Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
Hey guys, I'm "momming" for the next few days so I have stepped away from my work and will have the freedom to give a few people who are ready to make moves some personal attention in moving forward with a deal. My goal this weekend is to help at least ONE...no THREE people get an accepted offer on a deal that will work for them.
Please help me achieve my short term goal to help YOU!
I invite any of my other BP'ers who have some time to jump in and also offer help. Can we get three newbies an accepted deal before Monday morning????? Challenge accepted!!!!
Investor · Tampa, FL · Member since 2014 · 20 posts · 11 votes
9y
@Cole Stoneman In the interest of not hijacking @Meghan McCallum 's thread, I'll message you directly. But feel free to share my insight on this post if Meghan doesn't mind!
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Yolanda Armstrong to be honest its been awhile since I uploaded mine. I just tried to figure out if I could change mine and to be honest, I'm not the most technically savvy myself. I can start you out by going to the top right corner of the screen and clicking on the circle where your profile should be. This will give you a drop down menu. There you can access everything.
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Yolanda Armstrong - Click on your pic in the upper right hand corner of the screen and choose "Settings". Then on the Settings page on the left there is an option to change your profile pic. I agree with @Meghan McCallum - it is best to always have a picture!! Good luck!
Andover, NJ · Member since 2017 · 8 posts · 2 votes
9y
@Jason Timmerman, @Jeremy Baker Monmouth county is tough right now. During the recession and after hurricane Sandy there were plenty of deals but it seems things heated up since then.
Investor · Farmington, NM · Member since 2017 · 7 posts · 3 votes
9y
@Meghan McCallum and @Ben Roddey, thanks for the help. I reached out to a mobile home park buyer and he gave me some great advice....combined that with your advice I'm going to pass on this deal. I looked at the deal and figured a 9 cap, however this is a very old park and their are some big issues I think will come up. @Ben Roddey you were dead on with the price being at least 100k above what I should pay for it. Thanks for making my first post on this site a good experience. Cheers!
Howell, NJ · Member since 2016 · 87 posts · 56 votes
9y
Jeremy,
I am pretty sure Camden is a no go. I work in Trenton so maybe I see it through a practical lens but I can't imagine a single person in the world choosing to live here. Newark is being gentrified so there is a market there but there is also a ton of competition. My partners and I really wanted to find a market in Monmouth or Ocean because it seemed like there are not a lot of wholesalers working those areas. But it has been a tough road so far.
Andover, NJ · Member since 2017 · 8 posts · 2 votes
9y
@Jeremy Baker I have a friend that's been investing in the Trenton area for years. He does section 8. Just not my cup of tea. Lol. I really don't know much about the Trenton or Camden areas though and I've never really researched those areas. Maybe look for train station areas as commuter hubs and industries that would provide jobs. Or school communities. I have a few homes in grade school neighborhoods that do well. I like families that want to rent for longer periods.
I think Middlesex county may have some opportunity for multi-family without getting into D class areas or heated markets.
I'm in Sussex county and you can easily find duplexes, triplexes, and quads in Newton and Andover that will cashflow. And they're not a ton of money either. I'm doing single family. Sussex county is a strange case. It's remained fairly flat. The county is depopulating and there's almost zero new construction. But there are renters here and they need homes.
Monmouth , NJ · Member since 2017 · 21 posts · 4 votes
9y
Meghan McCallum Jason Timmerman
Meghan , you read my mind.
Jason, I have a job that I work remotely at , so I've been hitting the streets of jersey for months and researching. If you want me to help bird dog I'm happy to do so. I'm just looking for exposure to the industry and experience so I'm not really asking for anything . Happy to donate my time if it helps
How can we connect offline?
So I like the article on asset classes of multifamily buildings . Ive heard people on the forum also apply this logic to Neighborhoods. How do you get a median age of a neighborhood? Planning board documents? What if the units all had different renovation dates?
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Jeremy Baker, yes...neighborhoods are often referred to this way. Median age of a neighborhood is never something I have given much care to finding the numbers on. I believe you can get them from sites as simple as wikipedia (anyone with better answers jump in!) I'm a boots on the ground kinda gal. So, I either have spent a small amount of time where I invest OR I network partnerships/friendships with people in the area. I'm leaving the SFH, MFH, and small apartment space to chase the dream of commercial real estate, so I love talking with investors here who I WILL NEVER compete against about the neighborhoods they like, who lives there, what they see happening in 2 years. Then I link that information up with local professionals. 3 RE agents, 3 commercial brokers, 3 property managers...I go as far as meeting with city officials...and I did that when I was just buying a house or two.
