All Forum Posts by: Greg Kasmer

@Sarah Rilling - I always like having a 1:1 conversation with the potential coach/mentor to get a flavor for how they work with people.... basically to see if their is a connection. I joined a coaching program because I connected with my coach and I also said "no" to one because they wouldn't match me with a coach until I joined/paid. 

@Mario Morales - As some others have said I think the strategy is sound, but the key would be to find a distressed property that you can drive up the value with renovations so that the new value is 25% higher than the purchase price so you pay back your HELOC. You'll want to incorporate interest costs on the HELOC while you're using it, but that will add to your holding costs in addition to utilities, closing costs, etc.. Good Luck!

@Anthony Zotto - By the way you ask the question I assume you're going to self manage the property instead of using a property manager. If I were you I would get a good flavor from the tenants how they interacted with the previous owner, essentially, how they paid, how did they make repair/maintenance requests, when/why did the communicate with the owner, etc... In essence you want to understand their background. Then, I would share with them how you manage properties and what your expectations are for them as well as you - essentially explaining how you work with people renting from you. Inevitably there will be some "friction points" that you'll have to discuss/mediate, but ultimately if they are not willing to adopt a majority/all of your processes, then I think you mutually set up a date that works for them to move. e.g. 60 days, 90 days, etc... You want to be understanding and not "kick them out", but at the same time let them know you operate differently than the previous owner and if they would prefer not to operate that way that's a decision they can make. However, if they can adopt most/all your properties I think you also established a stagged approach to increasing their rent. (Maybe increase $150 every 6 months until you get to market rents) 

@Arthur Tolentino - I'm in the process of finalizing a BRRRR on a quad in the Philly suburbs. I bought it last year and thus far have: 1) Appealed assessed value to bring down taxes, 2) Got better (less expensive) insurance, 2) Rehabbed 3/4 units, and 3) increased rents $300-$400 per unit along the way. Right now I'm considering refinance options to pull out some equity. The ARV on small multifamily can be a bit tricky as most appraisers will like to use the comparable approach as to an income/NOI approach typically used by larger (5+) multifamily properties. Message me and we'll connect!

@Shaun Ortiz - I did BRRRRs single family homes, but transitioned to multifamily... not necessarily to get away from BRRRR investing, but to do it on a larger scale. In a way, I think the BRRRR process is really the process of "adding value" to a property and then pulling out that forced equity as much as you can. To me, that can be done in many asset classes, but I think most people associate it (nowadays) with single family residential investing. In fact, right now I'm looking to BRRRR a 10-30 unit building/property if I can find one! Good Luck!

@Matt Schreiber - I do believe it's tough to get 2-4 multifamily to cash flow on the market right now. I think you need to treat those 2-4 buildings almost like larger building looking for upside in rents and/or reductions in expenses in order to get it to cash flow. I'm about to stabilize a quad that is now cash flowing (after 8 months) because I appealed taxes (and won), got better insurance, and then renovated 3 of 4 units and brought rents up $300-$400. At first it wasn't cash flowing, but now is... Happy to talk if you'd like. Good Luck!

@Erick Armando Gonzalez - I like Bill's suggestions. Either one would hopefully "light a fire" under the tenant to get it done. I also have a clause in my lease that states what will happen if proof of insurance is not provided - which is similar to what Bill indicated above. However, the most effective method is to simply tell the tenant that they'll need to provide proof of insurance prior to or on the day 1 of the start of the lease, otherwise the keys will not be provided to them. I had a fire in one of my houses recently and the tenant was very glad the had insurance! Also, be sure to have your LLC as an "additional insured" on their insurance policy as well. You're not a beneficiary of the policy, but you get notified when a policy is cancelled or renewed - which also helps!

@Lou Cautero - I'd be happy to talk with you and see if we have any common interests. Send me a message and we'll talk!

@Chad Chase - I think funding a fix and flip with a HELOC from a primary house could work. To me, you'll get a similar (if not slightly better) rate than hard money and you'll also avoid paying points for the hard money. The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized. I have a few HELOCs and their payment structure varies. (FYI - I tend to use the interest only structures first). Good Luck!

@Jordan Miller - I think to give proper guidance it would be good to share more details on the revenues and expenses on the property. For example, what is the monthly revenue for the property and what are the "All In" expenses, including mortgage, taxes, insurance, utilities, repairs, etc... Essentially are you cash flow positive or negative each month? It sounds like you're cash flow negative, but not sure you have all the details/line items listed. Also, what is the equity in the property? Another way to say is that what is the value of the property (today) compared to what is owed on the loan? You can then measure the cash flow impact versus the potential cash you would obtain upon a sale. The only other question I would suggest is that you do engage a property management company to review your quad and review your monthly financials. They would likely be able to confirm that your expenses are reasonable for the area or that your rents are at market rates. Who knows, maybe your rents are $200-300 below "market rates" and that could be part of your solution. Good Luck!