All Forum Posts by: James Bode

Really depends on your situation. Can you tell us a little more, is this primary residence, investment, want to put 20% down?

I use Hendricks and Olsen in Meridian, very versed in Real Estate. That said, your questions I think I can answer, give me a call, I am in Eagle. 208-991-0341

I have asked for and received a discount in the past. It is partially volume, but partially what sort of client you are. I have found deals and sent them to my agent in the past, for them to just write up the offer. I make good offers that get accepted. I therefore am a very easy client, my realtor in the past makes a good commissions for very little work. Now I am a Realtor, so I see the difference in easy versus more difficult clients. 

I like Interest Only if you are taking money out to buy an asset, not a liability! Boat- No, Rental Property (That has cash flow) - Yes. You are just planing the spread. I'm a Realtor in Boise, reach our if you want to meet for a coffee and talk through it.

Either works, but personally I would do the Rehab Rental strategy. The reason I say this is because the home that makes the best rental is not normally the home you want to live in. The home you might want to live in might be nicer, and might not provide the best cash flow. Just my two cents, but again, both work.

Investment Info:

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

Purchase price: $465,000
Cash invested: $116,250

Value Add! Won the duplex by waiving Appraisal Contingency and offering a Minimum $5k for Repairs as part of the Inspection Contingency. Walking the property it was clear that owners wanted out based on some easy repairs they did not complete. Its all about thinking like the seller!

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

I have Single Family and Vacation Rental, want to cascade to larger Multifamily.

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

MLS, moved quickly when it posted.

How did you finance this deal?

Traditional financing, but I have had success going with online mortgage companies. My experience has been that they give the best rates, and since everything is automated it really comes down to you responding to their requests, rather than the expertise of your loan officer.

How did you add value to the deal?

One side of the duplex was empty. I installed new floors, back splash, light fixtures, and did a bunch of maintenance. O side of the duplex had a long term tenant, I offered them a "fair" but firm rent increase, with planned 1 & 2 Year rent increases to bring rates up to market. Plan is to renovate this side in a year or two and raise rent drastically.

What was the outcome?

Property has nice cash flow, higher that pre-purchase projections, and has added $80k in appreciation in 6 months!