23 Unit Multifamily Real Estate Investment Property Deal Analysis & Tour | Real Estate Ride Along
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- čas přidán 15. 09. 2020
- Join seasoned real estate investors Chris Lopez & Terrance Doyle on this episode of Real Estate Ride Along as they take you on a full property walkthrough of their 23 unit multifamily investment property in Denver, CO.
Make sure to stick around the end as they do a complete real estate investing deal analysis calculator report to show you all the numbers involved in this deal!
Join our community! - www.biggerpockets.com
The biggest thing I learned is that if you want to be a professional rehabber, financial skills are good but Spanish skills are better.
indeed lol
That’s the best 😂😂
Maybe the Spanish tradesmen and the American trades men should come together on pricing. I say this with respect to the quality of living!
hahaha,,, surprised this hasn't come up in other podcasts but the ability to speak Spanish is HUGE
If I was on an apartment tour and they said the units don't have ovens, I'd walk out.
ASL? lol
He doubled the rent, 800 to 1300, then low balled on the electrical. I can’t even watch the rest.
@@SweetEvieE4700 800 doubled is 1600, c'mon!
I haven't taken the leap into multifamily - yet! All my investments are in single family. These videos are very inspiring!
Good evening.
I'm a new investor in Texas.
This year I have bought 3 single family homes in top school districts for $660,000.
For 1 of them I paid cash i.e.$230,000 and other 2 are with 25% down.
How do you go about financing part in case one needs to expand?
Thanks a lot
@@bhupesh0111 great question! if you have owned the cash property in Texas for at least 6 months you can cash out 75% of the appraised value. I would start by talking with the lender that handled your other two deals.
Interesting. $1300 Murphy vs Upgrading electrical. Seems like electrical would have been the better investment. No oven in 2020/2021???
What a great show, love Chris & Terrance running through real numbers.
Great episode, love this episode. Great video for anyone interested in purchasing multi family property.
I'm under contract on a value-add 6 unit apartment building and a 1 acre vacant adjacent parcel zoned for Multi-family the East Valley of the PHX MSA and i love the walk throughs of your apartments and the financial breakdown.
I like the BiggerPockets calculator but I think it'd be best if you used your spreadsheet when it comes to the apartment buildings
Thank you guys!
Great walkthrough! We ran into a similar issue with our triplex except we were maxed on gas and not electric. Had to switch to an electric water heater to save on BTUs. Congrats on the property. Looks awesome!
I like y'alls show. Keep up the great work.
Ekikere Etokebe oh thank you so much!
I love this so inspirational!
My predictions: without a stove and what looks like a second rate bathroom shower, these units won't rent for the projections; cash flow will come in well below projections; and on sale, it will be lucky if they get a fraction of the projected profit
Arthur Schwartz $1350/ mo with no oven I agree
when you make such comment it shows you are new to the business
@@marcg3923 Keep us posted on how it turns out. Best wishes!
Like the efforts to make a video for us .. but I don’t see how framing/boarding/water proofing and tiles on the bathroom wall vs a glass panel would save money and looks worse
That shower is actualy nice and less maintance. I think the units should have had ovens though.
Now if there's an electric issue. Then you have to tear down the nice work you did
Great video. Lots of learning here
“Greatness is often built when no one is watching.”
Another an avid future real estate investors from S. Korea. Loved most of your videos how to make money! Keep it up!
I'm confused by the line of reasoning for no oven. So if the tenant demographic will not be cooking or eating at home, then what is the point of the dishwasher? If you do plan on cooking, you could also wash by hand. If you wanted eat some cookies you're supposed to leave your house and go buy some? To me not the best move considering a stove top + oven costs the same amount as a dishwasher.
Yes this was a pretty big mistake imo
Especially if ur going to spend on zero scape, murals, and Murphy beds.
Exactly
Yeah I was playing this in the background & I had to stop working and listen to what he was saying. It didn’t make sense
I'm always optimistic . But I had to check what year this video was uploaded the fact it was during this pandemic the lack of oven due to walking distance to restaurants makes no logical sense. Furthermore never cut cost to update the essential things like electrical and aesthetics . Also you already have a sink why would you need a dishwasher instead of an oven. Like even people in the tiny house movement have ovens
Plug the numbers in live. Great for learning.
