Posted by Vic in OH on April 23, 2011 at 17:05:32:
Chris,
Thanks much for the reply! Great article over there at Dr. Housing bubble which seems to be well backed up, and I would be curious to see Mr. Alcorn’s take on it.
Vic
?'s Figuring a price for a multi-unit complex - Posted by Warren
Posted by Warren on January 07, 2011 at 13:42:19:
I have a couple of questions about evaluating a multi-family property.
First let me tell you a little bit about the property. It is a 184 unit complex located in a better area of the OKC, Ok. It was purchased in 2001 for a 4,379,000 million, and it carried a little over 4 mil mortguage. Here is where it gets interesting, the lender has put it up as a lender short sale with the approval of the buyer. the current mortguage balance is around 3.6 million. The complex has had 2 fires in the last 6 months burning 2 of the 9 buildings, or 16 units which will require abot 700K to bring back in rental condition. The insurance company paid the lender the insurance to pay for the repairs on the 16 units. It has 31 units that need about 90K in rehab before they could be rented out. The complex is at 67% as of month, and believe it or not they still have 12 units that are ready to rent.
Here is the questions for you experts out there. Would it be totally crazy to offer 1.7 to 1.8 on this property. I know 2 mil. is the point where if I paid any more, it would come out of my pocket to make ends meet to pay for the rehabs and mortguage every month. Or do you think I should just wait to it goes thru foreclosure?
Any advice helpful!!
Warren
Re: ?'s Figuring a price for a multi-unit complex - Posted by Chris
Posted by Chris on January 08, 2011 at 07:36:51:
What’s the story, Warren? Why do you think others have passed on this? How deep are your pockets?
I started in 2003 with 2x units. It was a nightmare. Squatters who broke into units and all. Vicious tenants who let the water run in eviction situations. Do you value peace of mind? Is this really something to put everything on red? Or would that just be play money for you?
There are newer 4-plexes and duplexes out there - irrespective of the returns, I personally won’t touch a multi in this life. But then, I was a beginner when I started and now I have mostly grey hair.
Be careful!
Re: ?'s Figuring a price for a multi-unit complex - Posted by Vic in OH
Posted by Vic in OH on April 21, 2011 at 19:22:30:
Just curious Chris, what is your market niche? I’m a New RE investor trying to decide how to enter the fray West of the Cleveland area. Have done some Lonnie deals for the past 5 years with mobile homes but that’s all.
Re: ?'s Figuring a price for a multi-unit complex - Posted by Chris
Posted by Chris on April 21, 2011 at 20:51:58:
Hi Vic,
as of recent, I’m in deep…trouble with my latest projects. And in need of guidance myself.
i would recommend Jay Decima’s book Investing in Fixer Uppers,~ $ 7 at www.betterworldbooks.com including shipping.
I would WAIT until the shadow inventory gets to hit the market. See www.doctorhousingbubble.com
My mentor runs an ad and gets leads to unusual sellers who are not listing their properties. be creative, keep looking and above all, buy in good zip codes! (I chose bad zip codes in jackson MS and also bought a home with foundation issues. some “bargains” turn into the opposite. Be careful, inspect well before you buy.
Keep your powder dry and good luck to your endeavors, Vic!