All Forum Posts by: Cassidy Burns

Hey Chief Bob, 

All the numbers are in the above text!  This is a break even to slight cash flow proposition for me.  Simply because I ran out of time and couldn't identify another property.  It will be a great long term hold and an appreciation play in my portfolio .

Best,

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $505,600
Cash invested: $78,000

Long term buy and hold in West Ashely Charleston SC. I performed a 1031 exchange from a duplex that I performed a BRRRR on in 2017 and repositioned that money into a more stable, appreciating asset.
Purchase Price: $505,000
Appraised Value: $535,000
$30,000 in initial equity the day I signed on the dotted line.
$78,000 of 1031 exchange funds invested (15% down)
Mortgage: $2,845/month
Property will rent for $2,900-$3,295/month

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

1031 Exchange - Needed to find property quickly

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

Off market through a realtor

How did you finance this deal?

15% Down Investment Property Financing

How did you add value to the deal?

Bought Under Value- Storage of capital for the time being

What was the outcome?

This is a solid single deal.

Lessons learned? Challenges?

Don't sell a property until you 100% know what you are going to do with the 1031 exchange funds

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

Charlsi Kelly as the realtor out of Charleston, SC
Upen Patel as the lender out of Washington DC

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $505,600
Cash invested: $78,000

Long term buy and hold in West Ashely Charleston SC. I performed a 1031 exchange from a duplex that I performed a BRRRR on in 2017 and repositioned that money into a more stable, appreciating asset.
Purchase Price: $505,000
Appraised Value: $535,000
$30,000 in initial equity the day I signed on the dotted line.
$78,000 of 1031 exchange funds invested (15% down)
Mortgage: $2,845/month
Currently have a rent back with the owners for $2,000/month and will be moving out July 1st.
Property will rent for $2,900-$3,295/month.
Cash flow is $100-$300/month which isn't ideal, but this purchase was a rushed 1031 exchange. WE will set the funds in this property for the time being , in what I believe is a very high appreciating market. We will then 1031 exchange this again into a larger building.

Happy Investing!

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

1031 Exchange - Needed to find property quickly

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

Off market through a realtor

How did you finance this deal?

15% Down Investment Property Financing

How did you add value to the deal?

Bought Under Value- Storage of capital for the time being

What was the outcome?

This is a solid single deal.

Lessons learned? Challenges?

Don't sell a property until you 100% know what you are going to do with the 1031 exchange funds

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

Charlsi Kelly as the realtor out of Charleston, SC
Upen Patel as the lender out of Washington DC

Great buy! Congrats. 

Hi Joseph, reach out to @Michael H. Cook, he's an agent with BPG Residential and works primarily with Secondary Home Investors! 

Best of luck

@Kelly Goodman I did not actually.  I decided to buy a single family house in Charleston SC instead.  Like you I couldn't find anything that the financials really jumped off the paper at me for the risk. 

Hi @Gerrard Allam , broken record here. But the multifamily space is very tough to break into in Washington DC. You can still use FHA Financing to purchase a duplex with very generous loan amounts. The issue is finding break even properties when you move out when you leverage 96.5% , they are very hard to find.

The strategy I'm suggesting lately is buying a single family with an in law suite, for $700-$850,000 using 5% down primary residence financing and since its a part of your residence you can still register the basement as long as it has a separate entrance as a short term rental with no restrictions! The AirBnB will do well is particular locations ! 

Best of luck.

Investment Info:

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

Purchase price: $1,130,000
Cash invested: $245,000

Contributors:
Michael H. Cook

15 Unit Multifamily Building
-Value Add Opportunity
-14: 2 bed/ 1 bath units
-1: 3 bed/ 1 bath units
-Average Rents: $666/month per unit
-Projected Rents: $795/month
-Purchased at 6.9% CAP Rate
-Market currently trading at 5.75-6% CAP

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

We purchase small to mid size multifamily along the I81 Corridor . 15-150 units~

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

Broker Brought the deal to me off market

How did you finance this deal?

Bank Financing 80% LTV

How did you add value to the deal?

Average rents current $660/month. Projected Market Rents w/ no rehab: $795/month

What was the outcome?

6.9% CAP Rate purchase

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

Michael Cook w/ BPG Residential

Closed! 🏡 . 4th @bpgresidential closing this week! . This was a fun one because it was investors who were only number and return focused , which makes it easy when evaluating assets . They were 1031 exchanging from a beach house into a long term buy and hold rental in Washington DC 📍 . Let’s look at the numbers: -$1,573,000 purchase price -Fully Tenanted : $6,800/month Lower Level: $1,800/month Upper Level: $5,000/ month These are COVID rents and will be getting the building back to where it should be: Lower unit: $2,000/month Upper Unit: $5,500/month Total Rents: $7,500/month . This was an all cash purchase so the owners will only be responsible for Insurnace, taxes, and property management on a monthly basis . They have hired @bpgpropertymanagementdc to take over management day 1! . This is a great long term buy and hold in Capitol Hill . Congrats to our clients on creating generational wealth by using TIME IN the market . On to the next ✌️

@Austin Watts great that you are already thinking this way.  I've personally done this strategy 3x in Washington DC.  Buying as primary residence, converting to rental, repeat.  There are quite a few assets on the market right now that I'd suggest for this strategy.  

Best of luck!