All Forum Posts by: Mike Terry

may I suggest that you start understanding the valuation of multifamily properties and start vetting syndicators.  Most want 50k to get started.  You would still have 20k, possibly a downpayment on another rental.  Best of Luck.

Contact the family member who is leading the effort to put the house on the market and enquire about buying it.  Have your ducks in a row about knowing the homes value, how your are going to pay for it and your plan to make it a profitable rental.  Best of luck.  The worst thing that can happen is they can reject your request and you can't come to terms.  You will have learned a lot in the process.  Best of luck

Well said@Joe Villeneuve

I regret the deals I've passed on in my years of investing than I have any of the less profitable deals that I have purchased.  Moral of the story jump in, build your knowledge as you go.  Real Estate is forgiving.  If you have time be agressive.  Happy New Year to everyone in the Bigger Pockets community.

Congratulations!!!  Looks like a great purchase!

Hi Daniel, I am new rental property investor here also.  I own two duplexes managed by a well established PM with a great reputation in the local rei circles.  I would suggest thoroughly vetting the PM again.  Review tenant screening prcedure with a view to uncover what went so horribly wrong this time.  Tenants like you had to deal with must have a history of problems, criminal, credit, eviction.  How the PM approaches the situation should be a determining factor.  Are they remorseful, apologetic and are they willing to answer all of your questions and provide support for vetting tenants.  If you get any pushback or resistance.  Find a new PM.

Investment Info:

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

Purchase price: $171,000
Cash invested: $75,000

My first buy and hold rental. I found a pair of duplexes being sold as a package and rolled in some cash from a recent sale to make these a good start on cash flow. Cash on Cash return is right at 10%

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

numbers worked, I liked the market and I had invest a lot of time on the market to be confident this would be a great deal over a 10 year hold period.

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

I found a realtor on Bigger Pockets who was an investor himslef and worked with investors. He was obviously tied into the market. We tried on a portfolio of three duplexes but couldn't come to terms after the inspections. He called me as soon as these came on the market and we made an offer sight unseen.

How did you finance this deal?

Commercial loan with a significant down payment from the sale of a vacation rental this summer. Relator recommended a couple of commercial lenders in his network. I chose a small local community bank. They allowed me to amortize the loan over 30 years, boosting cashflow. Approval and closing were very simple.

How did you add value to the deal?

I have not. the units are 3/3's and they hav toom to push rents( there are not many in the market) . One has not been renovated and needs it. That unit is under market rents. So there is room to improve NOI and cash flow.

What was the outcome?

So far so good

Lessons learned? Challenges?

I am investing at a distance. My first use of property management. I inhertited tenants. so far I am thrilled.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The key was a knowledgable and connected realtor.

Study your local neighborhood. Walk it, drive it, know every house.  I have flipped 4 properties within 1 mile of my house in a competitive market.  My competitive advantage is know my home market well and can jump on deals as soon as I see them.  You can only act safely with speed with a solid knowledge of your market.

@Grace Griffin send me your packet Grace.  

@Craig Dieterich DM me. I'd be interested in working with you on this deal.

Mike