All Forum Posts by: David Huynh

@Scott Martinson Thanks for the 2cents. It has been continued confirmation that while the numbers can make sense and I can break the 2% rule, there would have to be a LOT of work to continue to meet and exceed the levels of expectations on any property that I like owning. Not 1 out of 7 people who have chimed in have said that it would be a good deal unless I got it for 350k, even then, with plenty of work ahead. 

@Jeremy Pace Yes the utilities are separated and those are the common areas (which I think is high).

Some others have private messaged me (thanks!) and it sounds like there will be some new buildings and plenty of renovations with the bigger buildings/players. Which would force me to also update the building to get FMR otherwise I'll have to consider renting out for $200/room and that is not very profitable and I think there's a time where it's just too cheap.

I think the sub 400k offer is a solid one and I'll have to stick to that 350k range or pass on it. 

Rex,

My goals are to build passive income (least amount of management, drive time, etc.). 

I looked at this St. Cloud property as a value add opportunity and then selling it off to a turn-key investor. You are 100% right, it is not apart of goals. I'm looking to accelerate the business as quickly as possible and minimizing risk at the same time (which is hard, haha).

I do keep all of my properties within 10 miles of Minneapolis - St. Paul, but will expand to other areas dependent on support, management, contractors, etc. 

I appreciate you playing devils advocate, I'd rather feel like an idiot posting and chatting rather than putting a half million dollars on the line.

Hey everyone,

PLEASE CHIME IN! I need help with a potential deal on the table, ANYTHING helps

I am working on a non-MLS deal for an 8-unit property in St. Cloud, Minnesota (MN). I am from the Twin Cities and lack a lot of knowledge of the area, fair market rent, major employers of the area (if any) and etc..

**We have yet to settle on a purchase price but I will include all other details so far.

It is an underperforming 8 unit on 6th Ave S (within walking distance) to school. All units are 4 bed / 1 bath with 10-12 designated parking spots. It has been underperforming

• Under market rent ($500-$800 per unit)
• Higher vacancy (25%)
• "Families" packed into the 4 bed room w/ smoking and etc.

The seller is looking to sell this property and it is a non-MLS deal currently. It is surrounded by student housing and is on campus within very close walking distance. My goal on this property is to get it back to it's performance and rent it out at FMR (which I don't know... $225-275/room per student)

Here are some of the financials -

Ask: 520k

Monthly gross rent: $5000

Property taxes: 7k

Insurance: 2.5k (for me)

Gas & electric: 3.5k

Water: 1.5k

Rents should be at least $6400/month or $7200 depending, (possibly higher?) on price per unit. I think there is a huge value add here, and the seller is willing to sell for less (425k? 450k?) *Remember his ask is 525k*.

Financing options : 10% down 10-20 year CD option (which I find of HUGE benefit).

Please assist and throw everything out there:

What are the average price per bed room?

What do you know about FMR?

What would you offer?

Is the competition high for student housing?

Let me know if I left out any details.

Hey everyone,

PLEASE CHIME IN! I need help with a potential deal on the table, ANYTHING helps

I am working on a non-MLS deal for an 8-unit property in St. Cloud, Minnesota (MN). I am from the Twin Cities and lack a lot of knowledge of the area, fair market rent, major employers of the area (if any) and etc..

**We have yet to settle on a purchase price but I will include all other details so far.

It is an underperforming 8 unit on 6th Ave S (within walking distance) to school. All units are 4 bed / 1 bath with 10-12 designated parking spots. It has been underperforming

• Under market rent ($500-$800 per unit)
• Higher vacancy (25%)
• "Families" packed into the 4 bed room w/ smoking and etc.

The seller is looking to sell this property and it is a non-MLS deal currently. It is surrounded by student housing and is on campus within very close walking distance. My goal on this property is to get it back to it's performance and rent it out at FMR (which I don't know... $225-275/room per student)

Here are some of the financials - 

Ask: 520k

Monthly gross rent: $5000

Property taxes: 7k

Insurance: 2.5k (for me)

Gas & electric: 3.5k

Water: 1.5k

Rents should be at least $6400/month or $7200 depending, (possibly higher?) on price per unit. I think there is a huge value add here, and the seller is willing to sell for less (425k? 450k?)  *Remember his ask is 525k*.

Financing options : 10% down 10-20 year CD option (which I find of HUGE benefit). 

Please assist and throw everything out there:

What are the average price per bed room?

What do you know about FMR?

What would you offer?

Is the competition high for student housing?

Let me know if I left out any crucial details.

Hey Darrin, Welcome - do you know much about the St. Cloud student rental market?

@Denice S. Thanks for the response, very detailed and well laid out. I did search it on the menu bar and found another gentlemen who successfully had done this up to 70k. 

@Jacob Sampson Thank you for looking out too for me. 

My properties and employment can and will cover paying for the whole downpayment over that short span of time. This isn't a grand slam deal but a lot of investors would jump on it if it were available or on the MLS. The idea would be for me to pay all of the credit cards used 3 @ 10k to cover the initial downpayment (50k) or so. I do always want to keep my doors open on how I fund the deals, the hard money/private money route was just too expensive and probably more of a hassle than paying the 3-4 points upfront (3 points on 30k = $900).

If anyone else has additional ideas or has successfully done this, please chime in. 

Yup, issue is downpayment upfront.

Hey hey hey!

I'm looking to get feedback on people who have successfully done this. I've never credit card hacked (unless you call what I did hacking) but I'd like to learn more about it. 

It started when I bought a property and all the banks rejected financing it, since over 55% of them were not owner occupied. So I went all in and used the checks that my credit cards were sending me, along with my savings to close on the property (deal worked out wonderfully and it is one of my best properties today). 

So, I found another deal but cannot find 25% for the down-payment. I refuse to leverage any of my properties since they cash flow well and are all performing. Have any of you had 5-6 credit cards with 10K+ available balances that you've taken advantage of? Did you hack or get around this well? Walk me, through the process. 

My thought process is to loan myself 30-35k for the downpayment at 0% interest for 12-18 months and then pay it all back/off. The only charges are the 3-4 points upfront. 

Shoot holes in this thing and teach me or talk to me of the pros/cons.

FYI, I don't know who you network with, but if you are looking to make a profit, you have a better chance being a bank and lending the money out as a hard money or private. With that ask and rent, there is no deal on the table, regardless of what appreciation could be one day. I'm being honest so you can protect your money.