All Forum Posts by: Terrence W.

Hi all,

Is a 1 point  origination fee standard for a Freddie Mac SBL? Thanks for your help!

Hi all,

Looking for some advice on a property I own in San Francisco. The building is in Pac Heights and zoned neighborhood commercial district. Currently there is a 3 unit (3800 sqft) building on the lot with a 2 car garage on the back (alley access) with lots of deferred maintenance. We talked to an agents who wants to list the property at around $900/sqft. There are some recent comps in the area at $1500/sqft for fixed up properties. I'm looking for some advice on what the zoning would allow (maybe up to 5 units) and what a rough estimate cost would be to gut the property and fix up to SF standards. Any thoughts or help is greatly appreciated in advance!  

Thanks for sharing the article @Will Waterman. As stated by others on the thread what goes up must come down, at some point. Predicting that some point is fools gold. How many people have waited it out on the sidelines for the last couple years while prices have continued to climb? Additionally the article states that Sunnyside will increase while Green Valley Ranch will decline. This seems fairly consistent with previous real estate cycles, good locations are able to weather the storm while areas that have risen mainly due to lack of inventory/high prices in the desirable locations will do poorly.

Thanks for all the replies. It's good to know that I'm not crazy and that if I want to be in this market I need to find something with value add that will push appreciation.

Hi all! I'm starting to look for a 10-20 unit buildings in my local area and from what I have seen there are some pretty terrible deals out there. Maybe I'm going about this wrong and someone can help correct my thought process (I'm using the 50% rule to estimate expenses since the proforma data seems suspect).

Here is one example that I have seen:

Almost every property in my local area looks pretty similar to this one with negative COC or COC of 1-2%. Only way it seems that you can make money is to buy with all cash and then you are making some pretty paltry returns that will barely keep up with inflation.

I would take a look at www.fivver.com if you haven't already. It is a site for freelance graphic designers and video editors. The graphic design portion usually starts at $5.  

Thanks @Scott Choppin. I will try and check that out. I also found the NAA executive summary for free online which has some good general info. https://www.naahq.org/sites/default/files/naa-docu...

Thanks @Matt H. and @Bill S. I appreciate your feed back and I am just trying to get a feel for the costs associated with the larger multifamily space. As you both stated it seems fairly building/manger specific. Ill just keep analyzing the deals and ask for some additional info if one looks promising. @Bill S.

Hi all,

I was looking for someone who has experience in the garden/walk-up level multifamily space in the Denver area. I'm looking to purchase a 10-20 unit class C building, but I'm having a difficult time estimating the costs per unit. It seems like the 50% rule is not as applicable when you have a high rent area such as Denver because the expenses are somewhat fixed while rents will float with the area. I was thinking somewhere along the lines of 4000-4500 per/unit depending on who covers utilities, but would appreciate someone with real numbers to provide some guidance. Thanks again in advance! 

Thank you all for the replies! It is truly amazing how much time and effort you all give to help out a newbie. 

@Vanessa Thiele You are definitely right. This will be an investment property and not owner occupied so I will need to put down more cash.

Thanks for the dialogue @Jeff Brower and @Bruce Runn. This kind of discussion really hones in on the fact that calculators and spreadsheets are just guidelines. There are and there are so many other factors that can influence the numbers one way or the other based age, current condition, location, etc. It is really important to have a local who knows the ins and outs of the market to help give a good analysis. 

@Scott Trench-Appreciate you breaking everything down line by line. Super helpful to see where I can tighten up the initial evaluation and improve my process. I'm definitely looking to buy and hold with plexes in Denver so its good to hear that I could make 10-15% return if I find the right deals and take any appreciation as "icing on the cake".