All Forum Posts by: Corey Griffo

Hey Jacob! First off, great job on the house hack! We are located in Lexington, and have just recently found ourselves in the same situation and have started handing over some of our units to managers as well. What type of help are you looking for? I'd be happy to help provide a couple of the connections that we use if you would like.

Sorry Chris! I didn't realize how long ago this post was from!

Hey Chris! 

I am both an investor and Realtor in Lexington, KY and would be happy to chat with your friend to provide any direction, information, contacts that I can. Please feel free to have him reach out if he would like. 

Corey 

I chose not to do an FHA loan because the rate was better for conventional and I wanted to avoid paying PMI. :)

Investment Info:

Single-family residence fix & flip investment in Lexington.

Purchase price: $25,000

A Current Fix and Flip in the NOLI District of Lexington, KY that we have on-going. We estimate needing to put around $60-70K into the renovation of the property. We would like to perform the BRRRR Strategy on the this and hold it as a rental.

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

The potential for the area is increasing, and the cost of entry was very low. It had sat on the Market for months vacant in bad condition. Once a fixed up property sold down the street for $140K. It helped to understand its ARV better.

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

We threw out a low ball offer at $15,000 and agreed to a price of $25,000.

How did you finance this deal?

Cash from a HELOC

How did you add value to the deal?

We are currently in the process of Demo'ing the property to the studs. We will be adding all new everything.... electric, plumbing, insulation, windows, HVAC, kitchen and bathrooms, finishings, siding, etc.

What was the outcome?

Estimated
Equity Gained - $40,000
ROI - Infinite due to refinancing all our money back out. Expected monthly rent is $1,000.

Investment Info:

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

Purchase price: $213,500
Cash invested: $42,700

This 1900's Duplex was the very first property I purchased when coming back into the area. It is located in what was a transitioning neighborhood that was seeing quite a bit of value climb and investment since the West Sixth Brewery moved in. At the time of purchase, the neighborhood had turned about 40%. The plan was to house hack it, living in one side while personally fixing up the other to rent out. It was in need of quite the facelift both on the interior and exterior.

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

Just moving back to the area, I was excited to get back into real estate investing.

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

This property was found on the MLS, and the offer was based on the properties potential and required renovations.

How did you finance this deal?

Purchasing it for $234,000 on a owner occupant loan (80% LTV) the 30 Year Ammortization I would eventually learn would really make this properties cashflow special. I immediately took out a HELOC from a local Credit Union up to 95% LTV to assist me with all of the renovation costs which turned out to be around $45K.

How did you add value to the deal?

Renovation of both Units (Kitchens, Bathrooms, Windows, etc) and a facelift to the exterior of the property.

What was the outcome?

An awesome cash flowing property in a appreciating and high demand area.

ARV on this property was appraised at $330,000 and rents are $1100/unit.

Equity gained - $71,500
ROI - 22.4%

Lessons learned? Challenges?

This was the property that helped me learn to outsource work. I ran myself ragged renovating the first unit by myself as I worked full time in another city at the same time. Once the first one was completed, I vowed never to put myself through that again and hired a contractor I found through another investor down the street. It was the single best decision I have made in my investing career. Their work was better and because they no longer had me as the bottle neck it was done much faster.

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

Real Estate Agent - Dave Alford (REMAX Elite)
Loan Officer - Lori Hawkins (Guardian Savings Bank)

Investment Info:

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

Purchase price: $213,500
Cash invested: $42,700

This Duplex was the very first property I purchased when coming back into the area. It is located in what was a transitioning neighborhood that was seeing quite a bit of value climb since the West Sixth Brewery moved in a few years before spurring investment of the beautiful but rough neighborhoods around it. At the time of purchase, the neighborhood had turned about 40%. The plan was to house hack it, living in one side while personally fixing up the other to rent out. It was in need of quite the facelift both on the interior and exterior. Purchasing it for $234,000 on a owner occupant loan (80% LTV) the 30 Year Ammortization I would eventually learn would really make this properties cashflow special. I immediately took out a HELOC from a local Credit Union up to 95% LTV to assist me with all of the renovation costs which turned out to be around $45K.

This was the property that helped me learn to outsource work. I ran myself ragged renovating the first unit by myself as I worked full time in another city at the same time. Once the first one was completed, I vowed never to put myself through that again and hired a contractor I found through another investor down the street. It was the single best decision I have made in my investing career. Their work was better and because they no longer had me as the bottle neck it was done faster essentially allowing me to get a renter in months sooner than I would have otherwise offsetting the costs of hiring the contractors.

ARV on this property was appraised at $330,000 and rents are $1100/unit.

Equity gained - $71,500
ROI - 22.4%

Hey Curt! 

We actually just found ourselves in a situation similar to what you mention in your post above. We have the opportunity ( as the investor) to buy a house and lease it back to the seller. Did you end up adding this technique to your tool box? If so, are there any tips you can give on different buying techniques for it?

Thanks In advance!

Corey

Hey! 

I'm here in Lexington, KY and just got a hit on some of my marketing. The Seller who I plan to meet with later today said that she is in bad health, has no Heirs to leave her house to, and would rather sell the house and make use out of the money than the asset. The only catch is that she wants to continue living in the home as a life tenant. It sounds like a great chance to get into this piece of property, and she seems motivated. 

What buying techniques should I be thinking of when I go to further discuss her situation? I plan to use the 70% rule as my guide but since I won't be able to BRRR it right away should I add extra in for risk? Or does the fact that I have a built in tenant make it more valuable.

Once I speak with her more and get a better idea of what she would like to do with the money, I will know a little more which direction I should go with the buy but I wanted to toss this out here in case anyone has encountered this before and has any tips! 

Thanks so much all!

Corey

Hey Guys! Thanks so much for all the support! To try to answer a few of the questions from above:

@Terrell Murray This technically is a fully performing property but leaves a lot to be desired in regards to its condition so I would not call it turn key. We plan on putting about $100-$130k on renovations to the units over the course of the next 18 months. 

In regards to the waste Managment, it was just not something that we had thought about.  Most other investments that we have, waste collection has been covered by city taxes, but we actually had to switch out the service into our name and pay for weekly dumpster service.  They had to send an inspector out to look at the dumpster location and verify it was still good before they would transfer it into our names. Besides cutting back some brush, we are good to go! 

@Tyler Bodi, thanks man, Give me a shout soon!

@Bevin Morgan & @Jeremy Sharp I will be at the meeting tonight! If either of you are there I’d love to meet you.  

@Raphael Collazo I cover Louisville too, and would be happy to keep my eyes open for deals that pop up if you’d like.