All Forum Posts by: Jeremie Edwards

My partners and I just broke ground on a 6 unit build. Its been about a year of red tape and other issues, but we finally got it off the ground! 

I thought it would be fun to do a thread as we progress through the project and share what we are learning, as this is the biggest project we have done.

So far what we have learned is everything takes longer then expected. The engineering, both structural and civil took months to start due to a backlog of projects. The city approval added even more time. From the financing aspect, I was surprised how simple and easy getting a commercial loan as compared to a personal loan.

Here are some basic numbers. We have a build contract for 1.2 mil. We are financing for around 900k of that, and using cash for the rest. The appraised value upon completion is 1.8. We are building 3 bd 2.5bth units, that will rent for 2000-2200 a month. From a numbers standpoint, it looks really good.

Our current plan is to keep the project, and as such we have the ability to covert the loan over to a 10 over 30 commercial loan.

I will add to this post as the project progresses.

The first foundation is being set up, the contractor sent me this today. 

Investment Info:

Large multi-family (5+ units) buy & hold investment in Lebanon.

We have a 988k loan to build 3 duplexes on a lot. The appraised value is 1.8 mil upon completion. Investing about 300k in cash to complete the build.

We bought the lot with another 5 years ago for 40k each.

I thought it would be fun to do a blog style post as we build the three.

As someone who has used this particular track, here is what my impression of how it works. YOU have to keep the "majority" of your possessions at the address. You have to list the home as your primary address with your command, and state tax forms. Also, you have to prove that you intend to live there after your deployment, this isnt hard. Frankly, i have never heard of anyone getting checked after the papers have been signed, and plus as a deployed member you are protected from most legal issues until you return. The occupy time is one year, or longer depending on your state.

Hopefully this helped.