All Forum Posts by: Johnnie Bembry

Hey everyone!

I'm currently looking at an out of state multi-family package that includes 3 triplexes and 1 duplex for a total of 11 units. The asking price is $327.6K for the entire package with a "little wiggle room to negotiate". Currently, all 11 units are rented out bringing in $4,650 before expenses and cash flowing at $2,050 after expenses (according to my calculations). The seller is also updating things like paint, gutters, and hot water heaters to name a few things. I don't have much money ($5K) but I think I can get more money from family just not enough for a $65,520 (20%) down payment. I have pretty good credit 780 and no debt other than my primary house and car.

My question is should I seek a hard money lender or ask for seller financing? If the answer is hard money lender, is it just about applying to various hard money lenders until I get a yes? If the answer is ask for seller financing, how would I go about asking if the seller is interested in seller financing? I seen the property on Realtor.com and reached out to a realtor for more info so we're in the very beginning of all this. Any advice or tips are greatly appreciated. If I'm over my head I'd like to hear that too. Thanks!

@Jayden Grissom
From everything I learned on here there is no "normal cost". There's a lot of variables such as location and size to name a couple. I'd suggest seeing what other multi-family units are going for in the area you're looking in. That should give you a general idea of how much your property should cost. 

@Matt Harmon Thank you, I'll PM you. 

@Carl Willis Thank you, I'll look into her and her company. 

Hey everyone, I'm looking to invest in a multi-family rental property in Wichita, Kansas so I'm in the search for a good property manager/company. You guys have any recommended property managers/companies in Wichita, Kansas? Thanks in advance! 

@John Teachout I haven't been to the property yet because I'm out of state but it's my hometown and I'm pretty familiar with the area plus I was in town/area a couple of months ago but if things get a little more serious I'm definitely going to go check it out. Based on pictures, not much else is needed other than maybe a good property management company to attract tenants. 

@Jacob Sampson They're asking for 175K but based on the area/comps it's overpriced. As far as available cash, this is what I'm saving for/working with a partner so I/we can prepare for this period of waiting until we find tenants. Thanks for the advice on insurance cost/taxes.

Hey everyone, I'm a newbie looking to buy my first rental property with my strategy being BRRRR. I'm looking at a 5 unit multi-family property in a C neighborhood and on paper (based on the numbers I have) everything looks good. The cap rate is about 12% with cash flow being over $1,000 per month (with all 5 units rented out). There are just a few things I have questions about/am concerned about...everything such as HVAC, plumbing, electrical are brand new as well as the kitchens and bathrooms yet there's only one unit is currently rented out. Is the reason one unit is rented out because of the neighborhood, lack of management or another reason? How would I figure this out? If a property management company is the answer, would they also tell me how I could improve the interior (as it's just decent right now) to attract tenants? A realtor I'm talking to (she's also an investor, flipper) says the current rent ($450) is at market price so I don't think that's the issue but I'll also do my own research. Another question I have is how do you guys calculate taxes and insurance to accurately calculate the loan payment? Lastly, how do you guys find hard money lenders? Sorry for being all over the place but any advice and/or resources are greatly appreciated!

I'd try Lowes or Home Depot's, they usually have stuff on clearance for small things like dents or simply returned and I heard you can even bargain with the manager because they just want it gone. 

@Curtis LeBleu I’m a newbie but from what I’ve read on here, you don’t necessarily need to evict to renovate. You can coordinate with the tenants to work while they’re home or if they’re comfortable with it, while they’re at work. I’m not sure how you’d handle the business part of letting them know the rents are raising but I’m sure our fellow BiggerPockets bros & sis’ do! 

I’m thinking about bidding on a couple SFRs at an auction. What are some things I can do to make a better/more informed decision? The houses I’m looking at don’t seem to need much cosmetic work but I was thinking about hiring an inspector beforehand to see what issue there are with the house. Any other suggestions? My plan is to bid, hopefully win then use hard money to rehab before renting and refinancing. I’m open to all advice and constructive criticism. Thanks in advance!