Norfolk, NE · Member since 2019 · 12 posts · 7 votes
Hi, my name is Bill Fallesen and I live in Norfolk Nebraska, I am totally new to this having read Rich Dad Poor Dad and finding Bigger Pockets in the last 2 months. I found a 7 small apartment home that needs considerable work but has a lot of potential. I ran the numbers on the 4-square sheet and it looks like I could have cash flow of over $1000 even after an extensive rehab, (I'm estimating $95,000 which would replace windows, vinyl side, replace roof, and rehab 7 apartments, 4-1 bedroom with baths and 3 dorms that share a bath. I have only run the numbers and driven by the house but have not seen the inside yet. I emailed the realtor but have not had a reply yet. Would a private investor consider something like this as I have no experience and how do I go about finding one? I posted this to New Members as I haven't done that yet. Hi everyone! Truly a green newbie!
...Would a private investor consider something like this as I have no experience and how do I go about finding one?
It depends on what you are bringing to the table. Are you a contractor? Are you paying cash for the property and need $95,000 to do the renovations?
Just based on the fact that you've presented a rehab estimate without ever looking inside the property is quite concerning. Now if you came to me with report showing all the estimates for all of the repairs that need to be done, and you had something to contribute, I'd consider it.
Norfolk, NE · Member since 2019 · 12 posts · 7 votes
7y
Thank you so much Steve, for replying to my question, I appreciate your remarks and advice. My experience is limited and dated as approximately 20 years ago, I remodeled my basement to a 1 bed ! bath apartment that I lived in while renting out the main floor for less than a year at which time I married and sold the house. I then rehabbed an old farmhouse using a contractor to put a basement under it and I then plumbed it completely, replaced wiring, sheet rock, windows and roof. Now 20 some years later, I am retired with a fixed income and a working wife but desiring the passive income that I believe that I could attain with rentals. I've been devouring as much info as I can from videos and blogs and became very interest in this opportunity. My plan is to seek out the realtor for a private showing and adjust my estimates for rehab. At that time I will run the info through the calculators for a more complete analysis. This property has only been on Zillow for 10 days and has 10 saves and 447 views already. Of course there is a fear that this really is a great deal and I will miss out on it because I do not have the cash for anything other than the 20% of the loan without the rehab money. I simply won't know until I can get a look at the inside. My original goal was to start with just a single family rental but as I was looking found this multifamily rental. Thank you so much for your time and consideration, it is greatly appreciated!
Rental Property Investor · Norfolk, NE · Member since 2018 · 9 posts · 1 vote
7y
I know exactly what building you are talking about Bill. While that building would cash-flow generously, it does need extensive work. I am going to take a look at it myself later this week! I know of a few investors who are interested, but fair warning, the property manager for that building is not one that you should keep if you purchase the building... Several tenants had to be evicted prior to listing the building because she put them in units without any egress windows...