All Forum Posts by: Kellen Driscoll

Hey folks, my partner and I have a relatively new junk removal company in Tampa, Florida. My partner is a veteran US Marine and I am a USCG merchant mariner.

If your interested in junk removal please give us a call for pricing! 774-994-3018

Website: www.2friendsjunkremoval.com

Hey BP,

I have had some tenants complain about termites on a couple park owned mobile homes in Florida. Some of the quotes I’ve gotten are around $900 to fumigate and $900 additional to rid subterranean termites.

I was curious how other mobile home park owners handle termites.

Thank you,

Kellen

Hey BP,

I received a deal on a 10-unit apartment building from a broker. They stated the current rents were at an average of $480, but the market rent was $650 for 1 bedroom units in this area. I tried searching rent-o-meter for rental comps, but there were so few that it did not populate anything. I tried looking up the town in Zillow next; the result was (1) 2 bedroom house listed for rent at $750. 

My question is how do you analyze a deal in an area with little or no rental comps and what is the underlying reason for the lack of comps?

Local City Data:

Median Home Price: $99,500

Median Income: $42,377

Population: $5,938

Unemployment: 4%

@Joshua E. Balkenhol I would strongly recommend that you contact @Jeff Copeland for property management. He currently manages a property for me in that area. 

@Angelica M Garzon

I did think about trying to find a 5-10% loan on another multi family as an alternative.

This 4-plex cashflows easily $1000 a month as is and I would only be refinancing to use the fha loan again. Might be that I could do without the refinance.

@Gaetano Ciambriello

I suppose I just went with a lender that I had used before without really shopping for a non conventional loan.

@Charley C.

It was indeed the banks appraisal. 75% LTV.

I like the optimism, but if I want to use the FHA loan again soon then I was thinking it might make sense. Rather than waiting for rates to drop?

Thank you

Hey BP,

I wanted to get a second opinion before I pull the trigger on a 4-plex refinance. I used a FHA low down payment loan to purchase this property, I rehabbed it, and now I am looking to refinance out of the PMI and be able to use the FHA loan again.

Now I am going to have to pay roughly $10,000 for the refinance because the appraisal came in a little lower than expected and also closing costs for the new loan. I will gain roughly $30-40 a month in cashflow following the refinance, which is meager return at best.

The benefit that I am seeing is the opportunity to use the FHA loan again and a small amount of extra cashflow. My plan would be to use the FHA loan for a duplex/triplex to live in and airbnb/rent out the other unit(s).

Thoughts? Opinions?

Thank you!

Kellen Driscoll

@Joe Villeneuve

Thank you for the great advice I was thinking the same thing myself, though it is good to hear you say it!

Hey BP,

I have an interesting situation in where the partner for my last deal (strictly an investor) wants to become more active in the following deals. In our current deal he receives an 8% preferred return and the additional cashflow is split 50/50 between us.

In follow deals he has stated that he has his own investors that want to contribute money and he would like to become more active a deal with me in basically a 50/50 split. The thing that worries me is that one of us is going to end up doing all the work or the deal with become complicated with both us juggling different things and always requiring something from the other person.

My question is how can we utilize his investors funds while also keeping him in the deal. My role is clear...Acquisition, management and everything in between. What kind of split setup could work in this scenario?

Thank you!

Kellen