All Forum Posts by: Frank Geiger

Think about your repairs and CAPEX a little more. If you have a roof that lasts 20 years (240 months) and you are saving $41.25 so $9,900, will this be enough? But what about when you add the water heater or furnace. It may be. Just something to think about.

Also, have you talked to a PM about what you think you'll get for rent? The average is $800 according to Rentometer; what makes you think you'll get $825?

Another point would be to have established criteria. Does $150 cash flow with 13% CoC meet it? Only you will know the answer to that question. Confirm the numbers but if the deal fits grab it!

I have SFH investments but have worked in construction most of my life. The more units the better. In relation to a renovation/price point of view:

Wholesale pricing and discounts for larger renovations.

Easier to manage personnel in one location than multiple projects. Can be at different stages of rehab on individual units and increase productivity. A delay in one unit doesn't necessarily delay the entire project.

Experienced contractors. Clear barrier to entry for large multi-family. If they have done multiple projects, they are much more reliable when it comes to cost, quality, and schedule.

@Andrew Postell there are a few and I started reaching out to the members. Thanks!

Once you get a system down you will lose a lot of the worries. Make spreadsheets with the finishes you want and then apply to like properties. Sometimes overcrowding the project site is counterproductive and slows the entire process down.

Right now, I would get your baselines. How did the electrician, plumber, HVAC tech perform? Did they meet your schedule and standards described in the service agreement? Were they an expert in their specialty? How was the pricing? If they knock most of these baselines out of the park, you are very lucky on one of your first projects.

It's time to refine and get ready for the next one. The first reno is the hardest. Stay motivated and repeat!

Michael,

If your goal is to grow and the REFI will be costing you money, I would say sell. Depending on how much the property is worth, that can be a hefty DP for a property with higher COC. You may also consider a combination of a REFI and HELOC to have the property cash flow but still access the equity for more properties.

BP Team,

I have reached out to a few agents in El Paso but have received no responses. Does anyone know of any good agents/wholesalers in this area? Preferably an agent/wholesaler who understands investors. I will be moving there soon and am trying to owner occupy a multifamily property.

Thanks in advance! 

Wow you found a triplex near University City for 230k! Great find!

I would say storage and functionality are both really important. No tenant wants the dishwasher to pin them up against the sink or stove to open up too close to an island. We may overlook some of these things since investors don't always live in their properties.

Way too much information to sit here and type it all out for you. Start with exploring the website and attending one of Brandon's webinars. He goes through how to evaluate a property every week.

@Jesse Kreun Sorry you have to go through this man. Underperforming properties can really put you under quick so I would do some quick planning to see which ones to sell off first. Not sure how much in the red you are. At this point, you have to worry about putting food on the table. I think you need a new property manager. A property or two may be salvageable if you can get some good management. Are these properties older or in a bad area? That may justify some of the expenses being that high. There will always be operating expenses but it shouldn't be overwhelming high for that many years.