All Forum Posts by: Todd Dexheimer

Trying to figure out that math. $1mm with a simple growth of 64% in year one grows to $1,640,000, then take the $1.64mm x 64% growth for year 2, then 3, then 4, then 5 = $11.86mm. I guess it's interpretation of numbers and how you're assuming the 64% growth 

If I am following you, then you can just remove it and replace it with a storm door. As long as they have a fire-rated entry door that meets your local code requirements you will be fine. 

You mean to tell me that a multifamily building in Columbus, OH that sold for $1mm on 2016, now sells for $11.86mm today just through appreciation with no value add? 64% year over year growth for 5 years did not happen in the RE world. 

I wish that I would have know that it would be easier to raise money, get loans and operate larger 100+ unit buildings than small apartments and that the effort would be nearly identical, while having a much greater impact. 

Dallas is poised for strength long term, but short term there is over-supply, which will keep rents at bay 

If you chose to start small, I would work your way up to larger properties as quickly as possible. You could buy a few duplexes and then buy a 10 unit, then 20, then 40, then 60 and so on. Having 20 duplexes won't give you much more experience in the eyes of a lender than having 3 duplexes and certainly you would look better if you owned a few 10-40 unit properties. 

Well, if you sell and can then re-invest and make an average of 10%/year, that would be $50k vs $9600 that you get now. Of course you need to factor in the principal reduction and the equity as the value increases. 

The other option to consider is a refinance to capture some of that equity. Depending on your loan now, that may make sense and still keep your cash flow at a nice level. 

Competitive advantage over California buyers is that you are local and can actually close on deals. Build real relationships with real estate brokers that are selling the type of properties you're looking for. These brokers get 5 calls+/day from "investors" that waste their time, so if you actually take the time to build a solid business relationship, you will set yourself apart. 

As for the syndication of a 10 unit building, you may want to be looking at large assets, that require more capital. Syndication is a bit expensive, unless you're raising $1mm+. At a 10 unit, consider JV partnerships

Once the lease term is up, you can raise rents as you feel fit. If I am doing a sizable increase, we send a letter/email with data showing rent comps that support the new rent. We keep it just a bit below the market. When you do a big jump, expect them the leave, so understand the renovation needed in that unit in order to increase rent to market. 

Birmingham is the only one that really surprises me.