All Forum Posts by: John Prucha

I've definitely found myself drawn to these properties and managed to pull my eyes away because I'm not sure war zone investing is the way to go. One possibility is to talk to a few property managers and get their opinion about the property, location and possible tenants. 

Investment Info:

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

Purchase price: $350,000
Cash invested: $70,000

SFH with tons of deferred updates and zoned for an additional dwelling unit (ADU). The goal at purchase was to house hack and convert the detached four car garage into a 2/1 ADU.

Once done the project should comp out >500K and the ADU should rent for between 1500 and 1700 which will cover the bulk of my mortgage. Let me know if you have any questions.

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

I was having trouble finding a multifamily that would meet the 1% rule.

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

Studied city zoning.

How did you finance this deal?

Conventional loan followed by construction loan and will cash out refinance at the end

How did you add value to the deal?

Built and ADU

Lessons learned? Challenges?

Political winds change and can make life hard. Stick with multi-family that is already built.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Collegiate Peaks Bank for the construction loan

Investment Info:

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

Purchase price: $350,000
Cash invested: $70,000

SFH with tons of deferred updates and zoned for an additional dwelling unit (ADU). The goal at purchase was to house hack and convert the detached four car garage into a 2/1 ADU. Due to changing zoning rules with the city of Denver there was significant delay but they eventually approved the project and the project is underway. Construction loan with Collegiate Peaks Bank is being used to fund the project with relatively low interest rate of about 5.5% during construction.

Once done the project should comp out >500K and the ADU should rent for between 1500 and 1700 which will cover the bulk of my mortgage. Let me know if you have any questions.

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

I was having trouble finding a multifamily that would meet the 1% rule.

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

Studied city zoning.

How did you finance this deal?

Conventional loan followed by construction loan and will cash out refinance at the end

How did you add value to the deal?

Built and ADU

Lessons learned? Challenges?

Political winds change and can make life hard. Stick with multi-family that is already built.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Collegiate Peaks Bank for the construction loan

Hi David, 

Currently looking for a good GC in Huntsville, did you have any luck? Would you mind sharing your contact?

Thanks!

John

Arlan, I love it. Thank for the reply. I'm trying invest into multifamily properties and am new at the negotiation game. I guess a lot of it will be driven by experience and market knowledge as I continue to learn. 

I recently started my investment journey and have been making offers on places with the "home run" price in mind. I would love to hear what has brought others the most success. Making the offer at the home run price? Offering less and negotiation towards the goal? I'm all ears, and thank you!