All Forum Posts by: Cameron Ysidron

Looking for any suggestions for HML in the Baton Rouge area. Specifically, I'd like to find lenders who have loaned on good deals for ~75% of ARV. Thanks for your suggestions!

Good luck on the deal! That would be an awesome opportunity.

Hi everyone,

I'm looking to connect with investors who focus on condos in the Baton Rouge area. For the past few months, I intended on purchasing the condo that I currently rent when my lease ends in June, but another opportunity has come up that fits my needs better. I have already mentioned the topic of selling to my landlord, and she is definitely interested. This is a 1/1 approximately 700 sq.ft. close to Town Center, in rent-able condition, but could use some rehab. Rents are currently $750/mo. Feel free to contact me if you're interested in this deal or want some more details.

Congrats on your first deal! What do your margins look like on this deal? Does it cash-flow well?

So I've had an interesting turn of events recently. I'm currently renting a small condo, and my lease ends in June. I planned on buying this condo from my landlord to renovate and hold as a rental. Recently, I got an off-market lead on a 2 unit property in an amazing area of town by calling the number listed on the for rent sign on the property. The owner said they would sell it for 200k, which seems to be a really good deal even just based on the price of a vacant lot in the area. I've formed a pretty good relationship so far with the owner, as he is a big time commercial investor and also started out at a young age. I explained my situation to him about being in a lease and not really able to buy until the lease ends, and he seemed to understand but encourage me to go ahead and try to get pre-qualified for a loan - which I'm doing. 

Here's where I'm looking for some advice: I don't want this guy to lose out on rental income by leaving this property vacant until June, but I also want to be able to secure the property by then. Depending on whether I can get qualified for a loan, what does the next step look like? Should I go ahead and get it under contract with him and do my inspection?

Thanks for any insight!

I came across a pre-market 104 unit complex this morning which looks to be a solid value-add opportunity. I'm looking to connect with local multi family investors in the Huntsville area to talk about this deal. 

Looking forward to chatting!

@Tchaka Owen - That's a really good point. I think that is one thing that I'm trying to make sure of - that I'm honest with my numbers. Appreciate the advice.

 Thanks for the response Tchaka, got a good laugh out of your first comment. I will say that I came to that number using the rent numbers that I think it would rent in its' current state, not after it is rehabbed. 

So my takeaway from what you said is basically just do more due diligence and if it looks like it would still cashflow then go for it? Pretty intuitive, I guess.

There is a four plex that came on the market in a great neighborhood in my area, which seems to be pretty rare in today's market. I'm really interested in taking this property on as my first deal, but I'm really struggling with defining my terms for how I need the property to perform financially. I always hear that you should have very well defined terms on what deals you will buy as an investor, but how can I define these in the first place?

For a little more background on the deal, it is listed for 350k which is high compared to properties in the area and of similar condition that were recently sold. I think that I can get it about 10% under market value for around 275k. I estimate 7.5k/unit in repair costs, and an ARV of ~350k. With all expenses accounted for with what I think are typically high percentages (vacancies 6%, PM 10%, maintenance and repairs 10%, cap.ex 8%, tax ~10%, insurance ~ 5%), and a pre-rehab gross rent value of $3k/month, I estimate that I could get $150/month in cashflow.

If all of the above proves true after doing more due diligence, I would need to find a way to come up with 90-100k cash to close and complete the repairs. 

I'm open to any advice on this property or my methodology that I've used, and I appreciate anyone who takes the time to respond.

Best

~Cameron

I believe title companies usually have lawyers on staff to handle closings.