My First Deal = 6 Doors!

89 Replies

Congrats and thank you for all the details and creative financing. I am struggling to to find options for financing myself and this helps to point me in the right direction .  Do they have an meetings in the New Orleans  Area? 

@Josh R. I love the thoughtfulness on this deal.  Commercial loans are must more flexible than residential and allow for some FUN CREATIVITY on our side as investors.  I love the structure you built.

Two quick questions...

What types of tenant class are you seeing in Rocky Mount? 

That are have high vac rates? 

In our area low rent areas tend to struggle in both these areas.  That is why we have been investing out of state the last 2 years.

@Josh R. congrats to you! Keep us posted as Rocky Mount is an interesting location pick.

How does you wife like the WIRE meetings?? I have been wanting to start to go to the TREIA meetings but I work every M-W night and that's when most meetings are :/

Congratulations @Josh R. !  Thank you for going in depth about what happened before you found a deal.  Networking is crucial and so is taking the time to educate yourself about what to do when a deal presents itself.  This motivates me to continue my education and networking on BP and local group meetings.  Keep up the great work, I have no doubt you guys will be doing incredible things in the future.

Originally posted by :

There is a new meeting that started for the Northshore.......Slidell, Mandeville, etc.  https://www.lanorthshorereia.com/about-us.html

All are welcome to attend the Northshore REIA. I run it and it's a free event designed to help as much as possible. Lynette, let me know if I can help in anyway. Thank you for sharing Michelle!

Originally posted by @Daren D Wagner :

@Josh R. I love the thoughtfulness on this deal.  Commercial loans are must more flexible than residential and allow for some FUN CREATIVITY on our side as investors.  I love the structure you built.

Two quick questions...

What types of tenant class are you seeing in Rocky Mount? 

That are have high vac rates? 

In our area low rent areas tend to struggle in both these areas.  That is why we have been investing out of state the last 2 years.

I can sort of answer your question.  Talking with two of the largest property managers in rocky mount (who collectively manage around 3000 doors) the current vacancy rate for the entire area is 5-10 percent.  One of the property managers told me its the lowest now then they've ever seen it in the 30 plus years they've been managing.

The tenant class in a lot of these areas is lower income.  The average household income for rocky mount is about 36k a year.  That being said most landlords I speak to out there, are not really doing section 8.  If your rent is 400-500 for an apartment, I would classify that as probably a type C area/apartment.  There are areas to avoid (just like everywhere) but there are lots of other areas where its changing for the better.  Major industries include healthcare, banking, factory/warehouse type jobs.

Rents can be as high as 1600 plus in areas of Rocky mount, so you can have the entire spectrum. 

Hope this helps.

What a great article, if I may, I would've want to see how much you are cash-flowing on each prop. It seems you aren't initially, but will after the rehabs. If so, you could show the projected cash-flow and a few months from now you could write another article (maybe an update?) with the real results. either way, congrats. That (besides the waiting time) is a very inspirational story. Thank you. 

@Daren D Wagner So the class of properties is C class. Now what my plan is will be to remodel the properties to a B Class property in which turn we will be able to screen our tenants properly who will take care of the unit and treat it as there own. This will alleviate some of that preasure of vacancy due to things not working/being fixed and having accomplished the work of screening up front by putting a valued tenant in there with motivation to stay as my properties will raise the bar for the area and people will want to stay and do everything they can to do so. At least thats how I am attacking the problem. 

@Devin Otway Cover way more ground when you and the Mrs. are both in this together and can divide and conquer :)

@Josh R. - Congratulations and thanks for posting.  I am living in the Atlanta, Georgia area and I am so impressed with the work that you have done that I will be implimenting some of your suggestions.  I am new to the real estate investing, without a contruction background but I know I can be successful as well.  I do enjoyed your post.  Thanks for posting.

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