All Forum Posts by: Axel Ragnarsson

@Constance Kang I took a local prelicensing course that is offered by a real estate brokerage in New Hampshire. I learned a lot about financing through BP actually, there are a couple podcasts that really dive into the use of private money. I don't know the episode numbers off hand but they are there!

@Ramon Jenkins Thanks man!

@Kedian Jimenez Thanks for the reply! Getting started early is such an advantage, it looks like your killing it right now. Be sure to come back when you snag that first rental!

@Account Closed I hope to be where you are when I'm 25!

@Jeremy S. I acquired a small amount of equity into the property by buying it slightly below market value, however the main way I'll be gaining equity is through simple loan paydown and appreciation. I also plan to make some improvements to the property that I anticipate will add some value. My plan right now is to reach an equity level where I can refinance and pull my original capital out.

Should have clarified in the OP, but the lease states that the tenant is responsible for their trash disposal. What they do right now is drive across the street to dump their trash when they need to, meaning it is no expense to me. Your right though, if I were to pick it up I would have to pay.

@Ryan Mayo Ryan, thank you for the reply and I appreciate the recognition. I've spent my fair share of time in Raymond over the years! Where in southern NH do you own property? 

@Mary D. Yes that is the property in the photo. Probably should have clarified in the original post! And yes, it is private water and sewer. I incorporated the cost to pump the sewer into the maintenance allocation since it is a biannual expense. 

@Eric Munson Thank you for the kind words Eric! Like you said, I hope to keep it rolling into the future.

@Mike Hurney Currently to hold on to it and build equity. I plan to refinance in 18 months to achieve a better monthly rate and improve my cash flow. I have found it difficult to find cash flowing properties in the southern New Hampshire market, so I see no reason to sell anytime soon. 

@Jesus Minier Thank you. I'll be sure too. Patience and persistence are key.

Been waiting to make the post for a long time..

To preface: I found BP two years ago (when I was 19). However, only recently have I felt qualified to make an account and offer my opinions to the other members on the site. During these two years, I listened to all of the podcasts, read the guides, bought RE books, and immersed myself in education. I saved money, searched for literally anyone that would finance me, and scoured the internet for deals. I also took a real estate pre-licensing course to help with my education and to give me the option to become an agent if I wanted to (which I have).

On March 4th, I closed on and became the owner of a triplex located in Chester, NH. I found the deal on craigslist (which was a FSBO) and put it under contract literally the day after the seller posted it. For those who are not familiar, Chester NH is a very small town, so small that this is one of three multi family properties in the entire town. It is currently filled with qualified tenants who intend to stay for a long time. Essentially, it is a dream property for someone with minimal landlord experience such as myself.

Closing price was $194,900 and I used a combination of conventional financing and private money to finance the deal. After talking to literally over twenty banks and credit unions, I found a small, local credit union willing to lend to me after I convinced them of the investment potential and the equity that I would have from buying it under market value. I received a 20% down/30 year/4% Fixed Rate loan, and I financed 15% of the DP through multiple family and friends who I am paying 6% to over a 30 year amortized period with a 5 year balloon. This will give me more than enough time to refi out of their notes and into a single mortgage at market value down the line, which I believe is around ~$235k. This all means I brought 5% of the PP to closing ($9,745). My projected monthly cash flows:

Gross Rents: $2,940 a month

• This is broken down into $1,050 from one 2BR unit, $995 from the other 2 BR unit, and $895 from the 1BR unit.

Expenses:

PI: $919

Taxes: $291

Insurance: $183 

Maintenance/CapEx Expense: $441 (I used 15% on monthly rents to be safe. There is some maintenance I expect to encounter in around 3-5 years as well).

Vacancy: $294 (Used 10% of Monthly Rents. I expect this number to be much lower given the desirability and competitive rental market the property is in.. Don't expect more than a few weeks of vacancy each year.)

PM: $294 (I will manage, just entered this expense as a safety net).

Heat: $210

Electric/Water/Trash: $0 (Tenants pay electric, property utilizes a private well, and the town dump is literally located across the street).

Net Monthly Cash Flow: $307

Net Monthly Cash Flow if I Don't Include PM Expense: $601

While this number may seem low to some of the members on BP, it is important to note that cash flow is harder to come by in New England than in many of the southern/midwestern states. All in all, I couldn't be happier that I finally own investment real estate! Have to give a huge shoutout to everyone on BP as well as Joshua Dorkin and Brandon Turner for producing an incredibly helpful podcast!

@Edgar Avila I'm familiar with the Manchester/Southern NH area and would love to help you out in any way I can. I own a MF in Chester, NH and got my license for the sole reason to help my investing efforts. Feel free to connect with me.

Welcome to BP. I took the real estate licensing course just to learn more about RE and it definitely helped me do so. If you wanted to become an agent, it is very doable in NH and I would definitely recommend giving it a thought. 

Hey Nicholas, I found biggerpockets when I was 19 and spend a long time educating myself so that I would act on a deal when I found one. I'm 21 now and own a tripled in Chester, NH. If you have the time and money, I would highly recommend taking a RE pre-licensing course since they are so easy in NH. Whether you want to be an agent or not, the knowledge you get from the course is more than worth the money. Reach out to me if you need anything!