My Partners and I Own 30 Doors. All LTR / Buy & Hold. AMA.
My Partners and I own 30 Doors. A mix of 2 / 3 / 4 /and 5 Unit Complexes. We buy with the properties currently cash flowing (although not necessary in our area (NEPA) and we can fill vacancies rather quickly (even PreCOVID). And utilize the BRRRR Method to compound (which has proven very effective).
We have done evictions/ general rehabs / emergency rehabs / tenant drama / you name.
I’m a RE Broker by trade but enjoy Investing and assisting my clients more.
Ask Me Anything.
HI Jeremy!
I am using your offer to ask you anything :)
Triplex owner in Scranton, ready to begin renting out the first apartment.
What's the best source to get a rental contract from? Any specifics for PA? Legal office I should work with?
Would love some advice.
Thanks!
Hi Haim.
Send me a message with your email and I’ll share the states standard contract with you as well as the Lead Based Paint Addendum for Rentals.
If you have any specific questions regarding it I’ll be happy to assist as well.
@Jeremy Watson
I am considering the Scranton market because of 2 reasons, 1. It’s pretty close to me. 2. The price point. I am looking at duplexes at the moment.
1. Is there a price point below which you would say to avoid due it possibly being a headache? I am looking at something where I’ll have minimum headaches to deal with when it comes to vacancies and also repairs.
2. Is there a realtor in the area you could recommend.
Hmmmmm...I got some for ya!
Favorite financing method on the BRRRRs?
Buying criteria/thresholds? What do you look for when you buy? Minimum CoC return? Minimum ROI? Minimum cashflow per door?
How do you find your deals? Favorite method to finding deals?
Do you plan any exit strategies?
Quote from @Kishan Kamath:
@Jeremy Watson
I am considering the Scranton market because of 2 reasons, 1. It’s pretty close to me. 2. The price point. I am looking at duplexes at the moment.
1. Is there a price point below which you would say to avoid due it possibly being a headache? I am looking at something where I’ll have minimum headaches to deal with when it comes to vacancies and also repairs.
2. Is there a realtor in the area you could recommend.
Hi Kishan!
1) Price Point wise..it all depends. I’ve found great deals at below $100K and of course great deals above. It all depends on a number of factors including but not limited to ; location / rehab / tenants / beds/ baths / parking. All in all, it all boils down to numbers. If the numbers work, we jump on it!
2). I’m a licensed Broker and am happy to help!
Quote from @Jeremy H.:Hi Jeremy (fantastic name btw).
Hmmmmm...I got some for ya!
Favorite financing method on the BRRRRs?
Buying criteria/thresholds? What do you look for when you buy? Minimum CoC return? Minimum ROI? Minimum cashflow per door?
How do you find your deals? Favorite method to finding deals?
Do you plan any exit strategies?
We finance through a local lender with conventional loans.(70% LTV) So far so good and we’ve been very happy with that route. Eventually we’ll turn into our own bank and utilize cash more.
Generally we keep things very simple. Appreciation is cool, but it’s not always our go to when acquiring.
However, if we see an opportunity for value add / rehabs and with my background in RE as a Broker knowing the local markets, we jump on it and take advantage of the opportunity.
Basically we want our cash flow or future cash flow to cover everything. (Debt Service, Maintenance, Utilities, Vacancy, etc). We mitigate risk by building in a 25% Vacancy into our numbers and thus far, it’s proven to work well especially since we rarely have vacancies except when we turn/rehab a unit. It also helps for the unforeseen (water heaters, flushed baby wipes clogging pipes, evictions, etc). On average, each door cash flows $350/Month for us.
We’re in this for the long run so slow and go is where we want to be/ we want it to be as boring as possible.
We’ve actually sourced all of our deals via the MLS thus far, minus one off market via a family friend.
Exit Strategy; we’ll hold for long term and continue to keep the machine moving smoothly and appropriately. We’re not opposed to selling off some if need be for bigger and better but ideally we’d rather acquire more. If someone ever came offering an adequate number for our portfolio, we could possibly bite, but otherwise we’re fine with holding.
Great questions / thank you!
How do you structure the initial capital contributions? Is it all equal or is someone a “money guy?”
Do you ever plan to dissolve or do you plan to hold together for forever?
Just curious as I find that partnerships work for seasons and then people change…not always in a bad way, sometimes in a sense of, like, they just want to take it easy after their success….not in spite of others, but sometimes someone else still wants to grind away and grow….have you ever seen that?
Quote from @Nate Sanow:Hi Nate.
How do you structure the initial capital contributions? Is it all equal or is someone a “money guy?”
Do you ever plan to dissolve or do you plan to hold together for forever?
Just curious as I find that partnerships work for seasons and then people change…not always in a bad way, sometimes in a sense of, like, they just want to take it easy after their success….not in spite of others, but sometimes someone else still wants to grind away and grow….have you ever seen that?
We all contribute equally capital wise.
As of now we have no plans of dissolving but we may cap out on acquiring at some point based off of the fact we self manage and have young families so all of the moving parts may become too much.
And I have absolutely seen that before / can see it being a possibility. I have a much larger interest and passion for RE than my other partners (not saying that’s better by any means), but I can see potentially partnering with others down the line in different ventures.
I work with quite a few other investors being a broker who have branched off to other partners for one reason or another (and like you mentioned, not necessarily because the other partnerships went south or were bad).
Thanks Nate!
Quote from @Jeremy Watson:
Quote from @Nate Sanow:Hi Nate.
How do you structure the initial capital contributions? Is it all equal or is someone a “money guy?”
Do you ever plan to dissolve or do you plan to hold together for forever?
Just curious as I find that partnerships work for seasons and then people change…not always in a bad way, sometimes in a sense of, like, they just want to take it easy after their success….not in spite of others, but sometimes someone else still wants to grind away and grow….have you ever seen that?
We all contribute equally capital wise.
As of now we have no plans of dissolving but we may cap out on acquiring at some point based off of the fact we self manage and have young families so all of the moving parts may become too much.
And I have absolutely seen that before / can see it being a possibility. I have a much larger interest and passion for RE than my other partners (not saying that’s better by any means), but I can see potentially partnering with others down the line in different ventures.
I work with quite a few other investors being a broker who have branched off to other partners for one reason or another (and like you mentioned, not necessarily because the other partnerships went south or were bad).
Thanks Nate!
Cool. Thanks for sharing
@Jeremy Watson
Thank you. Will DM