable. 

Is there laundry or any other income? 

You are buying this based on what could be at a very steep price. I would either buy much lower or have the contract state a certain occupancy in order to close. 

I would hire the right contractor that is missing a leg, an eye and 2 fingers, but this guy doesn't sound like a contractor, he sounds like the guy "living in a van, down by the river" (or in this case a boat). Use licensed contractors that do it for a living. If this is a hobby or a charity opportunity, then hire the guy. 

I would sell it and roll into something else. 

I see a lot of commercial syndications and I know a lot of companies syndicate commercial properties. I think you’re just not seeing it on bigger pockets because it was more geared towards multi family/single family.

@Tim G. what is the US mindset on Vacationing? "In England we call this living to work. I'll never understand the US mindset on vacationing. Almost feels like folks can't sit with their thoughts so they prefer to keep busy." 

What is the difference in mindset from other places around the world vs. the US? 

Nashville, as others have said is a very hot market - and yes for $1-1.2mm multi-family too. Probably one of the hottest in the country.

You can do a reverse 1031 Exchange if you have the capital. 

If you go the traditional 1031 route - build relationships and start getting deals sent to you, then, when you feel ready, list your property and really start hounding for your purchase. If your SD property gets under contract, just push the closing date back as far as possible. If you haven't found something before closing, then try to push it back another few weeks. Once it closes you have 45 days to identify 3 properties. 

@Nick Love a few things. First off, someone said to PM them about the opportunity. If you ended up taking there money for this deal, then you would violate SEC rules unless you do a 506(c) type offering. If anyone reaches out to you on a deal that you post or publicly talk about, make the connection, talk to them about your deal and your business, but make that a relationship building experience. 

Next, there was mention that you can take accredited investors, but you are able to take both accredited and non-accredited as long as you have a pre-existing relationship with any of the investors. There are limitations to using non-accredited investors, so talk with your securities attorney. 

Last, if someone is raising money for you, you cannot pay them, unless they have a brokers license. That means you cannot give them ownership for their efforts. You can work around that by giving them ownership in the LLC and have them help operate the business, but directly rewarding them for raising money without a broker's license is not allowed.

For all of this, talk with a Securities Attorney. 

@Bryson Rogan first off, I would read some books - Multi-family Millions by David Lindahl and ABCs of Real Estate by Ken McElroy are my 2 favorites. @Gino Barbaro is on this site and has a book called Wheelbarrow of Profits that is worth checking out as well. 

Podcasts are great. There are several that are multi-family focused. Wheelbarrow of Profits, Apartment Building Investing with Michael Blank and Lifetime Cashflow with @Rod Khleif. I also just did an apartment investing series on my podcast. 

I wrote an article as well on getting started: https://www.biggerpockets.com/blogs/10145/70092-ge...

I would pick one or two of the points and focus and expand. There is a ton of great information out there and on this site. Good luck!