All Forum Posts by: Morgan MacGregor

@Jason Bailey I'm familiar. Thanks

@Scott Emsley @Braden Burton I would love meet up. I'm currently in Gunnison, looking to invest in Fruita or Junction. Scott, I have a multifamily in Ohio. If you're interested in my experience with it let me know.

you guys sure know how to hijack a post...

Thanks @Bob Vollmer! "Hope for the Best, Plan for the Worst" words to live by for sure! Thanks for the advice. I'm in Gunnison but I think Junction is looking like the best market for me. Keep me posted on a meet up I'd love to meet up with some other folks.

Thanks for the reply Dan! I included 5% vacancy. No PM though, as I am from the area, I have a lot of boots on the ground there including my agent who is also a successful REI and owns a number of similar properties in similar areas nearby. I also have a GC who I've known since I was 12 and numerous other people in my network whom I can turn to. I actually find your opinions on maintenance... cynical. Unless you assume that I have not done due diligence by speaking at length to the inspector and current owner about the major systems and condition of the house, I feel the percentage of income set aside for Maintenance and Repair is conservative. I have also set aside 6k for anything unexpected as far as vacancy or immediate expenditures.

Thanks Robert! Yes, that is a concern. That's why I'm budgeting so much for Maintenance and Repairs. Though, nothing came up in the inspection, I am fully aware that there could be skeletons in the closet or pipes in this case.

Hi BP Fam! 

I am an investor originally from Northwest Ohio but have spent the last 10 years travelling the Mountain West working as a Park Ranger and Endangered Fish Field Technician. Currently living in Western Colorado. I have been educating myself relentlessly since I got the REI bug. I have a 14mo old daughter and supportive partner who are the main reason that I am immersing myself in Real Estate. I'm seeking passive income to spend more time with them and am building wealth so that we can all live the lives we dream about. Well all that education and all the dreaming are finally starting to take shape. I'm excited to say that I will be closing on my first deal next week! It's a Triplex in... wait for it... Hicksville Ohio! Maybe not as sexy as San Diego or Miami Beach but I found what I hope will be a low maintenance property in an area with demand for multifamily housing with long term renters(year leases) that will cash flow. Here are the numbers:

LP: 89,000  SP: 85,500 w 2k concessions  Appraisal: 86,000  

Ins: 857/yr  Tax: 1220/yr Maintenance/CapEx: 4,000/yr (The house was built in 1900 so I am trying to be conservative with saving for maintenance and Cap Ex) Lawn & Snow: discounted rent for one tenant figured into rental income. Tenants pay all Utilities

Rental Income: 1260 (1300 = market)

With these numbers, I am cash flowing at $350/mo. It would be cash flowing $700+ without saving for maintenance but those big ticket items that are sure to come up in the next 5 to 10 years or so.

Since it's my first deal, I still feel like I'm way out of my depth even after researching so much. I did have a concern when I went through the cold feet phase of being under contract. I was worried that I wasn't using my capital wisely. I am financing with a conventional 30yr loan at 25% down and 4.875% This ties up at least 24k of my available cash. However, I have talked to some lenders who are willing to do a portfolio loan so I am now looking at what I can do to invest the rest of my cash here in Western Colorado.

One thing that I have experienced in this process is that my strategy is evolving the more I learn about real estate and hear and read about the amazing things people are doing; the more I am thinking more 3 dimensionally about financing as well as mixing different strategies to suite my skill set and means. So far, I am loving Real Estate Investing! Hopefully, that continues to grow along with my wealth. Thanks all!