All Forum Posts by: Brandon Dean

This is the forum for Columbus, Georgia...Here is the Columbus Ohio Forum https://www.biggerpockets.com/...

@Luke Crawford I recently went through this when obtaining my RE license. My investigation took about 3 days, but it took 2 weeks for the clearance letter to arrive in the mail. I called the GREC and spoke with someone, and they let me know when a response was mailed to me. I was in a similar boat as you, traffic violations from 7-10 years ago. No problem in getting 'approved', just have to wait on the snail mail

@Nick Kelly it is structured as a 50/50 partnership. I partnered with my dad, he provided the capital for the down payment and is a 'silent' partner. I covered the closing costs. I manage everything for the property, and currently doing the lawn while we build up our reserves. Once we have reserves built up, we will split the free cashflow. When we sell, we'll both get our initial investment back, and split profits 50/50. Right now, it is just in our names, but we will be transferring to LLC soon, as we plan to acquire more with this same partnership agreement.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

Purchase price: $160,000
Cash invested: $44,500

1st Property
Type: Duplex (each unit is 2x1.5)
Purchase: $160,000
Down Payment: $40,000
Conventional Loan
Closing Costs: $4,500
Monthly Rent: $1680
Operating Expenses: $915 (includes 20% reserves for Vacancy, Repairs and CapEx)
Mortgage: $540

Cash Flow: $225
Cash on Cash: 6%
Cap Rate: 5.75%

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

I have been searching for a small multifamily to invest in. My plan/goal is to househack my way to financial freedom.

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

My realtor overheard her teammate talking to his seller about a duplex, was able to get all the numbers needed to run the deal. Made an offer and had accepted that night.

How did you finance this deal?

25% down conventional loan. Partner provided down payment, and I covered closing costs

How did you add value to the deal?

Will be doing light rehab to one of the units once the tenant moves. The other unit was updated 2 years ago when seller bought it. Will raise rents with next tenants or lease renewal. Slightly below market rent, especially since water is included.

What was the outcome?

Planning to hold for 5-8 years before selling or refinancing. If selling, will split profits with partner. If refinancing, will 'buyout' partner to become sole owner.

Lessons learned? Challenges?

In a seller's market that is moving as fast as Columbus, it was tougher to negotiate after the property inspection. Owner did not want to make many repairs because he knew there were 2 other offers waiting.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Columbus.

Purchase price: $160,000
Cash invested: $44,500

1st Property
Type: Duplex (each unit is 2x1.5)
Purchase: $160,000
Down Payment: $40,000
Conventional Loan
Closing Costs: $4,500
Monthly Rent: $1680
Operating Expenses: $915 (includes 20% reserves for Vacancy, Repairs and CapEx)
Mortgage: $540

Cash Flow: $225
Cash on Cash: 6%
Cap Rate: 5.75%

Inherited tenants for both sides, and kept property management company for time being. Will assume control of property management as tenants move out. Leases end in July and December. Solid base hit to get started on the my investment journey

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

I have been searching for a small multifamily to invest in. My plan/goal is to househack my way to financial freedom.

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

My realtor overheard her teammate talking to his seller about a duplex, was able to get all the numbers needed to run the deal. Made an offer and had accepted that night.

How did you finance this deal?

25% down conventional loan. Partner provided down payment, and I covered closing costs

How did you add value to the deal?

Will be doing light rehab to one of the units once the tenant moves. The other unit was updated 2 years ago when seller bought it. Will raise rents with next tenants or lease renewal. Slightly below market rent, especially since water is included.

What was the outcome?

Planning to hold for 5-8 years before selling or refinancing. If selling, will split profits with partner. If refinancing, will 'buyout' partner to become sole owner.

Lessons learned? Challenges?

In a seller's market that is moving as fast as Columbus, it was tougher to negotiate after the property inspection. Owner did not want to make many repairs because he knew there were 2 other offers waiting.

Alright, so it could be possible if I were to use this as a House Hack? Wrong terms, it's private money, not a hard money lender. It's a family member willing to lend up to a certain amount.

Trying to get some creative financing for a potential property purchase. Will use this property as a BRRR or Flip. I have a hard money lender, but can only get enough to cover either the purchase or the rehab. Is it possible to purchase the house cash, and get a HELOC on it, that would cover the Rehab Costs?

Details: "Triplex" 3/1 and two 1/1

Purchase Price: 60K

Rehab: 40-50k

ARV: 150-165K

Est. Rent: 1700