All Forum Posts by: Bryan Vukelich

Hi Ellen, I occasionally come across off-market properties that are in need of rehab.  What areas of O'ahu would you consider buying in?  And please also share the types of properties and amount of required rehab you prefer -  that would be very help and I'll see if I can send something your way.   

Thank you 

@ travis hill many thanks for the info and feedback.  Have you bought anywhere else in Idaho?  Curious - what attracted you to Idaho Falls?  Best of luck 

@Bryan Vukelich Hi Michael, happy to get your message.  Unfortunately the agent who represented us on the purchase of that property did something unethical and thus I don't recommend him.  But my brother, Brandon; has established a new relationship.  He recommends you contact Tim Burroughs with ReMax. (I tried to post his # and email but won't allow me to)

And can relate to your comment that there hasn't much of anything of interest on the Boise MLS for awhile. Feedback we've gotten from locals there is that the local smart money is currently on the sidelines. But with this virus, maybe some opportunities will arise. We still like the market but our property management company says there are rumors of potential new regulations that are pro-tenant.

You do any investing in W. Washington?    

@ Dan Spafford  Thanks for your message and for the info on Eastern Idaho.  We would like to buy something in Idaho Falls, but seems like we are late to the game - at least for now.  How is the property management going?  Are many tenants asking for deferrals or payment plans in that area?  

Investment Info:

Single-family residence buy & hold investment in Tacoma.

This is a single family home my brother and I initially were planning to wholesale but after we got it under contract, we decided it could make a decent rental.

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

Purchase price

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

Owner was selling it and negotiated price over several weeks via phone and email.

How did you finance this deal?

Initially hard money and then afterward secured long term financing with bank.

How did you add value to the deal?

Improved the landscaping, new roof and did a interior cosmetic remodel.

What was the outcome?

Working out well.

Lessons learned? Challenges?

Owner was a challenge to work with and since he wanted a quick close and we were happy with the purchase price, we opted not to scope the sewer line (despite homes of this age in the area after having lines collapse). Well about a month into owning it, the sewer line collapsed on us.

Investment Info:

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

Purchase price: $460,000
Cash invested: $60,000
Sale price: $650,000

This was a tri-plex I acquire when I moved back to Seattle. I lived in the top unit and rented out the other two units.

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

I was moving back to Seattle and wanted a multi family property were the tenants could pay all, or a majority of my mortgage.

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

I was a licensed agent in Washington and found it on the MLS.

How did you finance this deal?

Bank financing.

How did you add value to the deal?

Did some lite remodeling to the units, and improved the landscaping.

What was the outcome?

Was a nice return on my invest thought I sold too soon. Would have been a great investment if I held it a couple more years.

Lessons learned? Challenges?

Big challenge was the first floor unit developed a mold problem and also had strange odor. Tried several ways to remedy the mold as well as improve air quality. None were successful long term. Finally I was referred to a handy man that started doing exploratory work and amazingly found a a small crack in a drain line from the upper units that was locate between a bathroom and bedroom. Once this was repaired, problems went away.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $60,000
Cash invested: $10,000
Sale price: $1,550,000

First property I was part owner of. Located in beautiful and desirable Ballard - formerly quaint abut now trendy NW neighborhood of Seattle.

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

Located in very desirable neighborhood of Seattle.

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

Found my family friend.

How did you finance this deal?

Bank financing

What was the outcome?

Was a successful outcome - over the years Seattle grew as a city and Ballard become a "hot spot."

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $860,000
Cash invested: $400,000
Sale price: $1,125,000

This property was #1 of #2 that was part of an estate sale that an investor group, that my partner and I managed, acquired during the Great Recession. It had the same owner for many years and there was quite a bit of deferred maintenance. Positive note is that rents were below market.

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

Seems like a great buy and hold opportunity.

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

Local realtor brought it to my attention.

How did you finance this deal?

Financing was a huge problem. Initially we were approved by a bank with approximately 40% down. About 2 weeks prior to closing, lender stops returning my calls. I finally went to his office and learned our financing had been pulled. With a substantial earnest money at risk, I was able to work out 12 month seller financing, however seller increased purchase prices by $40K. Overall this investment worked out wellI, but would have been a sweetheart deal if we didn't have to pay the extra $40k.

How did you add value to the deal?

We remodeled a majority of the units, replaced all windows, replaced maybe 1/2 the sliding doors on deck, repaired and repainted siding and stairwell. hired a better property management company.

What was the outcome?

Worked out well for my investors and I.

Lessons learned? Challenges?

Be careful who you partner with - best not to partner with a person who cannot put "skin in the game" - no matter what skills or other value they say they can bring to the table.

Relearned the important lesson to be realistic about the scope and cost of improvements.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $860,000
Cash invested: $400,000
Sale price: $1,125,000

This property was #1 of #2 that was part of an estate sale that an investor group, that my partner and I managed, acquired during the Great Recession. It had the same owner for many years and there was quite a bit of deferred maintenance. Positive note is that rents were below market.

Financing was a huge problem. Initially we were approved by a bank with approximately a 40% down payment. About 2 weeks prior to closing, lender stops returning my phone calls. I finally went to his office and learned that our financing had been pulled. With a substantial earnest money at risk, I was able to work out 12 month seller financing, however the seller increased purchase prices by $40K. Overall this investment worked out well for my investors and I, but would have been a sweetheart deal if we didn't have to pay the extra $40k.

Work we on property was remodel majority of the units, replaced all windows, replaced maybe 1/2 the sliding doors on deck, repaired and repainted siding and stairwell.

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

Seems like a great buy and hold opportunity.

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

Local realtor brought it to my attention.

How did you finance this deal?

Seller financing for first year then a local community bank.

How did you add value to the deal?

Did a lot of improvements to the property and hired a better property management company.

What was the outcome?

Worked out well for my investors and I.

Lessons learned? Challenges?

Be careful who you partner with - best not to partner with a person who cannot put "skin in the game" - no matter what skills or other value they say they can bring to the table.

Relearned the important lesson to be realistic about the scope and cost of improvements.

Hi Daniel, my brother and I are looking for more deals in Boise (as well as other parts of Idaho) but we are pretty risk averse right now and I believe it one is patient, there will be better opportunities than now.  For the current property we have there, average rent was around $770 when we acquired it with a cap rate near 5%.  We've since been able to increase rents by nearly 40%.  And appealing thing of the property was it's turnkey condition, so we just did a few landscaping and common area improvements.  Overall we have been pleased with the management company - they've especially proven their value during this virus.  

How is your local market doing at this time? Are you seeing any interesting opportunities at this time?  

Does this answer all of your questions?  Happy to answer any other questions you have.