All Forum Posts by: Jason Hopkins

Depends on the market your looking into.  In Memphis that is doable. 

Thanks for sharing, I will get active on this ASAP.

@Gary Walker. Thank you Sir. Tenant for the green door unit is moving in today.

@Samuel J Gonzales IV. I hired someone

@Michael WallimannThanks

@Stephen Akindona  Your in Memphis, you know how hard they are to find in decent areas. 

Investment Info:

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

Please see details below on this buy and hold project which is yielding me 17.3% ROI.

Purchase Price $59,500

Repairs $9,000

Total $68,500

Monthly Income $1,500

Monthly Expenses $513

Monthly Cash Flow $987

Annual Income $18,000

Annual Expenses $6,159

Annual Cash Flow $11,841

ROI 17.3%

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

Multi door units are always a plus. They are hard to find in decent areas so this was a great pick up to add to my portfolio.

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

Met seller via BP a few years ago. Seller was an out of state investor that was tired of dealing with his property manager. After 5 months of negotiating we agreed upon a price that was fair for both sides. I was able to close on this deal within 10 days.

How did you finance this deal?

Cash

How did you add value to the deal?

New roof, paint, flooring, doors, updated electrical panel, fixed plumbing, new blinds, new light fixtures, drywall repair, landscaping, final clean

What was the outcome?

Expected to rent each side for $750. Could have flipped this property with ease but decided to keep it for long term rental.

Lessons learned? Challenges?

Challenges:
Due to past tenants stealing utilities at this property I had to go through some extra steps with the utility company which was time consuming. In addition to that one of the units was vacant for almost two years so when we turned on the water we found a lot of leaks in the wall and ceiling of the kitchen. Lately, the city's code department is running behind so it took 3 weeks for them to come out and inspect the property. Thankfully everything passed on the first visit.

Trust me, 6K-8K in repairs sounds too low.  I would plan closer to 12K to 15K.  Put your offer in at 70K and see what happens.  Do not be surprised if someone out bids you, inventory is low and out of state investors are accounting for about 40% of purchases each month in addition to local investors.

@Rachel Luoto  What zip code is the property located in?

@Cordero Martin sounds like you need to educate yourself a little bit more before you go out and start trying to close deals.  You can do this by listening to podcast on here or checking out videos on youtube that will go over this in detail for you, trust me it will help.  A double closing is where you buy the property from the seller with your own funds and then turn around and sell it to someone else (buy it for 20K sell it for 30K).    An assignment closing is where you find a buyer for your contract with the seller and you assign it to a buyer which means you dont have to use your own money.  You can do either but most wholesalers like to use assignment type closings.  You can find out who does assignment closings in your area by posting the question in the forums for the city you invest in and someone will point you in to the right closing attorney.