今天決定放棄了一個40門的， Low income tax program的， wars listed 1.8 mil, 還在我家門口的，市場價估計3.5， 因為是LIHTC , 月租金2萬左右, 所以 base on CAP6 is at 1.8 valuation.
放棄的理由是 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, 如果買， 估計3年內可以 lift the land restriction, 但是這個3年要虧50-75萬.
這種項目， 是開發商開發的時候把錢都賺了，開發的 hard costs， 政府給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， 我就二話不說的買了，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.
繼續韜奮.
