All Forum Posts by: Wyatt Franta

Hi Romain,

Finding vacants is a good way to find properties being used as rentals, but doesn't accurately assess current demand. 

Rentometer is a great tool for solo investors.

Partner with a Realtor and have them pull comps for you. 

If you're investing in LA or OC let me know, I can check local data for you. 

Hi Miko,

You are allowed to ask for a letter from the licensed medical/mental health professional whom provided the ESA documentation to confirm the alleviation of a disability performed by the service animal.

I will be following this thread in regard to pet fee reimbursement, as I'm unaware of that answer. However, when they applied, that animal was a pet two months ago, not a medical tool, so why would you be responsible for reimbursement? This seems like they're trying to take advantage of Californian ESA protection laws to reduce their overhead costs.

@Ross Sib

It appears that the deal you're currently exploring is starting to cut it close after updating your numbers.

To answer your question: 

It would depend upon the city you're looking to build in, as well as the style & finishes ( San Clemente for instance, requires a Spanish Colonial build-out for all buildings), but I can connect you with a few architects & developers down here during the week if you'd like to explore your options and get an estimated price range.

Hi Nitin,

You cannot legally raise current rents more than 5% of the current rent + the Consumer Price Index of your region. On January 1st, rent control was enacted state-wide. 

Read up on AB 1482 before making any further decisions in regard to your current situation.

I would recommend fixing up and renting out your currently vacant units at market rent and raise the current tenant's rent the maximum cap allowable for this year. Repeat every year until their rents match the markets.

If the tenants wish to move you may also need to pay relocation assistance as well depending on the situation, up to 3 months' worth of their current rent. Again, please review AB 1482, connect with a real estate attorney if required, but do not take my word for it. Do your due diligence.

Good luck and let us know how it goes!

Hey Kevin,

Rule of thumb for pulling comps, only go back 6-months and no further than a 0.50 mile radius maximum. Anything further than that and you're more than likely going to be observing home prices from a completely different market space & climate. 

@Joe Villeneuve is also right here. We don't know the specs of the comps you're pulling or the home you're buying.

Get a Realtor to help you pull comps 

Hey Jacky,

I haven't used Hippo, but I always use their pricing estimate tool to get a quick estimate for clients in the event they're looking to buy something. I've searched around the web looking for any and all reviews, and so far I haven't found any complaints. 

I'd talk with a rep and see what they can offer you. 

Hey Rene,

Look for cities/states with an influx of population growth due to growing workforces. Those are great options as demand should continue to increase as the area expands and in turn, more jobs soar in. I like the Midwest,  a lot of cheap in-demand markets for tech/aviation jobs.

I'll try & connect you with Samuel Smith once I'm able to tag him here. He lives in Huntsville & wants to get started as well. You two could potentially link up and reduce your skin in the game by working together.

@Bryan Solares

Check with your state board and N.A.R.

Hey Ross,

I'll be adding my comments as I read through the spreadsheet below:

• Given the location, at $2,800/mo, are you developing 8 2bd/2ba units between 1,000 - 1,125 SF?  Depending on aesthetics, amenities, & location, I would run numbers for $3,000-$3,200 there. 
• @Greg Dickerson would know more about construction costs/SF, so I won't add any additional input there.
• Annual rent increases of 2% may be scalable to 2.5-3%.
• No comment on Vacancy
• Your J16:L16 has a calculation error, $B$16 slid to $C$16, disrupting your annual rental growth for years 8-10, which in turn affected your NOI & CoC.
• What are your thoughts for admin fees?
• Total OpEx seems low
• Your above ground cost/SF states $225/SF, but your post on BP states $250/SF

Keep us in the loop here, I'd be happy to provide further input if needed. 

Hey Brandon,

Have you searched for these properties on Loopnet? You can find operating expenses, offering memorandums, and more through that site. If it doesn't appear there, call the listing associate/broker and get that information from them. If you're not sure what to ask, get an agent who understands multi-family properties to do the digging for you.

Like the other gentleman up above suggested, 10% CapEx is a good starting estimate, but you really won't have any idea what you're in for without knowing the age of the major systems, & interior condition of the units.