BiggerPockets

finally my deals are breaking...

Wednesday, December 02

after months and months of bidding at auctions, making over asking prices for reo's and making low ball offers on short sales bang!!!

Monday 2 condos i made offers on in Dec of last year were approved...the bank wants to close next week

Tues i nailed a renovated 3 family at an auction...need to close in 30 days...

Wed (today) another short sale 3 family was approved...need to close in 2 weeks... and the bonus is the broker tells me i can get the 2 family nxt door also!...this one fortunately wont be approved for a few months

now the scramble is on...i will probably have to let the 2 condos go...i hate leaving money on the table but i just cant fund them w/ all these other multi family deals right now...im trying to wholesale these condos but not sure if the bank will wait

 im trying to wholesale the condos and make anything i can but doesnt look good and bank doesn't want to wait...

if any boston investors out there these 2 condos could make you $100K with in a few months depending on a few factors...looking for $70K each...ARV of $120K...only very minor work needed (painting and re-finish hardwood floors)

1 year (almost) and still waiting - short sale...

Wednesday, October 21

i have purchased bank owned properties only so far...i have yet to buy a multi family via short sale, however i have about 15 units that i am trying to buy as short sales...anyways the broker of one property of which i put an offer in back in Nov/Dec of last year calls me today and says they have approved the sale...he says they are in phase 2 (whatever that means)...its a bank of america mortgage...

 the deal would be for $140K, needs about $15K-$20K in work and w. my hard money costs i'll be into this one for about $165K...ARV will be $280K and rental income will be $3900 per month with cash flow over $1500 per month on a 20 year commercial note

 its another 3 decker with 3 beds in each unit and 2 full baths...its a great deal and a cash cow...if this house was to hit the mkt it would easily go for $220K as is

 i hope im not getting too excited, i haven't done a deal since May of this year compared to 4 of these properties in 2008...lots of competition out there in my market especially on the bank owned multi's...  

still looking for next deal

Wednesday, August 19

my last multi family property was purchased in may of this year...rehab was completed about a month later in june and the property was fully rented as of july

 since then i have been looking and bidding on several multi families north of boston with no luck...

 i currently am sitting and waiting on 4 short sale deals a 

 today a friend of mine calls and wants me to look at a deal and wants to partner up on 3 decker property with him...he says he has an in with the realtor...we'll see...the property came on at $132K...i went to look at it and it wasnt that bad, a broken pipe or two, needs 2 new kitchens and 2 baths, every room needs to be painted and we'll shine all hardwood floors

 we put a full priced offer in and we are waiting to hear back from the bank

 after about $30K in rehab work, we will rent the 2nd and 3rd floors for about $1100 - $1200 and keep the 1st floor open for a month or two for an owner occupied buyer, should be able to sell for $250K

next deal hopefully

Sunday, June 21

so friday a property came on the mkt at 1:00PM...im there by 2:00PM...i have my offer in at 3:00PM w/ proof of funds...listing agent then sends a P&S contract to sign

 this property was priced at $129900...3 family property with 2 or 3 bedrooms in each unit...really nice property, does have a few broken pipes but lots of work done to it...nice yard, parking, new baths and kitchens

units should rent for $1200 each unit...needs about $20K in rehab....sold in 2006 for $475K...

keeping my fingers crossed on this deal...this one was priced about $100K under value....these banks just want these things off their books badly...i just hope i acted fast enough so that a bidding war for the property doesn't occur...

 banks are throwing out the baby with the bath water...

finished rehab...

Tuesday, June 09

just finished rehabbing my latest 3 decker...got it fully rented for $4150 for all 3 units...just have to get the lead paint cert for the first floor, i have the dust wipe test coming tomorrow, so ill be on my hands and knees cleaning floors and window sills tomorrow

now i just need to refi out of my HML

put an offer in on a 2 family today for $118K, asking $115k...i bet i dont get it...i have lost at least 10 deals lately to other investors bc most deals are going all cash...property needs a new roof and some outside drain work as well as some interior work where roof was leaking...needs about $25K in rehab...should be worth $225K ARV...i may try and flip this one... if i want to rent - both units should rent for $1400 each...will have good cash flow

multi family market in and around boston is picking up...many buyers looking for rental properties...inventory is shrinking also

going to my 2nd auction tomorrow...6 units, my # is $200K...i cant get into the bldg but from outside looks like it needs work...

last wk i went to my first auction, everyone there knew each other except me...o well, learning process 

next project underway

Sunday, May 17

its been a long time since my last multi family purchase...2 weeks ago i bought my 4th 3 family bank owned property since the start of Jan 08...i have basically been buying one every 3-4 months

the latest property is a huge 3 family with 9 bedrooms...bought for $180K, needs $30K in rehab...and will pull in $4200 in monthly income...i should cash flow around $2K per month

this is a buy and hold... i will refi out of the hard money and take back my cash i put in...i have a small bank that will write a 5 ARM at 6% and allow me to cash out 70% on the ARV...so once my rehab is done and leases are signed i need it to appraise at $300K to get my cash back...

 this one had six bullet holes in the front window but its actually located in a great area near the ocean on a dead end street...i know what your thinking but it really is a good area in a overall tough city north of boston...i spoke w/ a few neighbors and they said from the day that tenant moved in they were loud noisy and ghetto trouble, this on a street w/ most owner occupied homes

 one great lesson learned from this deal was networking...i bought this one from a realtor who sold me one last year and ive stayed in touch w/ him...he actually gave me a heads up that it was coming on the market soon so i had already done my research and was ready to go full asking price "cash" the day it came on the market

 the multi family market in my area is red hot...every multi 2 and 3 family that comes on the market and is reasonably priced draws multiple offers mostly cash offers too...this tells me we are going to see a little run up really soon and that the bottom might be in place

 good luck to all