You can remove that excess teflon tape from the shower arm. You won't create a leak because all the teflon that is working to seal the threads are inside that joint. Therefore, if you see it you can remove it
Since the calculator is built for single family BRRRR properties, what’s a better calculator for larger multi family properties with commercial loans? What other things should/could be included?
At the moment I’m far from this goal but when I raise my capital I’m definitely gonna have to link with you guys.
This is dope
Hello from Charlotte, NC!
Great video. I loved the live completion of the analysis tool, which made everything that much more real. I own apartments bought almost 10 years ago, so this analysis with more contemporary pricing is a good primer for my plans to expand apartment holdings in 2022.
I’m finishing up a rehab of a 17 unit complex in Jacksonville Florida and I faced a lot of similar issues. Overall, I like a lot of the things these guys have done - upgraded kitchen cabinets and pulls, nice subway tile backsplash, thicker LVF flooring, nicer floating bathroom vanity, zeroscaping and graphics on the outside of the building. That said, I agree 100% with the other comments regarding the electrical issue. In MHO, big mistake. Definitely should have upgraded it rather than give up an oven and downgrading the other appliances. Not even a microwave oven?? Yikes! Hopefully they won’t have problems when tenants bring all of their electronics into the space. And, if upgrading the electrical really wasn’t an option, I’d certainly sacrifice the dishwasher before I would jettison the oven. And the ship lap wall made of plywood?? For his target customer, I’d have spent the extra $100 for the real deal, or at least a higher grade of plywood.
If you want a profitable investment, projects like this always have trade offs. However, I always err on over improving kitchen and baths, and saving elsewhere. So no oven of any type would have been a non-starter for me, but overall I think these guys did a great job and I’m sure they’ll make a good return.
Hey Glenn. Small world! I'm a realtor here in Jax. Wishing you the best in your final stretch. Curious where the project is... have seen a lot of movement on the West as a whole; some 4plexes towards Riverside, etc.
@@jacobkamen9265 hey Jacob. The project is located at 830 LaSalle St in San Marco. We are now 100% occupied and we’re now finishing up by repaving the parking lot and redoing the landscaping. We just finished restoring the dock and one of our tenants will be using our boat lift. Very excited to bring the renovations to closure.
@@glennlkatz689 that’s awesome. You did a great job in bringing it up to trend. Let me know if you’d ever want to talk shop in finding your next deal
@@jacobkamen9265 Jacob - I'm always up to talking to anyone that help me find my next deal. Email me your contact information to Location3Cubed@gmail.com and I'll give you a call. Thanks!
29:10 That's a very professional looking spreadsheet; can measure up to Wall Street lvl standards. Where can I see that?
Love it!
I'm building an 8 plex brand new construction. Should I go with a forced air HVAC heating system or baseboard heat ?
That oven situation is a No sir for me, otherwise i love this project great work sweet finish i cant wait to do one.
Links for Murphy beds, please. Thanks!!
Question: Why not use a curtain rod and white curtain for the Shower? I Think it will accomplish the same look but also makes the bathroom looks bigger with the option to open the curtain? and swap the location of sink and toilet. My Microapartment ADU rentals are done that way and it works everytime!
Just a thought.
He did swap the sink and toilet. Also wasn't the wall for the shower unmoveable?
I believe because the goal was higher end property, which usually have glass shower doors
But glass doors are expensive, and shower curtains look cheap so I think the idea there was a middle ground decision that also matches the modern look
Wow, nice apartment tour...BUT NOT HAVING A STOVE IS DEFINITELY A NEW MISTAKE! I would have cut from other areas to make sure an oven was included.... and many Women that you feel you may cater too will like to bake/cook every now and again. A microwave will not cut it! 😂😂😂😂😂
Butcher block & the black counter top (black leather) used in this apt does not go together. Keep it simple. Cabinets are short. Get taller cabinets and choose a tile design that looks less busy so that the apt looks more spacious. Other wise the apt has a good framework
That plywood wall and no oven 😬😬😬😬
I thought the same thing. Ole boy wanna save money at the expense of his tenants.
