今天决定放弃了一个40门的， Low income tax program的， wars listed 1.8 mil, 还在我家门口的，市场价估计3.5， 因为是LIHTC , 月租金2万左右, 所以 base on CAP6 is at 1.8 valuation.
放弃的理由是 compliance requirements, bank needs 3rd party management reports, if so, management fees and in place onsite management will cost 100k a year, near half the total collections.
LIHTC, low income so some units are like just $20-50, Only 30% of the units can go market rate, 如果买， 估计3年内可以 lift the land restriction, 但是这个3年要亏50-75万.
这种项目， 是开发商开发的时候把钱都赚了，开发的 hard costs， 政府给10-15年的 tax credits, the developer then go sell these tax credits thru syndication, after they got all the money back, then they donate the property to a non profit organization, which they also control, after so long they can go thru court to lift the land restriction ban, and then bring rents to market.
如果是去年或者前年， 我就二话不说的买了，because if able to lift land restriction ban, it can easily worth twice, but this year I'm facing lots of operation pressures, don't want to spend all my cash on hand, as we may still going to see some tough time in the near term.
继续韬奋.
