All Forum Posts by: Adam Morgan

Sorry, forgot insurance too.

Adam

Hey Ryan, sounds good up front. I just bought a quad with similar numbers in GA, but paid 90k and total rents were 1600. Things to remember: are you paying water, trash? Electrical seperatly metered? new HVAC is nice. I would say your. CAPex number is a little small. I like to actually figure it out based on remaining life span of everything and converting that to a percentage. I would say run the numbers again and go for it, but I dont think it will truly cash flow more than $400.

Adam

Hey here, Im an HVAC service tech in GA, and I would say those prices are pretty average for a "reputable" company. Might find them cheaper to some guy in a truck but what everyone said about warranty and it being done right the first time is correct. Price for a GOOD tech can easily be $200 an hour. Plus parts. I guarantee you, you can find those valves online for half the price, but you cant get your boiler fixed online if you know what I mean.

Adam

May be a silly question, but you say you are anti debt but you are willing to take a title loan. Those loans are probably some of the highest interest rates you will find anywhere. I agree with getting a credit union to make a personal loan with the car as collateral. If they are only 3-5 years old you should be able to get a loan for under 6%. Much better than a title loan. 0% intro cards are some of the best hard money around if your credit is good.

That does say 4% MONTHLY right? As in 48% yearly interest on a 50% collateralized loan?

@Alisa O. I just made sure I was happy with any of my 3 offers. I liked the low interest rate. Or the low down payment, or the much lower price (after refinancing to a lower bank interest rate). If I knew more about what the seller wanted, I could have narrowed this even more. Turns out he wanted the higher sales price and didn't mind giving me a low interest rate, or a no prepay penalty. I'm sure there are better deals than 5% interest out there, but I got it for less than 5% down (and no credit check/no bank qualifying....) i did give him a guarantee in my offers that I would put 3k into each unit the first year, but this was ultimately left out of our closing documents. The work will still go into the units as I feel they will rent much faster and 3k goes quick when you think about it. Just explain it to make it sound like a down payment. Down payments are your "skin in the game" to the seller, if you default, they keep your down payment. I just explained that if I default, he now gets back a fully renovated building rather than one that needs work, and it would help me assure he got his mortgage payments because the units are rented rather than vacant because my rehab money was spent as a down payment that does me no good.

@Mark Forest for the original purchase contract I used a downloaded copy of the Standard Georgia real estate contract. I'm sure each state would have a generally accepted form. This one was approved by the Georgia Realtors Association. I just took a signed copy of our purchase contract to a local real estate attorney that I was recommended to here on Bigger Pockets and he wrote all the required stuff like title search, deed, note.... About a week later we all met at his office and did a standard closing. I think I have bought about 10 houses in the past the regular way with realtors and this was the first closing I have ever been to where the seller was in the same office at the same time. A little different, but nothing in the process was hard or confusing. The attorney was very clear that he would not have done the paperwork for a seller financed note if I was going to occupy the property due to the Dodd Frank/Safe act, but since it was clear I was purchasing as an investor, he had no problem with it.

@Alisa O. I actually found it on craigslist he. I did a search for owner financing. I bought some land a while back on owner financing and knew it was probably the only way I was going to be able to structure a deal right now. We used a standard deed transfer and note, but I have used a land contract in the past were the seller kept the deed in his name. I presented 3 offers because I didn't really know what the seller wanted. Asking price with nothing down and a low interest rate, a lower price with 2k down and 1 point higher interest, and a much lower price with 2k down and 3 points higher interest rate (that I would have refinanced in a year after showing a track record on the property). He took asking price with little down and a low interest rate.

Would love to Ethan. Still on for 3/30 right?

Sorry about the multiple posts but my phone would NOT load more than one. So I am thinking about new Allure flooring throughout the entire units. Just seamless from kitchen, living and bedrooms. Wondering if I should take it into the bathroom too, or use a different flooring in the bath. Paint is not in bad shape but it is up first. Also looking at doing something with the kitchens. Any recommendations? Just counters or new cabinets too? I would love to install central air in all 4 units and get rid of the PTACs. Upstairs units will be easy, downstairs not so much. I think the best option for all 4 is going to be mini splits (luckily Im an AC guys and this will be the easy part). Units are separate meter for electric but not water. Roof is new.