Real Estate Broker · Dallas, TX · Member since 2014 · 156 posts · 20 votes
After 6 months waiting, I finally closed on my first 9 unit MF deal this morning!!!!
And, my general contractor quit earlier this week because he has other jobs that keep getting bigger (and he probably got tired of waiting on me), so I am starting from scratch ...
Investor · Edmond, OK · Member since 2011 · 166 posts · 31 votes
12y
You can definitely do this. Great job on being patient and getting the deal done. Care to share the details of the property? Scope of work that needs to be done?
Investor · Chicago, IL · Member since 2013 · 451 posts · 96 votes
12y
Congrats - This wont be the last time jobs get conflicted with schedule. Im in the process of developing a team myself (2 of everything, contractors, plumbers, handyman, electrician,...).
Real Estate Broker · Dallas, TX · Member since 2014 · 156 posts · 20 votes
12y
Thanks everyone, it's been a stressful weekend as I am feeling a little overwhelmed. But you are correct, it will be good in the end
@Account Closed I am an agent and found the deal in MLS. I did have to put an offer in without first seeing the interiors because there were quite a few interested buyers waiting for appointments. I just used my feasibility period for viewing and due diligence.
Real Estate Broker · Dallas, TX · Member since 2014 · 156 posts · 20 votes
12y
@Account Closed not so funny! You must have been in my thoughts all weekend. I think I've come to the conclusion that the worst thing that can happen is that I turn around and stick a for-sale sign back in the yard and call it a day. But I've waited 6 months and even though my GC left me and I am starting all alone, I know this isn't rocket science and I have enough contacts in the industry that I can make some calls tomorrow morning and all will be ok!
Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
12y
@Account Closed I shed a mental tear for you. I know that your lack of knowledge is goingg to end up costing you lots of money, to the point of putting you out of business. You must do the legwork. Must must must. How do you know what a good price for contractor is? How do ypu know they know what they are doing? How do you know its necessary? How do you know that they didnt cut any corners? Rocket science? No...experience needed to not get screwed? Absolutely.....imagine it like you are playing 15 games of chess simultaneously.....only youve never played chess before. I would suggest you pay an experienced investor to guide you. I would think the education from a well seasoned landlord would be worth its weight in gold. You need it. What iff that 125000 rehab should actually be 60000? Big savings. Things like that are key that you probably wouldnt be able to determine.
Real Estate Broker · Dallas, TX · Member since 2014 · 156 posts · 20 votes
12y
@Account Closed I appreciate the advice. I don't think the situation is quite that bad that I need to pay someone to help me through it. Plus, I can get all of the advice and answers I need right here on BP.
Although I have not owned a MF in the past, I do have 10 years experience in real estate and own several other rental properties (SF and commercial). And have even done a very successful flip, which I sold with owner financing. I have experience in remodels and I am 95% sure that my estimated costs are on target. My budget includes overages for unknowns and I will be working with individual contractors that I have worked with for years on other client projects and my own. The only difference now is that I won't be paying a GC, I will be acting as one myself, which may require that I temporarily put my real estate sales career on hold, but that's ok with me.
I could probably rent the units as is if I wanted to take a little less rent. All of the units are in livable condition (except one) and rental properties are in high demand in the area.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
12y
Originally posted by @Account Closed:
@Account Closed I shed a mental tear for you. I know that your lack of knowledge is goingg to end up costing you lots of money, to the point of putting you out of business.
Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
12y
Originally posted by @J Scott:
Originally posted by @Seth Sherman:
@Kim H. I shed a mental tear for you. I know that your lack of knowledge is goingg to end up costing you lots of money, to the point of putting you out of business.
Was that really necessary?
Hows your rental property going? Found a section 8 tenant to ***** incessantly and destroy your house without being accountable for any of it? I cant wait to read your updates as your tone gradually changes when dealing with tenants. Clearly if i wrote it i felt it to be necessary, dad. Being a landlord is a harsh world where nice landlords get stomped on. I hope she doesnt suffer the rude awakening of carrying a half million nut while depending on people trying every way to not pay their rent to cover it.
@Account Closed keep us update. I'm sure you'll do well. You already have a back up plan that in the worst case scenario you can re-sell, possibly at a profit, if you market it well and do some cosmetics.
Remember to get tons of estimates, and references from contractors.
Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
12y
Originally posted by @Account Closed:
Hows your rental property going? Found a section 8 tenant to ***** incessantly and destroy your house without being accountable for any of it? I cant wait to read your updates as your tone gradually changes when dealing with tenants. Clearly if i wrote it i felt it to be necessary, dad. Being a landlord is a harsh world where nice landlords get stomped on. I hope she doesnt suffer the rude awakening of carrying a half million nut while depending on people trying every way to not pay their rent to cover it.
Being a landlord can be a pain in the ***, but it's still quite profitable in the long run. I'm a long time landlord and have dealth with many crappy tenants who have literally destroyed the insides of newly remodeled units.
Or tenants who are late every month and have every excuse in the book why they can't pay the rent, but will get new chrome wheels on their cars and a flat screen tv.
Then I look at the passive income I get and the flexible lifestyle and schedule it gives me..... deep breath...life is good ^_^
In the long run you will most likely make money though. In 10 years Kim will be happy she did this when she has a property worth more than double and that brings in positive cashflow with decent tenants -- Appreciation, rent increases, inflation, and "passive" income