- Joined
- Aug 30, 2007
- Messages
- 235
Hi all,
A friend and I are looking to invest in a small multi-family complex. We are interested in purchasing a distressed building (but solid and "decent) in a transitional, high traffic area with 4 to 8 suites...this depending largely on current inventories, current prices and how good of a deal we can find.
Our strategy is to purchase the complex, renovate and rent out at a premium rent (pending market conditions ofcourse). We would like to hold the complex for 3 to 5 years and then condominiumize and sell the units seperately.
We are Edmonoton based and not neccesarily Edmonton focused (again depending on what we find and what works). We have approx. 250k seed capital and would have to likely have to seek the additional funding associated with renovations. As a Realtor and active investor I do understand a cashflow situation so my questions do not revolve around that. As well, I have a renovation and building background so this is not my concern either...
1. What areas do investors recommend that will make this plan viable? Does Edmonton work when employing this particular strategy?
2. With 250k, what would be our approximate purchase budget?
3. Does this strategy seem viable at all and if not, what modifications will make it viable?
4. What, if any, will be the financing issues and how will a lender look at this deal (Which Sandbox) ? At what point does the lender look at financing multi-family a Commercial endeavor (how many suites?) ? And if it is classified a Commercial endeavor, what is the minimum downpayment...given the property information communicated above (distressed, commercial/residential)?
5. Our exit strategy is to condominiumize...Is this possible with a 4-plex, 6-plex, 8-plex?
6. What zoning regulations should we be aware of?
7. Would you recommend finding a good Property Management complany to look after it or can we do this ourselves?
8. What kind of initial reserve fund would you recommend?
9. Would someone with this kind of experience be interested in meeting with me (I`m from Edmonton!!!
) and helping out. BTW, lunch would be my treat!!!
Answering all or any of these would be fantastic help.
Thanks and really look forward to some answers,
Lucas
A friend and I are looking to invest in a small multi-family complex. We are interested in purchasing a distressed building (but solid and "decent) in a transitional, high traffic area with 4 to 8 suites...this depending largely on current inventories, current prices and how good of a deal we can find.
Our strategy is to purchase the complex, renovate and rent out at a premium rent (pending market conditions ofcourse). We would like to hold the complex for 3 to 5 years and then condominiumize and sell the units seperately.
We are Edmonoton based and not neccesarily Edmonton focused (again depending on what we find and what works). We have approx. 250k seed capital and would have to likely have to seek the additional funding associated with renovations. As a Realtor and active investor I do understand a cashflow situation so my questions do not revolve around that. As well, I have a renovation and building background so this is not my concern either...
1. What areas do investors recommend that will make this plan viable? Does Edmonton work when employing this particular strategy?
2. With 250k, what would be our approximate purchase budget?
3. Does this strategy seem viable at all and if not, what modifications will make it viable?
4. What, if any, will be the financing issues and how will a lender look at this deal (Which Sandbox) ? At what point does the lender look at financing multi-family a Commercial endeavor (how many suites?) ? And if it is classified a Commercial endeavor, what is the minimum downpayment...given the property information communicated above (distressed, commercial/residential)?
5. Our exit strategy is to condominiumize...Is this possible with a 4-plex, 6-plex, 8-plex?
6. What zoning regulations should we be aware of?
7. Would you recommend finding a good Property Management complany to look after it or can we do this ourselves?
8. What kind of initial reserve fund would you recommend?
9. Would someone with this kind of experience be interested in meeting with me (I`m from Edmonton!!!
Answering all or any of these would be fantastic help.
Thanks and really look forward to some answers,
Lucas