I disagree. Should of upgraded the electric. You can always update appliances down the road. If there not enough power for an oven how are tenants going to move in with flat screen tvs, tablets, laptops, kitchen gadgets etc.
This real life Plus I’m not paying 1300 a month and not have an oven, that’s ridiculous.
I think this one of those times he need a woman’s input before starting the rehab. My wife has been instrumental in helping with little things women prefer. Such as door placement in the bathroom. What man thinks about needing the door to be open when his wife is blow drying her hair?
Terrence seems a little nervous about this deal. That's not a bad thing. It makes the show look honest, realistic, and ultimately more useful. No HGTV! Good to know even you pros can't do it all perfect all the time. It gives us beginners confidence to participate.
I like it
23.22 mark...she seems to be a little distracted ..🤔😀. Great info
She made eye contact 😂😂😂😂
lolol right after he's joking about having her move in too
Why doesn’t the bathroom have gfi outlets? Did this pass inspection?
Love commercial property ☝️☝️☝️
Hmmmm Navy Blue Accent wall...I think a more neutral color (charcoal gray) would work with most tenants color scheme.
So basically, what's the chance of an individual investor beating the market consistently. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me?
Buy and hold. Buy a little at first. Buy with a purpose and for the love of all thing do not invest more than you can afford to lose. Always have other, safer monetary channels and backup funds.
Actually pretty high if you leverage your money with a mortgage. The average house appreciates 3-5 percent per year. Put 20% down and the return is multiplied by 5. This doesn't include things like tax benefits, cash flow, and principal pay down. This is pretty extraordinary compared to the 6-8% you could get long-term (not even guaranteed) in the stock market.
Low cost index funds
Cool rehab, but how long did it take to find tenants for 23 ovenless units? I guess that's the PMs problem to deal with lol
So has this project been completed in full yet???
Why would some install a new boiler heating!!! Just do the electric baseboard !!
How much did replacing the heater system cost
Wow, I know that was extremely disappointing to hear about the electrical. Nice way to rebound though.
So all those renos and upscale appliances yet you dont throw in a $250 convection/microwave oven?
The no oven is a deal breaker for me. Cant roast or bake.. Now you will have tenants bringing in those portables ones.. :/
That would really suck. I literally cook everyday. I make 6 figures and I hate eating out
I don’t know about this. I think I would prefer an oven over a dishwasher.
24:17 I think he means every $1,000 is $20,000 on the backend at a 5 cap. I was super confused for a sec but I think this is what he meant to say.
How will I cook my fish sticks with no oven
toaster oven
Air Fryer
no oven, wow
Why are you using a BP's BRRR calcuator for a multi family property? If you want to go into multifamily I think you should know how to build a model from scratch
Good show.. thanks for taking time The calculation does not match. Your development costs on BiggerPockers is 850k vs 1250k on your other sheet. The numbers matched mean nothing..
They're initial plan was to syndicate the deal. So the numbers are right for what they are doing now
Only 300 a month for water and sewer? Seems really low.
Yup
Ok good advertisement, how do I invest with these guys?
Great content just don’t quote 25k off next time 😭 great content though 👍, every dollar counts lol
This is painful to watch coming from someone who has been in the rental game for 20 years and has owned multi-family rentals for close to 11 years this guy did everything wrong in the book. 1. He went over budget by 30%. What’s the point of a budget if you just keep spending regardless. 2. He spent between $10-20k on murals, almost $30k on Murphy beds, and $10k on fake grass but didn’t upgrade electrical and didn’t put in ovens! 3. He made every unit “unique” with different tile patterns and different accent walls etc. that’s why his costs were $200k more and it took longer than expected to complete. Have your contractor bang out 23 units that are all EXACTLY the same. Repetition makes less waste. He could have upgraded all plumbing, electrical, hvac, and completed half the units and rented those out started collecting rent and finished the other half 6 months later and still be much further ahead. If he thinks he can get $1300+ for these units he’s dreaming.
She is absolutely stunning
That tiny kitchen is cute, but did he say $30K ?? Cuz, WTF? Seriously ?
