My partner and I, age 21 and 22, will now have 5 units here shortly once we close on our second deal.
Our first deal was a duplex in our hometown in Northwest Ohio. The property rents for $920/month and we were able to find a motivated seller and buy for 32.5k. The property clearly needs some work done, roof & windows being the main two, but we know going in that we would have 20-25k to but into the building without feeling like we bought into a mistake deal.
Second, we are just about to close on a triplex, also in our hometown. Once again, we felt we had a fairly motivated seller. This property was kept in good condition, and the price reflected that, but we were able to negotiate the purchase price down to 124k. Rents amount to about 1750 at the moment, but we feel we can get rents closer to 1900 given the condition of the units and the fact that rents have not been raised in awhile. We do not anticipate any major capital expenditures for this property right off the bat.
As far as financing goes, I could certainly use some advice from Bigger Pockets. We were able to finance our first two deals with a line of credit agreement we made with a private investor at a very good interest rate. However, we ultimately want to eventually refinance our properties under mortgages so that we can reopen up our private credit line to buy more properties. Given that we have an LLC with two members under age 22, would anyone have any advice on our chances that every bank we go to does not just laugh at us? Will banks maybe give us a mortgage, but require that it be personally backed, making our LLC useless?
I would love to hear some feedback!