All Forum Posts by: Brandon Beatty

Welcome! I started at 21. I bought 1 duplex, lived in one side, rented out the other. I'm 25 now, have 2 duplexes, 2 SFRs, and a 12 unit under contract. I didn't buy any rentals for a 2 year period and am now regretting it. Starting young has its challenges and advantages! Land lording at 21 is odd in itself, but can be done. I recommend talking to a lender and learning exactly what they need and look for. Once I learned that, I tried to mirror it

Thanks for the input! Have you ever passed the cost without sub metering the utilities?

Following this- great post! Do you market specifically to sub 2 sellers? If not, what circumstance makes sub 2 more appealing than a cash offer? How would your price differ on a cash offer to a subject 2 offer?

SFRs below the 1% rule are tough to cash flow long term. Have you looked into small multi family 2-4 unit?

I am interested as well. What do most of these softwares cost? I've seen some that allow banking info and online payments. Do they charge any type of transaction fees?

It is hard to answer this question with the information given. When selling to someone interested in flipping the property - most people also find fair prices based on % of ARV. Some markets people pay 60% and some pay 80%. The complex and expensive rehab will obviously play a role in this value

Hey everyone! I have a 12 unit value add deal under contract. This is my first step up to real multi family. I currently have duplexes and single family rentals. About the deal: 725K purchase price 108K gross rent 6% cap C class building Currently the owner is out of state and country most of the time. The rent is under market, the owner pays for utilities, and a hefty management fee. I plan to either sub meter all utilities individually or just have the tenants start paying. I will also be managing the property myself to save the management fee and run the property more efficiently. With a slight increase in rent, tenants paying utilities, and me managing, it will be a 10% cap property in no time. I currently have a 75% LTV option given by a few different local lenders. The property is one of the only "C class" properties left in the area. It is located is a rapidly growing suburb of north dallas that was once a small county community when the property was built. QUESTIONS: 1. The property currently has window unit A/Cs. On a property this size (12 units), what is the typical cost to add Central heat and air to the building? I believe this will greatly increase curb appeal, tenant experience, and overall value of the property. 2. In textbook value add properties- what can I expect as far as a refinance in the future? I have the option to finance 50-75K of rehab money into the loan to start. I hope after 1-2 years to refinance the loan to pull out some of my initial investment. 3. Those who have initiated tenant paying their own utilities: what works best as far a time frame and rolling out this process? I have Construction experience as I own a construction company that does roofing, remodeling, and I do some flips. I have a few years of management experience and feel confident I can easily add this property to my portfolio. Thanks in advance for any input!

This is very interesting! I look forward to reading about your deals and learning more