All Forum Posts by: Almond Matthew

Jim Adrian I believe in ventilation. I also put 6 mil plastic on the ground as vapor barrier and also to keep clean should I ever need to go under there.

 Mike Wood both units are 2 bed 1 bath. Roughly 900 sqft. each. Those numbers were for both units. My subs were very reasonable and very professional. HVAC guy goes out of his way to save you money. Electrical guy charged $35.00 an hour but he hustled the whole time. 

Michael Enriquez I understand what you are saying but I don't expect any  major maintenance issues for at least 10 years. Vacancies I understand are an uncontrollable how ever, my tenants lease agreement states they are liable for the rent the remainder of their lease or until a suitable paying tenant is found. I do believe I have some long term tenants though. 

I guess what bothered me about his post was suggesting I have "significant negative cash flow" and that I should sell the property. 

I don't need the money that is left over each month so it will be left to accumulate in  a separate account should something arise.

Thanks for everyones input.

 @EJ Concepcion yes it has city water and and sewer.

Greg S. If you don't mind, enlighten me on your thinking. The rent is what the market here is currently bringing. I have tenants who have both signed a 1 years lease. Each month their rent is drafted out of their account and deposited into mine. After principal, interest, taxes, and insurance there is $385 left in my account each month. I know there can be unexpected expenses but remember this is a new build. Everything is new and under warranty. The thing that hurt me most was no comps on duplexes in the area. Had this been a SFR of the same dimensions and materials it would easily appraised for $160,000. So please explain why you think I should dump this property. The plan was for a long term hold.

Thanks for the compliments.

@Uriah D. I borrowed 81,000 for construction. I had close to 19,000 of my own money tied up in the land, clearing and grading, and closing cost on the construction loan and permanent financing. As my sweat equity goes I would estimate 30,000ish. I posted more pics and a more detailed post in the Development and New Construction Forum. 

Thanks for the compliments

Luka Milicevic I bought the land at about half its actual value. The seller just wanted to unload it quickly. The construction loan was interest only @4.5% for 12 months. I only paid interest on the money as i used it. I was originally told I would would be able to get a fixed rate mortgage but that didnt happen. I ended up with a 20 year 5/1 ARM @ 4.99%. Needless to say I wasn't happy but the construction loan was close to maturing and I needed to close quickly. I will be looking to refinance at a fixed rate with a local credit union in the next couple years.

@Eddie T.

It took me right at a year to complete once I broke ground. If you count the planning and financing I would say closer to 2 years. I teach carpentry at a local high school so all this was done over weekends and holidays. The next one I will probably just take care of masonry and framing and sub out the menial task.

As for the HVAC, Plumbing, and electrical I hired licensed guys that also do side work. I furnished materials for the plumber and electrician they provided labor.  HVAC guy sold me the equipment at cost as long as I paid him for it up front. He showed me his invoices for the equipment he didn't mark it up at  all. I dont have the exact numbers in front of me but these should be close.The numbers include both labor and materials.

HVAC -$6,000

Electrical - $5,000

Plumbing -$7,000

Thanks for the replies

https://drive.google.com/folderview?id=0B2whTRNk9knkVkx6d2dSa1MtS3c&usp=sharing

Here are the pic

Good afternoon all

 My name is Matt and I recently joined BP and I wanted to share with you my experience building my first rental property.

First a little about myself. I am 37 years old  with 20 years experience in mostly masonry but also some framing experience as well. I tackled every aspect of this project from footings to roof except for HVAC, plumbing, electrical, insulation, and sheetrock. It was quite a job to say the least but is now complete and I have some great renters in place.

I know that this strategy build and rent does not work for everyone but with my background and skills it makes sense for me. I like the idea of having a property that should not need any maintenance for several years and that it meets current building and energy codes. 

The numbers: 

Out of Pocket Cost - Land $10,000

                              Surveying $500

                              Clearing $3000

                              Closing Cost $5,000 (total for construction loan and permanent financing)

Construction Cost and Furnishings - $81,000 (money I borrowed)

PITI is $715 a month, rent is $1,100 both sides combined so I am cash flowing $385 per month.

I was disappointed in my appraisal. When I questioned the appraiser he said there was no comps on duplexes in the area since one hadn't  been sold in 12 years. He said they basically based the appraisal off its potential income. So I feel I took a hit on some of my sweat equity.

All in all it was a great experience. I think next project will be a SFR to rent.

Here are some pics of my Duplex. Thanks for looking

Good morning all. 

 I have been lurking here for some time and finally decided to post. My name is Matt and I live in Albemarle NC which is about an hour east of Charlotte. 

 I recently completed my first rental property, a duplex that I built new. The renters have been great so far. 

I would like to continue building new duplexes and SFR with possibly moving into apartment buildings in the future.

Here is a picture of my duplex. I completed this in May so the lawn will have to wait till fall. I will be doing a more indepth post with more pics in the Development and  New Construction Forum. 

Well that's it for now. It's good to be here and hope to work with some of you in the future.