When looking for potential apartment properties? - Posted by MK

Posted by Eddie on December 15, 2007 at 19:47:34:

I am a resident of Houston and I can possibly assist you with this transaction. Send me an email.

When looking for potential apartment properties? - Posted by MK

Posted by MK on November 27, 2007 at 19:49:52:

I have been searching loopnet and skimming creo for some time now.
I have come across several properties with 8%+ cap rates in the Houston area and would like to take the plunge and make a purchase.
I have been looking at 20-30unit properties and came across several that I would like to further investigate.
There are some stats posted on the property listing as far as noi and expenses.
What are some other important facts that I should request the broker to provide?

From my understanding a 20-30unit complex that would be considered a B-C class is a good start at a passive income.
Are there any pointers that other creo could please provide?

Thanks in advance for your information.

Re: When looking for potential apartment… - Posted by G_NJ

Posted by G_NJ on December 14, 2007 at 12:22:36:

-typical vacancy rate for the year (deduct this from the Gross income for “Effective” Gross Income. EGI-Expenses=NOI.
-make sure the NOI is not “pro-forma” or future/possible income. You want the real and current income.
-Find out market rents and compare to what current rents are for each unit. You want to see rents under market.
-always buy with cash flow but ideally there will be opportunity to force appreciation via vacancies that can be filled or rents that are under market currently. You want at least one way you know you can increase the income or reduce expenses which will increase income and the value.

PS - I am currently looking to buy my 1st property and by no means are an expert. Thought you should know.
I recommend Dave lindahls book “emerging markets in RE…”. Great bang for your buck. If you like him you can then look for his program on ebay or craigslist.

apartment - Posted by james

Posted by james on December 06, 2007 at 11:29:24:

Did you study local market as far as job growth, demand/supply for similar apartments, your expected returns(cash flow cash-on-cash etc.), and exit strategies.

Here is a good link to Ray’s article that can be very helpful.

I am sort of looking for apartments/mobile home parks in CA and nearby areas. Good luck and let us know about the deals.