All Forum Posts by: Matt Kauffman

Welcome to the BP family Grace. I live in Canton, Ohio with family not too far from Boardman. I loved the blog posts and podcasts. Also follow @Brandon Turner on twitter for the latest podcast and blog/newsletter posts. It's where i get most of my info from. Let me know if you ever need anything. 

@Dave Foster

Dave, Thanks for the message reply. I have the 1031 language in my PSA with Hall of Fame. At this point I'm trying to analyze as many small to medium sized apartments i can find. I don't close till the end of March. So i have a few months, but I know that time will fly. any advice you can give me about what does and doesn't qualify as a legit purchases in Ohio would be great. I wish i could buy a new personal residence. I wonder if I could purchase agricultural ground with it even if it has a house on it that i'd want to live in.  

@Andrew Meyer

Thanks for the advice. I mentioned both sides need new kitchens and both baths need redone. Also needs new carpet throughout, and has hardwood in dining and living room now that is under carpet. If it's in good shape I'm just going to leave it as it is. Need to add a half bath on one side and expand the half bath on the other side. Lots of work but I believe it will be worth it. 

Hey BP family, 

I'm working on a duplex deal right now. I've never done a deal like what I'm trying to pull off. So I could use a hand figure this out. 

3bd 1ba one side 3bd 1.5ba other side

Listed @ $115,000

Potential rent after rehab - $850/side

Total Est. rehab expense = $50-60K obviously major Cap Ex with complete redo of kitchens and baths.

ARV = $180K

What i would like to do is Private money or Hard money finance the purchase and rehab cost and then refinance as soon as I can. 

I want to buy it for $80-90K with Cash (from private or hard money @ 15%apy)

Have about $140K in total rehab/purchase cost and refi at 75/25

Take the cash and pay off private/hard money loan and have a 25% equity stake as well as tenants paying rent. 

anything I'm missing or should be aware of? One thing I realize is that the numbers won't be perfect and I'll probably still end up with at least $10K out of my own pocket and maybe more, but I figure I could live with that to have this kind of deal and property. 

@John Turner

Link didn't work above in my previous reply

@Kyle Doney

I knew about their plans 3 weeks after I bought the place. However at that point no one really seemed to know how soon these plans were going to go into effect or where they were going to be starting their building plans. So I started the rehab process and right before i was done they called and offered me their first offer. In the end i probably lost out on some money, but going through the whole process was really good for me. rehabbing, then going thru the applications and showing the place, and finally renting the place was important. Who knows if i would have had the guts to pull the trigger on the next 3 places i bought without my first experience at this property. All in all, I'm glad i did what i did. 

@John Turner 

The other units i acquired via auction. There were 7 duplexes being sold around the corner from me in a nice neighborhood where all the duplexes were near carbon copies of each other. I was so nervous buying properties at auctions especially since I couldn't inspect them until the day of the auction. I had about 2 hours before hand and asked a GC friend of mine to help tag team them with me. I bought the 3 nicest ones. I'm normally looking for properties that need some TLC to force appreciation, but I figured that buying Turn Key properties for about $15K less than on the MLS was about as good as finding something that needed work to appreciate. All the tenants have stayed and I increased the rents significantly on all of them as well. It's been pretty good so far. Now I'm looking for some larger commercial properties that need some TLC so that i can add value and rent increases to them by making them better places to live.

Hey BP family, just wanted to tell you my story about my first RE deal. I spent nearly 2 years learning, reading, analyzing before I finally pulled the trigger last October on a Bank owned duplex. It sits directly across from the NFL Football Hall of Fame and is in a great location. I paid $50K for it with cash, spent $30K rehabbing it. Three weeks after I bought the house the NFL Hall of Fame announced a giant expansion that would require them buying my property. 

I have mixed emotions still about this because I'm getting $600/side rent plus pet and garage fees. I have great tenants who pay on time and don't need much ever. It cash flows really well. But as of this past week I've reached agreement with the HOF. I'm getting more than 3x what I paid for it but not quite double what i have into it. Either way, I feel I've done well in the sale. At this point I received the 2nd highest price of any of the properties they've bought thus far. 

I'm intending on 1031'ing the proceeds into a larger property, as I'm looking for a small to medium sized commercial rental property. Since this property was purchased I've also added 3 more duplexes to the portfolio. I went from 0 to 8 units in 6 months. I'm learning on the fly but am loving doing this. BP forums, blog posts, and podcasts have been huge for me. 

Biggest part for me is that I've clearly identified my goals regarding where I will buy properties and where I won't. What kind of properties I want to buy and which I won't, as well as meeting some really great people who've helped me out a  lot. BP has played huge part in that. Thank you and look forward to grabbing a few more buy and holds down the road. 

So I did a little research as to what they've paid so far. Their first offer to me was based on the 2 properties next to me and they justified the price by the sqft. In doing my due diligence i discovered their price paid to other properties based on their price/sqft and per sq ft of house as well. 

They paid an average of $15.70/sqft of lot space and $93.51/sqft of house. by those numbers their offer ought to be between $141 and 157K. I countered and said said they needed to raise the offer based on this research. The came up to $145K and I have since countered to $155K. I'm going to hold there. Thanks for the ideas. I'd like to think i could hold out for more, but maybe I can't and/or don't want to risk it. 

Thank you to all of your responses. I guess I don't feel I'm asking too much for my property considering that the property across the street sold for $175K. They have tried to negotiate on square footage, but I know a family on the street had a fire and before they rebuilt they approached the HOF about buying it and they had the guts to lower their original bid on it because it had fire damage now. So they negotiate on square footage with me and then turn around and tell the people down the road their property is worth less now than because it has fire damage. Can't have it both ways now. 

I'll try to keep the updates coming on the property negotiations. 

Matt