All Forum Posts by: Michael Dengler

Investment Info:

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

Purchase price: $85,000
Cash invested: $8,700

I used an FHA 203k loan to purchase and rehab a duplex which I plan on renting and house hacking/Air B&B the other unit.

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

I was looking to stop throwing $ away to rent and as a single father couldn't afford to purchase a single family home on my own with one income.

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

I found the deal on the MLS and my realtor helped me negotiate.

How did you finance this deal?

203k Loan

How did you add value to the deal?

I put $90k of rehab into the property.

What was the outcome?

Still to come.....

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

Yes I'd highly recommend my Realtor and contractor

I actually am in the process and have almost completed the rehab of my duplex that I purchased with an FHA 203k loan(construction). I only had to put 3.5% down. I was lucky to get a good contractor who was experienced dealing with these loans. The contractor needs to be licensed and patient as most likely the lender will make him jump through hoops to get his draws in a timely fashion. I would highly recommend using the Fha 203k loan for your first house hack on a duplex or triplex. Good luck.

Mike

I got my first offer accepted yesterday on a bank owned property. My agent sent me the contract docs which I esigned right back to him. I also got the earnest money deposit the bank required and took a picture of it for them before I mailed it per their request. This morning I get a call from my agent telling me the bank has another offer on the table better then mine. I asked how that could be since they already agreed on a deal. He told me this happens a lot and they can technically still negotiate before they actually sign the contract and send back. Does anyone have experience with this? Seems shady and unethical from a bank. Especially since the property has been on market for 100 days.

Mike

Thank you for the reply guys!

I just got my first small multi unit property under contract. It's a duplex that I am going to berenting both units out. I was hoping I could get some feedback on if I should consider getting an LLC. Any suggestions would be appreciated.

Regards,

Mike

Byran,

I did read that as well. I will keep that in the back of my mind. Thank you for the reply!

Mike

Zach

Thank you for the reply. My goal is to live in the property for at least 6-12 months depending on refinancing rules. After that I would like to hold for cash flow and buy my next multi shortly after the refinance. I have no plans of flipping any property. I would like to build a portfolio of small multi families and eventually a large complex. I hope this helps.

Regards

Mike 

I am a new investor looking to break into small multi family investing in the south jersey/philadelphia area. My first property is going to be an owner occupied deal and I think I want to implement the brrrr strategy to get me started. I already started working with a local realtor that is starting to send me properties that meet my criteria. This may change as I get immersed into the process but here is what I have starting out:

2-4 Units

Light to moderate rehab(no turn keys)

I need at least one open unit if I am going FHA owner occupied on the deal

150k and under asking price

Properties that are either brand new listings or properties that have been on mls for over 60 days or expired listings

I am using the spreadsheet I downloaded off BP for the owner occupied calculator

Here is my questions:

I have some light knowledge of what flippers are looking for on properties they pick up: 70% ltv of arv-minus repair cost.

I was told that may differ when looking for a multi unit? When I watch the Brrr and rental videos I don't hear much about buying at 70%. Its mostly about Cap Rate and ROI.

The goal is to obviously buy at a discount, add some value to the property so I can cash out refi and buy my next property. How do I make sure I have enough equity cushion when I buy so I am not soley relying on my rehab adding enough value to allow me to take cash out after 6 months to a year?

Would you recommend going FHA with the 203 B construction loan or buying off a wholesaler at a big discount and refinancing conventionally after the rehab?

Finally for a Brrrr is it easy to find a property that is vacant of all units to rehab or try finding one that has at least one unit occupied so I am getting some income during the rehab?

Thank you

Mike

South Jersey/Philly