I think he meant $30k for each unit
After the final building is approved and the city inspectors are out of your way, then put in the ovens. But you didn't hear that from me
lmfaoo
Plug numbers in like this one
He didn't upgrade electrical because HES ALREADY 690 thousand dollars..... just into the renovation that's wild and it would have been hundreds more just to do that
question, how is it class A if it was built in 1960s? Not being a smartass genuinely curious
Its not by the year. Its by the area. I could go to the worst town in the US. Build a home. Does that make it class A?
No oven?? It would def be a NO for me. Smh
that plywood is osb not plywood
if he was doing this today it would be cheaper to drywall than OSB
He saved $100 per unit….lol
He’s $250-300K over budget
Also, who doesn’t PUT IN STOVES????
Good looking people in general have a tough time making casual conversation.
Put the numbers in wrong. Put 1050 for insurance he said it’s costing 12500
Anybody else see a connection between Lauren and Terrance?
asking price and paying 6% see why the seller didn't like brokers
so if win lottery or succeful sure or get hit by car take extra winning buy or build unit in cash if can or mix loan in and start real estate portfolia
Creative Financing
His demo is college young no kids younger couples
This guy made a big mistake unless his idea is to make sure single/students/newlyweds are the only ones that rent and not no long lease aka over 4 years. Because if your going to be in an apt. for that long (for years) then doordash or no doordash you will have a family and/or want to be able to cook your own food and also thanksgiving etc. etc. etc.. Not having an oven is the most idiotic idea that you can do unless as I said your idea is to make it where there are no long term tenants/family that live here. Also with the kitch he could have added another leg of the countertop by coming back around from the cutting board top for the stove top, Then t hey would have had even more space for cabinets and also countertop.
If the electrical system is to fragile for a oven, what will happen as others have said when the big screen televisions and computers and other appliances are being used 24/7. They should have upgraded the electrical system. But no, he put in the hide away bed (1300 dollars), downgraded already as he said appliances, was cutting costs all over the apt. to bring it in cheap (and nothing wrong with it) but a little investment in the future could have gotten him higher rent and the value would be higher. Oh yea, no glass door on the shower? I guess he doesn't figure that water splashes and it will get out. At the very least he should have put up a high shower curtain for the showing and/or put in a glass door.
Nice brick on the outside, I can't wait for the first day when stupid kids or gang bangers start to tag that brick building.
The guy in red's face says it all.
This gives landlords bad name
Is Nike sponsoring this video? lol jk
Ummm....a female wants to bake stuff. Geesh...in this current climate or any other who wants to go out to eat every night? I want to have thr option of cooking a nice meal. I rarely use a microwave. Im interested in revisiting this property to see how it goes. Maybe im wrong. I always want people to win. Sooo I hope it all goes well.
Wow I don't agree with any of this...😂
Who is going to buy an apartment with no oven? Like seriously? 🤣🍗🍖
No brandon no fun
Nice video. Real estate investment is cool but due to the present pandemic in our various country I think investing in Crypto Currency is the best decision one can make
Yes Sir.. you are right!!
Crypto is way more profitable than Real estate investment and Stock
Nice saying
I thought i was the only one who thought crypto trading has been more favorable than stock
@@elizabethlinda8785 Thanks dear for introducing me to Mr Thompson really appreciate all your efforts
No oven really? Are those people serious? So many efforts to make everything else nice... yeah i would never rent that, yes people actually cook lol.. 👎
This host is not good
Good job over coming problems, im needing the communities help for finding funding partners for a 18 unit apartment building with office both has basements divided in to two separate buildings which is great you can finish the one with the office first with one unit totally done to show I guarantee they all will be leased before they are finished. Its in a military base town located down town the city manager is motivated to help as much as they can, also another thought for the use of one of the buildings is making one a air bnb project making the rehab on both buildings very nice just under luxury being. Both building has 1-2 bedrooms with a few studio apartments, by it being a total rehab and being vacant you can make this what you want and keeping cost down in areas that wont effect the upgrading. Im in search of funding this would be my first and im hoping to look over some ones shoulder and learning from the best while not losing controlling interest and being thev boots one the ground im in Oklahoma. Any serious seasoned investor/funding interested send me your info i will send a full presentation of the area and the project. This project might sound scary but once its done it would be valued approx a million dollars plus or any where from $850k upv to over a million dollars do your own assessment. send your info to receive presentation to Loyaltyhousebuyinginvestments@gmail.com lets do this