All Forum Posts by: Tim Ivanchuk

@Miguel Alvarez

Hey Miguel,

You're looking for just one property to be managed?

@Jordan Meyer

Great! I would be interested in further discussing these opportunities. I sent you a message. Thanks for posting!

@Jordan Meyer

Hey Jordan! Great to hear about your interest in the Omaha area. Tell us a little bit about yourself! What types of investments do you have currently and what's your goal for this area?

@Bo Goebel

There is definitely issues with the property. A ton of plumbing and piping issues. I am having problems getting more info on it so I am definitely getting sketched out with what is coming from the management company. Plus someone just put it on contract with cash so there it goes. Do you have experience working with old properties? There is clear potential for major problems, but I haven't dealt with specifics on year groups less than the 70s. Thank you, I have been meaning to check out that book for a while now.

@Sean Mcevoy,
This is in the Midwest. 30 minutes out the biggest city, Omaha. There are a few complexes in that area that are getting 600 on average rent. Obviously those are in better condition, so the hopes are that it will mimic that in relation. There isn't a whole lot to compare it to yet, the area is in the slow process of growing. What is a good way to check market rents?

@Ryan Murdock,
There is a property management company that runs it currently and has for a year. They told me that they haven't had to evict anyone, but we know that the place was always under rented. The owner is did not have a very good strategy on most of his properties and they fell to ruin/under market rents. I am trying to do more research on them, but this scenario seems to be extremely difficult to get info out of.

@Tchaka Owen,
I will have to set those up for sure. Getting a bid, financing and info on everything quick quite difficult.

Does everyone here have any other tips or could point me to a book/video/article on dealing with commercial rental properties? I have listened and read up a lot on residential rents, but not too much in commercial rentals. It all feels brand new.

@Tchaka Owen

Thanks for the reply. I'm just ballparking the cost, it could be more than that. My goal isn't to completely remodel right away. Wondering if that's a smart idea or not. Yeah definitely could be 60 if I do it all at once. Other than the basics, what are key indicators to look for?

I am trying to figure out if I have a deal or not. I have only a condo right now and this complex just fell into my lap.

Parameters:

- Asking price 189k

- 10 Unit complex

- Built in 1940

- expenses seem to be like 2k a month? I haven't found exact info in this. The guy is old and had bad accounting

- 5-6% for interest rate from the bank, 20% down, 20 year amortization

- Rents are 400-650 depending on size, after fixing this could go up to 550-700 easily

- Building needs some serious fixer up work about 30k

- AC is window units, boiler is used for heating

Any other information I should add here?

Financing would be through a smaller bank, 20% down which I will leverage equality in my other rental, possibly little or no money down.

I am hoping to get some light on this. First commercial deal ever. If this isn't allowed or,I need to change stuff let me know. Thank you.

Investment Info:

Other buy & hold investment.

Purchase price: $58,000
Cash invested: $12,000

Condo unit. 2BD, 1BTH, 680SQFT.

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

First living area, acquired for primary residence.

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

Uncles brother in law was selling, I was interested once it was offered to me.

How did you finance this deal?

My own money, borrowing some from family.

How did you add value to the deal?

Basic remodeling, replaced AC system. Not much value added.

What was the outcome?

Used as a buy and hold rental.

Lessons learned? Challenges?

Dealing with tenants.. Very interesting.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not on this deal.

 Mitch, how many properties are you looking to have managed?

Sernel, no I have not. I want to try that, but what should I say? I don't want to come off as I am sort of big investor since I am not. Is there certain wording I should use? Would it be weird asking neighbors about properties? I have never done that before.