Most of your units will have different reno dates. I don't understand the context of the question. If you are looking to buy a building and then renovate the whole thing you want to do one at a time, that way you still have an income stream coming in to pay bills. Some rehabs can be done with the right contractor when the tenant is at work. Or renovate one and see if a tenant from a different unit would be interested in moving in.
Andover, NJ · Member since 2017 · 8 posts · 2 votes
9y
@Meghan McCallum Hi Meghan, I think what you're doing is great! I hope you can meet your goal this weekend. By the way, I see you're near the quad cities area. My first investment property was a duplex in Davenport about 13 years ago. I learned a lot that year. Best of luck! Sean
Virginia Beach, VA · Member since 2015 · 54 posts · 14 votes
9y
Hi @Meaghan McCallum and fellow BP! I am trying to purchase my first property. I am planning on living in it while rehabbing it but I need a little help. Ive found a place that could use some work and would give me a good amount of equity once renovated. However, I am seeing some mold in the shower ceiling and a little under the master bathroom on the first floor. I dont want to get too in over my head and I know mold could turn out to be costly to repair. Do you have any suggestions. It is a short sale property in a highly sought after neighborhood. It is listed at 140k, comps are around 180-190k and it could rent for 1500. It is a 3/2 townhome in Virginia Beach, VA. I submitted an offer but seller is requesting to have the repair cap section of the contract taken out, where if the inspector finds any termite, mold damage etc they would not pay the 1% of the repair. In addition the seller countered with the request that the inspection be done up front as oppose to after bank approval. What are your thoughts? Should I offer less, do the inspection and maybe use a 203k for any major repairs? Thank you!
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
Hi @Noelle Yarn. I'm in VB also. What is your end goal with the property? The numbers you presented do not sound like a good deal for an investor to me either for a flip or a rental. Is this house in Windsor Woods by any change? I'm wondering if it was one of the hurricane Matthew flood victims. Mold is a bathroom that doesn't have good ventilation is normal. Any bank will normallly let you make an offer contingent on a moisture termite inspection. Replacing the bathroom subfloor because of moisture damage is a very commmon rehab repair and is not something that should worry you as long as you budget for it. You want to make sure the house doesn't have mold everyplace though. If it's in the walls it will be a very costly remediation.
Hi @Noelle Yarn. I'm in VB also. What is your end goal with the property? The numbers you presented do not sound like a good deal for an investor to me either for a flip or a rental. Is this house in Windsor Woods by any change? I'm wondering if it was one of the hurricane Matthew flood victims. Mold is a bathroom that doesn't have good ventilation is normal. Any bank will normallly let you make an offer contingent on a moisture termite inspection. Replacing the bathroom subfloor because of moisture damage is a very commmon rehab repair and is not something that should worry you as long as you budget for it. You want to make sure the house doesn't have mold everyplace though. If it's in the walls it will be a very costly remediation.
this is in Kempsville Lakes. I would live in it for at least a year or two and then use it as a rental. I don't believe it is in a flood area. I suppose I am trying to kill two birds with one stone. I need a place to live but would like it to also serve as a future investment. I am just getting started and Id rather work with an investor in the area (lend a hand) so that I can see how the numbers work exactly and also how to do repairs. What would you suggest Patti? My realtor wrote in the contract that the inspection and appraisal would be done after bank approval. The seller is requesting the inspection be done before bank approval. Should I stay away from something like this?
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
@Noelle Yarn - Inspections cost time and money. Short sales offers have a high percentage of rejections. I would never pay for an inspection without a bank approval.
Kempsville Lakes did experience significant flooding. See this news story. http://wtkr.com/2016/10/10/flooding-caused-by-hurricane-matthew-still-a-problem-in-kempsville
What's the condition? What work needs to be done? Unless it is close to perfect, it's not a fit for an investment property, in my opinion. What formula are you using to decide if something meets your rental criteria?
Real Estate Agent · Utica, MI · Member since 2017 · 15 posts · 2 votes
9y
posted 44 minutes ago
Al Phillips Residential Real Estate Broker from Utica, Michigan
I have found a 5 unit apartment building I would like to purchase. I owne a real estate company and a management company and own several of my own single family homes. This is my first attempt at a multi-unit. Please let me know your thoughts on this one.
Purchase price: $140,000.00. 5 1BR units Total SF: 2,500
Owner carry back second mortgage. $40,000, interest only for 4 years.
