All Forum Posts by: Adam Soyak

Investment Info:

Single-family residence buy & hold investment in Manhattan.

Purchase price: $147,500
Cash invested: $20,000

SFH that has a barn for additional rental income. Modernized the interior and converted heat from electric to gas.

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

Pole barn for added income potential and area is up and coming

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

MLS, offered a fair price

How did you finance this deal?

Bank financing into a BRRRR

How did you add value to the deal?

updated kitchen, added central air and gas heat. updated all plumbing in home.

What was the outcome?

Rented in 1 day off of FB

Lessons learned? Challenges?

Work on this one on the weekends and after my normal W2 job. I could have got it on the market a month sooner if I spent a little more money subcontracting some of the scope.

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

Agent, my wife :)

@Eric Johnson Thanks for the suggestion.  I will reach out to my attorney.  

@Daniel Dietz I am looking at both options depending on how the deal looks.  As long as the investor gets a return, I don't think I will be limited on which I choose at the time. 

Currently, I own some rentals, 2 SF homes, 1 two-flat, and an additional BRRRR closing next month. I have flipped 4 homes as well. These properties are all in my personal name, and will be under an umbrella policy very soon.

Friends and family are now reaching out wanting to invest witnessing the decent track record I have developed.  Amounts range from $10k-$30k each that they would be willing to invest into my future projects.  Most of my personal funds are now tied up in the rentals so using OPM is definitely attractive to keep this train moving.  

I am trying to figure out what kind of agreement to come up with that is fair for both parties.  I am open to suggestions, just not sure what is typical to start (ie interest, duration, terms, etc)  I also am not sure if I need to form some type of syndicate or other entity for this to work and be legal.  Is there any letter or promissory note that you have used in a similar situation?

Any advice would be greatly appreciated!

@Anna Sagatelova The numbers work for us to move forward.  It was a 1 page lease that was provided and based on our walkthru we feel that these existing tenants should be ok.  Plan is to own this property long term, the possible 6-month issues wont keep out us of this deal.  Thanks!

@Andrew B. It's not so much the $ amount on the lease, its that the current leases are extremely vague and dont protect me as the new landlord.  That's my current issue.

We are inheriting tenants in a two flat set to close on July 3rd.  We were originally told by listing agent that leases were ending at the end of June and we would inherit tenants on a month to month contract.  

Upon Attorney review we requested a copy of the current leases to see what we, as new landlords, are inheriting.  We learned that the tenants actually just signed a 1 year extension on June 11th starting on July 1st, 2020.  This lease is less than a 1 page word doc checklist.  I am trying to figure out if this deal is really worth the effort.  

We did send over our lease that we would like the tenants to sign, however seller rejected, and told us to do what ever we want after closing.

For reference the house is 9.2% COC and $370/month cash flow.

Any advice or suggestions are greatly appreciated

Thank you in advance!

Try this one!  Thanks!

 Rental Analysis

@Jaysen Medhurst clink link in original post. Has my analysis on property. Was originally posting to see if it was an acceptable deal.

@Mark Ainley- Yes sir! I am able to lock in a rate of 3.75% with a couple pts, so my COC goes up to 10% and I am comfortable with that.

Two Flat Analysis-Click Here

I am typically a BRRRR investor for SFH, but want to get into Multifamily. I will be inheriting tenants which are on a month to month lease.

No repairs are necessary, but his house was built in 1900 with limestone foundation.  Just curious on people's thoughts for this investment.  Thank you in advance!