All Forum Posts by: Account Closed

@Jonathan Stone Yes, I bought the property in March of 2020. I refinanced in December of 2020. Got all the private money out at 75% LTV. Had to pay interest and repairs out of pocket, but if the unit that I am living in rents for the same as the other unit- which is conservative because it is larger and nicer- it will cashflow $200 a month after factoring all costs, 9% vacancy, 10% for repairs, and 10% for capex.

@Sean Sloop You are right. Turnkeys in this market break even at best, no cashflow. You have to be creative! I am on over 40 wholesaler lists in the Grand Rapids area. I would  say only 4 of them actually send me deals. The others either have buyers that buy all their contracts or what they send..well are not deals. That is why I have started cold calling absentee owners in Grand Rapids. 

@Morgan Basham Of course! I go to a couple of REI meetups every month, and there are a lot of wholesalers, investors, and landlords at them. We would love to have you at the next one! I sent you a connection request if you would like to talk further :)

Thank you @Dmitriy Fomichenko!

@Sean Sloop The offstreet parking was slanting towards the backyard in the alley behind the house. Getting into the parking spot was easy. Getting out was impossible unless you had 4 wheel drive. My brother owns a forestry company here in West MI, so I had him come over with some clean fill and we packed that down with his skidsteer, then we added some gravel on top of it. BOOM. Offstreet parking. 

Investment Info:

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

Purchase price: $133,000
Cash invested: $11,000

A duplex on the Northeast side of Grand Rapids minutes from the Medical Mile and GVSU college campus.

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

I was looking for a house as a primary residence, when I was introduced to the idea of house hacking by a friend who was doing it. I loved the idea of a tenant paying my mortgage for me, so I went looking!

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

I found it through a local investor that I was introduced to, and purchased through a wholesaler that he had worked with in the past. I offered asking price on the deal, because the numbers made sense and the property had a lot of interested bidders.

How did you finance this deal?

Private money using the BRRRR method.

How did you add value to the deal?

Rehabbed one of the two units completely:
- Sand and Stained Original Harwood Floors
- Paint from ceiling to base trim
- New Oven
- New Toilet, Vanity, Sink, and Medicine Cabinet
- Built Shelving in closets
- Deep cleaned exterior and fixed areas of vinyl siding that needed to be replaced
- Stained decks
- Formed off street parking

What was the outcome?

I still live in one unit and rent out the other. A couple unexpected things have come up, but I am still very happy with my investment.

Lessons learned? Challenges?

I learned the value of working with good people around your home. I had cheaped out on a couple things in the beginning either by hiring the cheapest bid, or trying to do it myself. Ended up having to get a professional in to re-do a few of those things, which added time and holding costs.