All Forum Posts by: Allyssa McCleery

I agree that you should get other potential partners lined up. If you come across a great deal you will want to have a couple different options to offer it to. This will also create a sense of urgency with your lawyer friend as he will know you don't need to wait around for him to commit. Perhaps you will close on another deal with a different partner first and then that will open up the door more. 

You are missing some pieces of information. What is the cap rate for this area? $350 seems pretty low, what type of neighborhood is this? Being that all the units are studios you will likely have a significantly higher turnover rate than if the units were 1 bedrooms or 2 bedrooms so that is important to keep in mind in your analysis. If it appears to have little deferred maintenance, what specifically does it need?

I think it would be helpful to find a successful syndicator in your area who you can hire or share part of the profit with in exchange for knowledge of the process. There is tons of information to learn but this would be a good way to get hands on experience. 

Are you looking to sell this? Or just updating your newest acquisition? 

I agree with @Sam Newell that you shouldn't try to speculate and buy when there is a dip. You could be waiting around for years for that opportunity and missing the chance to let your renters build equity for you. 

It sounds like if there is a housing shortage in Utah you are in a good position owning property there. Is there a way for you to hold on to this property and buy one in Vegas as well? Maybe you can find a creative way to finance once you get to town and just rent a place in the meantime. 

@Michael Ealy that is so impressive! How long did it take you to scale up to that number of units and what would you say is the proudest moment/strategies of you investing career?

I agree with everyone that this is not a good idea with the type of property you are pursuing. You might be able to make it work if you were doing a flip in which you had a GREAT deal and a lot of wiggle room to make mistakes. You don't want to get too aggressive in the beginning and knock yourself out of the game before you have been able to see wealth built for yourself.

You can do a cash-out refinance to achieve this. Most lenders will only go up 75% LTV but I have heard of some lenders going up to 80%. With converting a home into a tri-fourplex, you will likely face difficulties with the zoning. Check on the property appraisers website to see how this property is zoned. You can apply for a variance but it may not be worth the effort. You probably would be better off finding an existing 4plex in need of rehab.

Does anyone have experience renting a property out through Youth Co-Op? I received a call about placing a tenant through this program and would like to know what other's have experienced with this organization. It is apparently a program in which immigrants are vetted and given employment upon their arrival. Their offer is to pay the deposit and first 3 months rent for the tenant while they work to save up some money and take the reins from there. It sounds like a good program and will enable me to fill other vacancies in the future. 

I agree with @Robert Ellis, it is difficult to find cashflowing properties in these neighborhoods because of the property values vs market rent. If you can find a fixer-upper though you stand to make some money flipping. There are also lots of surburbs that may be worth looking into such as Worthington where there are good schools and you may be able to find cashflowing properties.