All Forum Posts by: Todd Moriarty

Just looking for multi-family cap rate in Fort Wayne, IN.

Hi all.   Just looking for info on cap rates for Fort Myers, FL.  Thanks.

Thanks everybody.   I have seen the M&M report but I was wondering if anyone had real "hands-on" experience there with "real" numbers to confirm it.

Looking for a reliable cap rate for investment purposes in Indianapolis for apartment buildings.  Anybody familiar with this market?

Does anyone know how closing costs are paid at closing for a commercial loan on an apartment building? 

I'm analyzing several properties with two different spreadsheet "property analyzers" from two different real estate "gurus" and they calculate CC and loan amount differently. 

One analyzer adds the CC to the total purchase price of the building, then subtracts the down payment (25%) from that amount and then calculates the monthly payment.  Would my downpayment include a portion of the CC?

The other guru's analyzer does NOT add the CC to the purchase price.  He subtracts the down payment from the purchase price only and estimates the monthly loan payment amount.  Then separately, he calculates a percentage of the loan amount for CC.  He adds the down payment + CC as his "cash-out-of-pocket".

These two differences are throwing my numbers off.  The Cash-on-cash return is different on each.

I have a HELOC from B of A on a rental property in St. Clair Shores. It was my primary residence when I got it in '08. But two years later, I moved but the bank allowed me to keep it. And I still have it.

This past January my tenant called me at 10:00 pm on a Friday night telling me that the basement floor drain was backed up with water and feces on the floor.  Nice, huh?  He demanded that I call a plumber immediately to fix it that night.  I made a few calls and the going rate after hours on the weekend was over $300 to snake it.  I told my tenant that I couldn't reach anyone and that my plumber friend would be there in the morning.  My tenant wasn't satisfied so he called Roto-Rooter.  RR then called me asking for permission to go there.  I said "no".  I again told my tenant that my friend would do it in the morning.  My friend did it and only charged me $90.  I wasn't there when my friend snaked it.  While there, my tenant told my friend that they think it backed up because the lady of the house flushed a tampon and maxi-pad down the toilet.

10 days later my tenant called me again one afternoon during the week and said it was backed up again. I asked him why it was backing up again so soon and asked if they had flushed another tampon down the toilet.  He became angry, said they never flushed a tampon, that my friend lied, and my friend was not allowed over to snake it again and for me to find another plumber!  And he said, "Don't disrespect me".   I told him my friend was going over there to do it and I was meeting him there to help, talk to him and assess the situation.  Then he told me my friend was allowed over but for me to stay home!!  I ignored him and went there anyway (afterall, it's my f**cking house, lol). 

We snaked it, put tree root killer down the drain and I haven't heard anything about it since Feb.

Whew!!!

Looking at apartment buildings in Detroit metro area and shopping around for commercial loans to see what is available with the best rates/terms.  Can anyone recommend a good broker? 

Thanks for the ideas guys. I will check around more to see what else is available. And I will check with a mortgage broker (nowadays, who pays the broker, me or the bank?). I agree about the 15 yr. amort. killing my cash flow, even with 20% down. I figured 20% was the magic number and I could get good terms with that. Your last few comments tells me my local guy probably isn't giving me a great deal. I know now that with my high credit score, 20% down, that I can probably get something in the mid 4's with 20 or 25 yr amort. Provided the property's DSCR is above 1.25.

Thanks for the input Nicolas. I understand what you're saying. I'm just trying to understand the commercial loan market better....questions such as: what's currently out there, what terms/timeframes are common, what's available, how much a particular loan could reduce my cashflow on a specific property, what's ROI in 1 yr, 3 yr, 5 yr with a certain loan.

I created a spreadsheet with most of my final ROI calculations that are all tied to the monthly loan amount. I am looking at NOI, cap rate, IRR, C on C......everything. The loan amount is just one more piece of the puzzle.

Thanks again guys for the patience.  Rock on!

Those are great interest rates and terms!  Hopefully I can find that here in the Detroit area at a local bank.  I'll shop around.

I have a long standing relationship with B of A but unfortunately they don't do commercial loans anymore.