Financing: $100,000.00 (commercial loan I think)
I will cover closing costs, after close fix up etc of about $20,000.00 (cash in bank)
Rents per year $37,000
Expenses per year: $22,179 (not including any financing costs)
The interesting part of this deal is that the units are individually metered for gas (heat) and electric yet the landlord pays these bills. I could purchase this property and start charging for gas and electrick and that would decrease expenses by about $550/mo
I wish I could figure out how to attach a link to this post of my analysis on the Bigger Pockets rental calculator.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
@Al Phillips - From you profile it looks like you have a tone for experience renting in your market. Do you currently manage any one bedroom apartments? In my market they are very difficult to rent. There's not enough of a rent differentiation between a one and two bedroom. People who qualify for a one bedroom, almost always qualify for a two, and would much prefer that. Even our one bedroom SEC 8 voucher holders can qualify for a two bedroom apartment. Looks like your rents are ranging about $$600-650 from your annual rent total. That's exactly the same as in our market. Two bedrooms at $750/month are plentiful. I do love that the meters are separately metered, but would not want a building with gas heat. It may be different in Michigan because of your extreme cold, but here low income tenants avoid rental with gas. They don't have high credit scores so they always need a deposit for every utilities. After saving for rent, rental deposit, water deposit, electric deposit, they don't want to come up with a gas deposit if they can find a place with all electric. This will result with your vacantly rate in this building being much hither than the rest of your rental portfolio.
That said, based on building proximity you may have an opportunity to a niche market. For example, we are in a military area. If I had a multi-unit of one bedrooms next to a base, I'd furnish them and offer military housing to the low ranking folks as an alternative to living on the ship.
Real Estate Agent · Utica, MI · Member since 2017 · 15 posts · 2 votes
9y
@Pattie Robertson
Pattie, thanks for the advise. Here is Michigan pretty much everyone heats with gas due to the temperatures. Electric heat is very cost prohibitive compared to gas heat. This building is in a small town with NO one bedroom rentals except this building and there is a waiting lest (as per the present owner) for future occupancy.
My big concern is that it is one hour from my office not to mention I have never done a multi-family before.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
@Al Phillips - I figured that on the heat. Anything for rent all inclusive at $600 would have a waiting list, don't you think? Once you start making the tenant pay for utilities, I doubt you'd have that same demand. Has he shown you the actual utility bills so you have a true cashflow analysis? Looks like you are running about $370/month in utilities, bringing your actual net rent down to less than $300/unit. No surprise why there would be a waiting list for this building at this amount. That's cheaper than a week in a hotel. You can't really based your future income and vacancy on what he has been doing. That said, the fact that the Landord is doing such a bad job at creating cashflow may provide you an opportunity buy the building way below the true value. $28K/unit is pretty cheap, but it is essentially following the 1% rent rule based on the current owner's numbers.
Somerville, MA · Member since 2017 · 5 posts · 0 votes
9y
Meghan hi I'm completely new (newbie) right now and probably only been on BP for a week. Trying to get my feet wet with wholesale in the Boston, Ma area do you or anyone else have any insight on this ? Anything would be greatly appreciated !! Look forward to hearing from you!
Virginia Beach, VA · Member since 2015 · 54 posts · 14 votes
9y
Patti Robertson
I used the BP rental calculator. The kitchen is in good condition and recently updated. The bathrooms mainly toilets need to be updated. New carpet and paint upstairs. There is a gutter missing, needs new screens on the windows and a new post outside and like I mentioned some mildew on the ceiling in the master bathroom and a leak spot on the first floor ceiling beneath the master bathroom.
I dont think I will continue with this property. Being new to this Im finding it difficult to find properties on MLS that will give me the equity I want with what I qualify for. I really thought this one would be a good start.
Rental Property Investor · Delray Beach, FL · Member since 2015 · 63 posts · 41 votes
9y
Thank you, Meghan, for offering to help and teach others. I am a die hard teacher and endlessly help people with their careers, etc. (mainly in Senior Living), so I appreciate you giving back too and will take you up on it.
I'm an experienced real estate owner/landlord (20+ properties over time, all of which profited 50% or more over PP + cashflow), but only now starting to formally be an "investor", hence seeking a financing strategy. I'm in a classic dilemma:
Strong credit 740+
Net worth >$2.2M (primarily in equity, so not easily liquid)
Great track record in real estate
Self- Employed in same industry/field for many years, with YoY growth in income.
Almost no revolving debt (two car payments and varying credit card balance, but minor)
Tax returns UNDERSTANDABLY write off as much as possible (income looks low), so QM lenders can't read between the lines.
Debt/Income ratio is high (55%) when considering tax returns as the source our net income and then mortgage payments on my 4 properties (not apples to apples).
Asset based qualification seems to be a rare process? I have >50% LTV on every asset I currently own, let alone the positive cashflow from each!
I am talking to private lenders and hard money lenders now. What else should I do? SO FRUSTRATING! Someone with a 1099 and no portfolio or net wealth have more clout than I?