83. Deal deep-dive: Underwriting an 11-unit deal in Jacksonville with Steven McAdoo and Marc Hassan Westside Investors Network

ABOUT STEVEN MCADOO 
As Director of Multifamily Investment Sales in Franklin Street’s Jacksonville office, Steven McAdoo represents investors in the acquisition and disposition of multifamily assets throughout the North Florida market. Serving as a trusted partner, his goal is to maximize value for his clients in every transaction while providing first-rate service and communication. 
 
A Jacksonville native and the University of North Florida alumnus, Mr. McAdoo possesses a strong command of the market that allows him to represent his clients with knowledge and authority. Before transitioning to brokerage, Mr. McAdoo worked in accounting and finance for several industries, including commercial development. Today, that background provides him with meticulous attention to detail, along with expertise in analysis, underwriting, asset management, and investor relations. Prior to joining Franklin Street, Mr. McAdoo specialized in multifamily investment sales with another commercial brokerage in Jacksonville and later co-founded his own private brokerage and investment firm. 
 
 
ABOUT MARC HASSAN
 
Marc Hassan was born and raised in Jacksonville where he graduated from Bishop Kenny High School in 1997. He then went on to graduate Magna C*m Laude from Jacksonville University with a B. A. in English (Major) and Business (Minor). In 2003, Marc earned the degree of Master of Business Administration (MBA) from Jacksonville University. Marc, his wife, Meghan, also a Jacksonville native, and their three children continue to call Jacksonville their home and remain active in the community. 
 
In 2007, Marc founded Spectrum Realty Property Management with the primary focus of supporting the needs of his real estate development projects and companies. After extensive planning and reorganization, in 2015 Marc launched a new branding effort with the intention of growing Spectrum into the trusted leader in Northeast Florida for property management and real estate brokerage services. Marc is leading Spectrum Realty Property Management on the path to redefining the traditional model of a successful real estate firm. 
 
 
 
 
 
THIS TOPIC IN A NUTSHELL:
 
Short Intro and career background – Steven & Marc
About the Deal:
Background location and opportunities
Pros and Cons of this location
Capital Expenditures, Conditions, and Capital Improvements 
Target rents and unit mix
Vacancy and desirable areas in the Florida market
Tenant damage and Security deposit
Concessions, Bad debt, Loss to lease 
Landscaping and contracting services
Taxes and Insurance 
Portland vs. Florida market
Re-assessment of taxes and value of property
Management fee and Leasing fees
Repairs & maintenance
Natural calamity and its effect on the Insurance market
The typical expense ratio for this property
Net operating income
Strategy on loans
Projection and market rents
Debt coverage ratio
Cap rates and Interest rates
Connect with Steven and Marc
 
 
 
 
 
KEY QUOTE:
 
“Different people have different methodologies, some people want to get the rent roll as close to market rent as quickly as possible, and some people would rather know that turnover is expensive because of the repair cost & the amount of loss rent. It's really just a matter of personal preference on how you like to operate properties.” – Steven McAdoo
 
 
“You do have to be strategic about it if you've got four leases all coming up in the same month. You may not want to be testing the waters on all 4 leases on an 11-unit building all at once. You got to look at how the rules lay out but I'll start with the first renewal coming up and push it to the market. If I need to get someone new in, set the tone and I’m gonna get max rent as quickly as I can.” – Marc Hassan
 
 
 
 
 
SUMMARY OF BUSINESS:
Spectrum Realty Services LLC - founded in 2007, Spectrum Realty Property Management’s primary focus is supporting the needs of its real estate development projects and co