All Forum Posts by: Aaron Foye

Blake, 

I'm not a loan expert, but I believe based on your financials the banks would approve your rental build after building your single family home.  I have also been told by my loan officer that they will allow the prospective rental income to offset the mortgage amount when considering the loan as well.  Trent Armstrong with Iberiabank is a very sharp guy that could probably answer all your questions when you're ready to move forward.

I can not speak to which market would be better for your rentals as I am not familiar with OK, but I have been studying the NWA market over the past year and currently reside in Bella Vista.  I believe this market is outside the bubble that we are seeing all over the country and it will continue to appreciate as the population is set to double in the next 2 decades.

I am in the early stages of something similar in Bella Vista and so far I have found two hurdles 1. Finding buildable (affordable to build on) lots that perc test and 2. the POA/ACC rules/regulations/desires. I would recommend getting very familiar with the POA/ACC guidelines for building before you start choosing materials as well.

If you want, shoot me a pm and Ill give you my number and we can talk some more.  I also work for a local plumbing company if you have any questions about those sorts of things.

Thank you Samuel, and that is correct, by exposing the view I created a lot more interest and value for potential buyers, I’m not sure what effect it had on the appraisal.

@Darius, 

I did buy when the market was down, but I paid far more than I should have, multi units in my area were going for about 50k per door at the time.  I think a few single families would have been a better option if I could go back and do it over again.  The good thing about the property is I lived 5 years mortgage free, so now I have the capital to confidently pursue more (better) investments.  I also learned a great deal about renovations, rental laws as well as interacting with tenants.  So while this may not seem like the best investment on paper, it was a valuable lesson and learning experience.  

I have yet to buy a single family for investment, what price point do you try to stick with and how do your units cash flow?  

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $124,000

Cash invested: $9,500

Duplex house hack, lived in for 5 years while slowly renovating. Both units now rented

What made you interested in investing in this type of deal?

I was previously renting from a friend who owned a similar property.

How did you find this deal and how did you negotiate it?

Found the property on the MLS, not much negotiation occurred because I was a green investor and wasn't well educated on purchasing real estate.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Gutted much of the owner occupied unit, new insulation, sheetrock, flooring, and fixtures. Paint throughout. 2 new water heaters (Bought with state credit) , high efficiency gas furnace, and metal roof. Most work DIY.

What was the outcome?

Forced some much needed appreciation. Building is now quite stable and cash flowing.

Lessons learned? Challenges?

Bought this property way too high for its condition and the season (dead of maine winter). There was much more room to negotiate a lower price on this property. I was a little over zealous with some renovations, fixing things that weren't broken and buying some materials that were expensive and would not increase value/cashflow.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $124,000
Cash invested: $7,500

Duplex house hack, lived in for 5 years while slowly renovating. Both units now rented

Investment Info:

Other buy & hold investment.

Purchase price: $22,000

Cash invested: $1,000

Sale price: $46,000

10 Acre Raw Land purchased from out of state seller who inherited the parcel. Asking price was 24k. I noticed the land was on a hillside so I hiked up and saw there was a potential view. I cleared many trees myself before finding a local with equipment who cleared the remainder of trees in exchange for keeping the timber. I also paid him $1000 for culvert/driveway rough in. Sold without realtor on FB Marketplace.

What made you interested in investing in this type of deal?

I knew this land was priced well below market value, and saw an opportunity for forced appreciation.

How did you find this deal and how did you negotiate it?

MLS, made quick offer

How did you finance this deal?

Cash

How did you add value to the deal?

Clearing lot, opening up view

What was the outcome?

200% ROI

Lessons learned? Challenges?

Land is a good vessel in my area for income, this set up my next land/single family deal

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Only purchasing realtor who was a friend

I was hoping someone could shed some light on the current status of the rental market in the Augusta/Waterville/Winslow/Fairfield area.  Since reasonably priced triplexes or greater seem to be getting hard to come by in the greater Bangor area, I've expanded my search south a ways and found there to be a bunch of multi's coming on the market in the Augusta area priced pretty reasonably.  Every seller claims to have "great rental history" and "low vacancy rates"  but I am wondering if this is true in an area with a declining population and what seems to be a saturation of multi units on the market..  If any investors or residents of the area could provide some insight it would be greatly appreciated!

Hello everyone,

For starters, I have been trolling the forums for a while, but this is my first thread!  I have a couple questions I would like to address but I wasn't entirely sure where to post them, so I will leave them here and have it double as my introductory post. 

A little background: I am 28 years old and currently owner occupy a duplex. I have no debt other than my duplex mortgage, a stable job, and pretty healthy savings for investment. I would like to start an LLC in the near future and purchase a 4 unit or larger. So first off, I would love to hear any recommendations you might have for my next move based on this description.

I have been eyeing an investment property that has a quit claim deed, likely due to an inheritance or divorce.  If I were to finance this deal and a title search is done and finds no liens and resolves whatever circumstance(s) that transferred this deed to a QC, can it be converted to a warrantee deed in my name?  Has anyone purchased a QC deeded property and if so, what happened in your situation?  Should I have extra leverage in negotiating a purchase price based on it being a QC deed?  The property seems to be a really good deal but has been on the market for about 6 months and I can only imagine the QC deed has something to do with this.

 Thanks in advance for the information!

Aaron

I ran into a noise issue with my duplex (circa 1890).  I found that the best way to mitigate sound is by installing insulation between the floors.  The only way I found to relieve squeaking boards or vibration noise transfer is new subfloor.  With that being said, I spent a great deal of time stuffing one ceiling with sections of carpet and insulation to eliminate noise, and after re-sheet-rocking the ceiling and moving in new tenants the sound still transferred through surprisingly audible.  I found that the noise was transferring down partly through the ceiling, but also through the hollow interior walls. Sometimes you cant win with old buildings, and you need to assess the cost/reward .  Like Nathan said, disclosure to tenants will keep everyone happy.

Good Luck,

Aaron

Hey Parker, I am currently owner-occupying a Duplex in Bangor, but I am also interested in pursuing more multi-family investment properties.  I'm finding many that come on the market are in need of a great deal of rehab or are in problematic neighborhoods.