All Forum Posts by: Daniel Crenshaw

@Ryan Beasley - feel free to connect with me as well. I'm actively looking for a good sfh/multifamily flip or buy and hold in that area (Augusta, Harlem, or Grovetown). Thanks!

@Jaysen Medhurst - Thanks for the feedback. It's certainly beneficial to refine my numbers to be even more detailed and specific. I like the idea of leveraging 15% combined for both repairs and CapEx. You made me take an extra look at the tax history and I've found on the county tax records that there is a balance from year 2018 which also includes a 'Specials Tax' where I'll definitely have to look into further for clarity. Aside from the 'Specials Tax' 2018 General tax bill was $757.62.

+ The goal is to use a HML for the purchase and rehab cost and refinance in 12 months.

But overall, you've definitely highlighted some important expenses that I need to revisit. 

I'll follow up in a few days with my updated projections.

Thanks!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I recently went in on the Pin-Point Profit monthly subscription with another wholesaler and found that so far only a few "skip trace" contact numbers populate when generating my filtered list (i.e. Vacant properties and other filters). For a product that claims skip tracing is already included but only generates maybe less than 1% of numbers is very disappointing. Now my partner and I are back to square one regarding skip tracing and looking into 3rd party skip tracing services. We'll see how things go once we start making our cold calls or sms blast if. Will update you guys very soon.

I would want to know the name of that Contractor who ditched the project so the BP community can ensure we never work with them. 

Investment Info:

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

Purchase price: $79,000

Cash invested: $24044.02

I am always up for a challenge. My first real estate investment turned out to be a Multi-family duplex in which a lot of newbies would have been petrified of, but I knew after running my numbers that this was a deal I could not refuse.
This duplex was actually listed as a rehabbed duplex that was sitting on the market for over 90 days.
It was essentially rent ready other than a few minor cosmetic upgrades.

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

The numbers. After analyzing this deal I stood to make at least $450/mo in Cash Flow.

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

I found it myself on the MLS (Zillow). I offered the seller 20% below asking price and they counter offered 12% below asking price and I accepted it because it was $1000 below my maximum offer budget amount.
After the inspection, the inspector found several items that needed immediate attention like drain pipe in crawl space was disconnected from house, new AC units were needed and a few more items that the seller actually agreed to repairing before closing.

How did you finance this deal?

Conventional loan through Local Credit Union bank.

How did you add value to the deal?

Mostly cosmetic enhancements were made on the property.
New bathroom vinyl flooring
New Toilet
New Ceiling fan
Painted old kitchen cabinets bright white with new Hardware handles.
Installed Refrigerator
Added Blinds
Replaced all wall outlet covers
Replaced upstairs unit Sink faucet with new modern hook faucet

What was the outcome?

Two days after closing, my Real Estate agent/Property Manager was able to find a tenant and signed contract with deposit in hand for one of the units.

Lessons learned? Challenges?

When dealing with the banks they want to ensure that you have plenty of reserves sitting in the some sort of money market, whether it be 401k, savings/checking, stocks, etc. They want to ensure that if something goes wrong early in the deal that you have enough to cover expenses.
Considering the deal was completed in December, the lender required the full amount of a years worth of home insurance to be paid. Good thing I shopped around for the best deal on home insurance.

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

I certainly recommend working with Brenda Bradley. She is a woman of many hats and yet proficient and reliable.

@Mark Bookhagen - Hey thanks for the input Mark. I anticipated the repair reserves would be low considering this was going to be a full rehab. But you can never be too sure. 

What would be your projections for Vacancy and repair reserves?

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*This link comes directly from our calculators, based on information input by the member who posted.

@Natalie Schanne - Hey Natalie, that's an awesome approach. The great thing about my location is that it's literally within walking distance from 2 private universities and within 5 minutes from our business downtown district. The potential income when renting out on a per room bases would be phenomenal. Thanks for the awesome nuggets.

@Kathy Henley - It sounds like playing it safe with just one AirBnb unit might be the best strategy for now. Thanks for the response and wish you even more success with your properties.