All Forum Posts by: John Culotta

@Adam Fleck - Thanks Adam for that valuable info. I spoke to a contractor regarding the MF using septic and well, and he indicated that "south central district health would not allow it". I haven't verified this yet, but that's been one of my biggest concerns. Still a lot of due diligence ahead - Thanks again!

John

Hello BP Community - My wife and I are looking at several properties to BRRRR that are on well and septic and have the potential of transforming the house into a multifamily. Plus, build additional MF building ($105sf new construction) on the lot since there is plenty of acreage with each property. We're not experienced in this and wondering if you could share some wise advice from experience?

- Would this be a health issue (septic & well) and would we have to tap into city services first if available?

- Is it possible to rezone from Single to Multi use, and if so, how complicated is it?

- We want to go up / out with construction to add more sq feet on existing homes with basements. Would you do it?

The properties already have basements (some are separate living spaces already) and technically are duplexes. We'd like to build another unit 2nd story to convert to a TriPlex or 4plex. 

Anyone with this type of experience, especially in Boise Idaho area, that could share some wise advise? 

Thank You In Advance!

@Chris Levarek - Wow, way to go Chris! Very inspiring. The title of your post caught my eye because my wife and I just last week set a goal of 24 - 36 doors by 4th quarter of 2020. In 3 years 100 doors. Big goals!! We have no current portfolio, but over 16yrs experience and starting over.

We've been focused on building our team and building our brand just like you suggested.

Are you new to RE investing?

Any pointers on finding deals, analysing, making offers, and structuring your syndications? I would be grateful.

Again, Congratulations Rock Star :)

@Michaela G.

Sorry to hear the challenge you're facing.

Have you thought about Cash For Keys?

Offer $500 cash to move out by certain date. $100 cash now in good faith and the other $400 when she's out and signs an exit agreement. Less painful then legal fees, harrasment and you can get a new tenant.

All the best,

John

@Dawson Henshaw - Good point. I was considering those locations including St. Al's and St. Lukes hospitals. It "appears" on the surface that we can't go wrong anywhere in the treasure valley with such massive growth.

@Greg Dickerson - I agree Greg. I'll do more due diligence as mentioned and also let the numbers and inventory be my guide. 

Got another question for you:

Is there a major "Time Difference" in getting the property completed / fully rented when comparing new construction and purchasing an existing value-add property? - all things considered equal (4plex, location, total cost, etc.). 

In other words, if it cost me just as much to BRRRR as it would to build new, I'm wondering if I should just focus on building? The cost per sq ft for value add is about $120 to $130. Even if I negotiate down to $110 I'm now getting close to the the new construction numbers from what I've been told by my GC friend.

BTW, my GC friend is a city inspector in boise full time who builds on the side. He flips a couple houses per year and he has about 5 new builds going currently for other investors.

Thank you!

John

I'm in the Boise, Idaho area which is booming to say the least. Massive growth, tons of construction of apartments, housing developments multi families, commercial big box retail. High rental demand and little vacancies in comparison to inventory with high rents. Finding distressed properties is challenging.

I have a friend who is a GC and I've seen his current duplex construction. He indicated a possible $100 a square foot price and perked my interest.

I'm considering new construction of either a fourplex or small apartment building. I would be grateful for any words of advice from those who have been there?

My original strategy has been to build a portfolio of value-add multi families and apartments through syndication. I have most of my team put together, 16 years of experience, but no portfolio currently. We will be debt-free in the next couple of months and some cash in the bank to get started.

Thanks in advance!

@Michael Ealy - thank you very much for taking the time to respond. Very insightful and wise advice. I'm right with you on your thought process and strategy. Yes, very interested in your book. Have a great day!

John Culotta 

Congratulations @Michael Early. What a great inspiration for all of us interested in value-add multifamily investing. 

What would be your simple step by step process to accomplishing what you've achieved? 

Who have you modeled your strategic acquisition strategy after?

It would be super, super helpful and I would be grateful to learn your method to achieving just a small part of what you  have you achieved. 

Have you written a book? Were you a guest on the BiggerPockets podcast yet?

Thanks & All The Best!

@Tab Teehee thanks for replying. Very helpful.

@Tab Teehee great pics - thanks!