All Forum Posts by: Callaway Pate

Hey BP Fam!

I'm a realtor currently trying to gain contacts and two key ones I'm lacking right now are an inspector and a handyman. If any of you in the DMV have someone that you wouldn't mind referring me to I would really appreciate it!

Best,

Callaway

Hey BP family! I was wondering if anyone has experience with a rental property that has a solar energy system (with battery storage and net metering). I'm curious as to if it's feasible to offset the electricity portion of NOI and receive a boost in property value that is greater than the cost of the solar system installation. If anyone has an opinion on this concept I'd be glad to hear it.

-Callaway

I present to you all 2810 5th Street, SE, Washington, DC in the Congress Heights neighborhood.

I am looking for a buyer on this 16-unit off market property. The property rent roll for each unit is currently below market rents and the units are in need of rehab.

Purchase price: $2.4168 million

Current Rent Rolls:

1BD/1Ba: 5 units --> average rent = $1200

2BD/1BA: 7 units --> average rent = $1095

3BD/1BA: 4 units --> average rent = $2000

Tenant association seeking settlement with prospective buyer in exchange for TOPA rights needed secure contract.

If you have any interest in learning about the property please feel free to reach out to Callaway Pate (301-535-0492) for more information on this multifamily opportunity in developing SE DC. 

Hey BP family! I plan to buy and hold property in SE and NE D.C. These areas happen to be opportunity zones and I wanted to see if anyone knows whether 1-4 unit properties can be counted as investment properties if secured on a conventional loan and therefore eligible for abatement of capital gains tax. I'd appreciate the insight!

-Callaway

This is a good question, I read in an article that there are 20+ medical construction projects underway. It looks like the growth in urgent care centers is correlated to the construction of major hospitals in the DMV. Don't know much about the financials but based on others' replies it looks pretty hit or miss based on your ability to source the medical professionals. 

https://www.bizjournals.com/wa...

Hey @Jeulissa Gonzales, a common problem I noticed is that people don't properly screen their tenants and choose the first person that shows interest in renting. I'm of the opinion that when you're house hacking, a good thing you can do is try to find tenants with a background you understand well. For example, if you work at a tech startup, it may be a good idea to target younger people that work at your same startup or a similar company. That way through your commonalities you better understand their financial situation and lifestyle needs. If you plan to house hack for a couple of properties this may get become challenging after a while but for starting out I'd recommend it.

Best of luck!

Hey @Troy Nelson, congrats on getting active in BP and starting to ramp up your business! I'd love to connect with you and learn about some of your wholesales. 

Best of luck!

Hey @Tabish Masood, I don't see anything wrong with your financing structure. It seems like it comes down to the actual property. If your investor is satisfied with their ROI and you're sure of your numbers then it sounds like a decent deal. The only detail that's somewhat alarming is the maintenance cost but if you're confident that you can screen for tenants that you're sure won't trash the place then it could go well. I'm sure you'll make the right call.

Best of luck!

Hey @Kiran Nathani, it's great you've decided on starting. I'm assuming you're in the DC-Metro area. Finding distressed properties is tough even for experienced investors in the area but relatively simple. You have to put yourself out there and start calling owners of properties you think are distressed. You can do this by getting call lists from sites such as PropStream or driving for dollars, writing down the addresses, and looking up the owners in the public database. It may be worth your time to connect with local real estate agents and ask if they can teach you how to search in exchange for generating leads for them. Generating good deal flow is arguably the hardest part of starting in real estate but if you're consistent you'll always have something in the pipeline.

Best of luck!

Because so much equity can be captured from value adds in DC, as long as the property doesn't have negative cashflow its not a deal breaker. Honestly, if it's cashflow someone is looking for I think it's better to just go up to Baltimore county (even though tenants out there can be a headache). High CoC properties in the DMV seem few and far between if you're doing traditional LTR. If anyone is making it work though I'd love to learn about it!