All Forum Posts by: Jonathan Plant

Investment Info:

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

Purchase price: $275,000
Cash invested: $48,000

4 Plex built in 2010. Brick and vinyl siding exterior with a steel roof. Love it! Great tenants and cashflows medium.

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

The build criteria, location, and doubled my previous purchase.

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

Realtor.com. Not much negotiation on this one. Bought it for a few thousand less than asking price.

How did you finance this deal?

Local bank with a Commercial 15% down loan> love these! Non-Recourse!!!

How did you add value to the deal?

Made some minor repairs and made all rents equal to bedroom quantity.

What was the outcome?

Better Tenants! Happy Tenants! They see continual care on the property from my manager!

Lessons learned? Challenges?

Relying on the realtor and home inspector to be thorough. Realtor was not honest about the septic company he hired to test the system. Both systems did not function properly and cost me $ in about 2 months after purchase. Home Inspector did not find that one of the units operated in emergency heat mode instead of normal operation.

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

I would not recommend them.

@Jayden Hamilton depends on your situation. If the environment is risky, then probably not a good idea.

I have a 4-Plex to where we collect just cash from the tenants. We use this time to also change the A/C filter which allows us to complete a monthly interior inspection as well.

Thanks @Dmitriy Fomichenko

Investment Info:

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

Purchase price: $277,000

4-Plex on .75 acre lot in a recreational town. Built in 2010 by a local builder that had investing in mind. Great rental!

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

Buying into multi units and getting out of single family homes.

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

Located it on Realtor.com and jumped on it.

How did you finance this deal?

Local Bank.

How did you add value to the deal?

Increased lease terms and rents.

What was the outcome?

Increased cashflow.

Lessons learned? Challenges?

No property manager around. Had to utilize family. Kept stirring PM interest and so now lining up a professional PM locally.

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

RE agent to close deal.

@David Edwards, do you have a project update? I’m thinking of a similar project for the Fairbanks/North Pole area Alaska.

I’m curious of your phases. Have you had to adjust them to accommodate any unforeseen?

What of funding? Have you been able to fund all phases with same lenders? Any outside investors get involved? Crowdfunding?

Is the modular home general contractor responsible for the development of the land to include proper grading, utility runs, septic or sewer connection, and the driveway or road?

Good question Kameron!

I would like to refer you to some good reads:

1. The Richest Man in Babylon by George S.Clason

2. The Wealthy Gardner by John Soforic

Personally, I have a budget that allocates category percentages.

For a "Rainy Day Fund", I believe referring to an emergency fund.
I calculated the emergency fund needs to be as follows: added my monthly average utilities from the last 3 months (have to start somewhere), mortgage, and car loan. Took that # then multiplied that by 6 (months needed). Took that number and rounded it up to the next $1,000. That was my goal to reach. Once we reached that goal, no more went into it. I then started to put the extra cash onto our car loan.

For the real estate savings account, I take 10% of every dollar (just like tithe/giving category) and put it in a separate savings account. No more than that until my car loan (only debt) is fully paid off. The only way I put more in is when I get paid a bonus from my job. I have enough for investing now because of this. I would add more to the car loan but there is a nice fee if paid off early. The cost exceeds interest paid so yes, I'm sticking it out until it expires.

@Stewart Beal That is awesome!

Has anyone invested in Italy? If so, how does it compare to buying in the US?

I have some co-workers that are discussing buying in Italy. I'm in the process of finding out how to acquire and Airbnb a single family home.

I’m inquiring of those that have experience in this process. What are the top 4 things that come to mind when structuring for a 4-plex residential deal?

- top 4 roles you assign.

- key players in deal.

- top 4 questions to ask yourself, syndicate partners, agent, lawyer.

@Stacie Pearman

Are you in the position to rent it out? Would your HOA allow that? BPInsights says a 4 bed 3 bath rents for an average of $1,487 month and yours is new. Would this cover your costs? If so, possibly rent at new location until your in a position to buy again.