As of Summer 2014, Cap Rates for Multi-Family units in Las Vegas are closing in on Cap Rates for Single Family units with a straight lease. We have not seen any Multi-Family units that come close to SFRs under $100k that have a lease/option tenant. That said, Lease/option tenants in SFRs under $100k generally have Cap Rates approaching 15%. We will be happy to furnish you with case studies.MULTI FAMILY LISTINGS
Proof Of Funds
We will not even go scouting with investors without proof of funds. Scouting for multi-family takes hours of work and preparation.
If you are not a U.S. citizen, proof of funds must be in U.S. dollars. Sorry. This is a requirement by sellers, not us.
If you are getting financing, the lender approval letter must be in the name of the entity purchasing the property. You can change the name on title after the property closes but you will be paying the cost of title transfer and property sales taxes which is about 1% of the property.
If you want to purchase the property under an LLC for example, the LLC must be the one showing proof of funds. This is a common problem.
Privately Owned, Partnerships & LLCs
The purchase of a property by a married couple or single person is a piece of cake and the simplest process to purchase a property.
LLCs are the recommended entity for purchasing a property. HOWEVER, many LLCs do not have the ability to get financing.
To obtain an LLC, feel free to contact Wendi – Our Staff Notary Public – by calling: (702) 619-6215 or filling out our Contact Form. She can facilitate this process on your behalf.
Partnerships are the most difficult entity and we will not work with partnerships greater than 2 parties. The purchasing phase of a partnership is a piece of cake. Problems always occur when major repairs are required or when it’s time to sell the asset.
The scouting phase (viewing about 3 properties) is free.
A $2000 retainer fee is required for hunting multi-family units. There is a tremendous amount of effort required to verify stated rents and verification of leases. You will be credited this retainer fee should a transaction occur.
Inspections & Appraisals
Inspections run about $100 / door for properties under 20 units. Limestone Investments requires an inspection report.
Appraisals will cost about $3500 but are not required by Limestone Investments. If financing is used, your financial institution will require an appraisal and costs vary greatly. Since you have no control over that, you will just have to get over it.
If you decide to use us for your property management, we charge a one time $200 set up fee to wrap our minds around your existing tenants and leases.
Most landlords have deplorable records and we have found this to be exhausting.
Our full service property management is 8% or a $50 minimum per door.
We typically do not to participate in Section 8 vouchers. We have found that the damage caused by these tenants far outweighs the guaranteed income and the cost to set up a tenant is ridiculous. However, if you currently have a Section 8 tenant in place while switching your property management to us, we will honor any relevant contracts you have in place.
Citizenship / Taxes
If you are a US citizen or have a US registered LLC, you will be issued a 1099 at the end of the year and it’s a piece of cake.
If you are not a US citizen, you must have an LLC in the States with a Federal ID number and a registered agent.
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