All Forum Posts by: Christopher Dumelle

If those are real cash flow numbers, I would probably buy them both. Obviously there would be many factors that go into that, but those are pretty good returns. I imagine those have to be cash purchases?

Welcome to BP Kelly you have come to the right place to make all your dreams a reality. This site will be a extremely helpful guide and mentor as you continue your journey into RE investing. I highly recommend the Ultimate Beginners Guide to anyone new http://www.biggerpockets.com/real-estate-investing, I also love the Podcast I've listened to them all and look forward to Thursday's for the new ones. Good luck in 2014

Welcome @Brandon Modisette You have definitely stumbled into the right place. Everyone on this site is extremely helpful don't be shy to ask questions and get involved in other conversations. Good luck on all you future investing.

@Christopher Schmidt Those numbers look pretty great especially for having no cash in. I also like the idea of breaking it down to a per unit ROI maybe something I will have to consider for 2014. Keep up the good work.

I know this was probably not why you stated this post, but I am interested as @Eric M. is how were those deals structured, and also found.

I agree with @Patrick L. and @Brian Mathews do not spend any more money on courses at the moment. I am not saying the cant be helpful in some situations, but if you have already bought several, use those, and Biggerpockets. Save the money you were going to spend on more courses for marketing and other expenses related starting you RE business. I would recommend checking out the BP Ultimate Beginners Guide to real estate investing. http://www.biggerpockets.com/real-estate-investing its completely free and packed with great information on all aspects of real estate.

I agree Colleen F. The pain is from the Reno costs for sure. The other issue is the inherited tenant every month the rent is late or not paid with promised of payment later. I want to not renew her lease, it's month to month we created and she signed. The only issue is as I stated I did not properly prepare so I don't have reserves to handle if something big happens, there is always credit, but that's a slippery slope. Also she has been there about 5 years or so and I know an eviction will be a mess with her, a needed one though. with her not being there I'd probably get by ok, but it would be much easier if I can get the efficiency and or the 1BR done first to get some more income. It's a bit of a balancing act at the moment. You are probably right about some finishes and stuff. I maybe able to save money there, but the previous owner had the property for 4 years and neglected it 99% of that time, so basically everything needs work. the 2 empty units need appliances. They had them they did not work when u tested them. My main question is does anyone have suggestions on possibly some financing possibilities, to speed up the Reno process and get it producing to make a refinance easier. Or does it sound like its going to be a bit of a long grinding process. It's ok either way, I'm just curious if anyone has ideas/suggestions.

Good evening BP,

This is my first rental property I acquired over the summer. I should likely not have bought it, I knew it going in, but wanted to get started. It was all "rented" when I bought it. I failed on receiving appropriate documentation of all leases ect, before purchasing. Well there were none in place and I knew that but went ahead anyways. I planned on and way underestimated the cost of renovating all units in the property. Here is the current situation.

I have a 4 Unit rental property with a garage. It is located at 604 4th Ave in Sterling IL. I bought the property on a Lease option. I paid $74,900 for the property. I put down $3600 so the balance is around $71000. I had underestimated what it was going to cost to rehab this property to rent ready conditions. The property has 1 3BR unit, 1 2BR unit, a 1BR unit, an efficiency and a garage. Right now the 3BR unit is freshly renovated and renting for $725 a month, the 2BR has an PITA inherited tenant in it and needs around 10K-15K in renovations, but is rented for $530. Once renovated and a properly screened tenant is placed, it will rent for $600-$650. I have a contractor working on the efficiency right now, when that is complete it should rent for around $425. The garage is rented for $65 a month

That is a concise background on the property. I would need around $20,000-$25,000 to get the 1BR and 2BR completely renovated and have money in reserves for the property. (I had some money in reserves in the beginning, that quickly went to renovations) This would make the property fully preforming and after all expenses (Mortgage, taxes, insurance, vacancy, maintenance, utilities, property management, repairs) it will cash flow right around $300 per month. http://www.biggerpockets.com/buy_and_hold_results/3021

Right now the property is breaking even as far as its current expenses not having to come out of my pocket.

I have learned much through this process and will be much more prepared next time I make a purchase. I do want and need to get this one going more smoothly before expanding any further though.

Any help on possible solutions to this problem would be greatly appreciated.

Also if there is a more appropriate place for this thread please let me know.

Thanks in advance for all the wisdom,

Chirs Du Melle

Mark Ferguson you are exactly right. I love that type of thinking.

Brandon Godboldt welcome to Bp I'm also in northern il, in belvidere. I'm always looking to connect with other investors in the area. 3 properties in 5 years sounds very doable, just stay persistent.

@Seth B.

That said I would highly recommend "starting out" in your own backyard. It makes the learning process much easier when the property is close by. My first rental is about an hour and a half away and it has posed a lot of unnecessary challenges. @Gerard DuMelle can attest to that as well.