All Forum Posts by: Carlos M.

@Todd Powell I left when my net rental income was twice as much as my living expenses. I only left my W2 May 2018. But I don’t regret it, Ana I wish I did it sooner !

55k gross per month, 14-16k net

I am at 61 units with a market value of 6 million.... I keep hearing “ your next step is a syndication “.... I have heard mixed reviews about syndications. Who here as experience with them?? And would you recommend it or not ??

@Adam Williams, As long As it’s a “loan” there are no real tax penalties for borrowing the money. If you “cash out” your 401k that’s a different story.... but go for it man. It’s like being your own hard money lender , and you keep the interest! We used 401k loans on two of our deals... we now have 61 units with a market value of about 6 million...

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $110,000

15 untis with one large garage.

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

This is located on a block that is currently transitioning.

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

I purchased another property off of the seller. He contacted me directly. This was an off market deal. Real Estate is all about relationships!

How did you finance this deal?

The seller contacted me.

Lessons learned? Challenges?

The larger the deal the easier it is to get financed.

Investment Info:

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

Purchase price: $660,000
Cash invested: $130,000

11 units with 14 garages.

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

It has a huge upside potential due to the condition of the apartments.

How did you finance this deal?

Standard commercial loan

How did you add value to the deal?

We renovated 2 apartments that were vacant for 10 years! We knocked out every wall, changed the entire floor plan. Ran new plumbing from the basement up, New electric including relocating the electric panels.

What was the outcome?

We doubled the value of this in 1 year! Its now worth 1,100,000! Our new business model is to find medium sized apartment complex (10-20 units) and Brrrrrr them !

Lessons learned? Challenges?

Cap rate and NOI are life changing numbers!

Investment Info:

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

Purchase price: $264,000
Cash invested: $30,000

This project burned down about 2 years before we bought it. So 4 of the units were completely remodeled and brought up to current codes.

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

Trying a different market

How did you finance this deal?

Traditional commercial loan and had the seller hold a 50,000 second mortgage.

Investment Info:

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

Purchase price: $500,000
Cash invested: $100,000

This is an 8 unit property. The rent were all 200 a month under the market. Most of the units were renovated prior to the purchase.

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

It was our largest deal at the time, and the rents being so low.

How did you finance this deal?

We used a typical commercial loan with 10,000 seller help in closing cost.

How did you add value to the deal?

Renovated the remaining apartments and raised the rents to market rates.

What was the outcome?

We increased the value of this property from 500,000 to 800,000!

Lessons learned? Challenges?

We learned how to deal with bed bugs on this project.

Investment Info:

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

Purchase price: $301,000
Cash invested: $30,000

This property changed our investing model. At first we looked for properties that needed little to no work. We Purchased this one, renovated it and refinanced it. WE only stuck about 4-5 k per unit into it. 3 years later we did a cash our refinance. It appraised at 585,000! We took the cash our and purchased another building. This is a 6 unit.

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

It was a little bit bigger and we saw the upside potential.

How did you finance this deal?

We had the owner hold a 10% second note until we refinanced it.

How did you add value to the deal?

Refinishes all the hardwood floors, painted, updated the kitchens.

Lessons learned? Challenges?

We learned all about the power of increasing the NOI on this project.

Investment Info:

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

Purchase price: $267,500
Cash invested: $53,500

This is an old 2 room school house that was converted to 4 units.

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

The conversion was done very nice.

How did you finance this deal?

Traditional 30 year fixed residential note.