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All Forum Posts by: Chris Long

Chris Long has started 5 posts and replied 14 times.

Post: Daytona Beach rental

Chris LongPosted
  • Rental Property Investor
  • Lakewood, CO
  • Posts 14
  • Votes 3

Nice! I'm hoping to invest in this area in the next year.

Post: Property management company

Chris LongPosted
  • Rental Property Investor
  • Lakewood, CO
  • Posts 14
  • Votes 3

I purchased a property that closed on April 10. I talked to Great Jones maybe on the 5th before that. I was hoping to have them ready to go on the 10th in case the current tenant had any problems. 

Unfortunately they weren't ready to go then. They assigned a property manager to me. I gave him information about the previous property management company and the contact information for the 2 tenants. He said he was on it. 

On April 16 I was notified that I needed to install hand rails on the front steps or they would cancel the policy. I was out of the country and I wasn't sure who to call for that so I waited until I got back and called Great Jones on maybe the 16th or 17th. They said they could set that up no problem. 

A week later or so and I still hadn't heard back from them so I called. It turns out that they fired my property manager and they still hadn't done anything about getting the lease or preparing to manage the property or anything about the hand rails. They got someone to go out to the property and provide a quote for the hand rails but didn't call me back to approve the quote. I called them on the 26th and they told me they were waiting for me to approve the quote. I approved it immediately. They didn't say when the work would be done.

I called again today, the 29th, because I still hadn't heard from them. They said someone would be installing the hand rails later today. I asked if they had made contact with the tenants yet and they said no. They called me back a little while later and were able to get the lease, I think, from the old property management company. They said they tried to call the tenants but the contact information was not correct. I gave them the contact information that I had already given them before and they indicated that it was different than the information they received from the old property manager. 

I hope to hear back from them tomorrow and learn that the hand rails are completed and they were able to get in touch with the tenants and are able to collect the rent that will be due in 2 days from now. 

They have also not updated anything on the owner's portal of their website. I don't know what's happening at Great Jones but I'm not too impressed so far. This is my first time working with a property manager so maybe this is the normal experience. I hope they improve but I am considering other options if they don't.

Another note; they are always very friendly on the phone. 

As I was typing this they called me back again. It was my temporary property manager and different than the person I spoke to earlier today. He gave me the same information as the person before and still didn't have the correct information for the tenants. I gave it to him and he said he was going to call right away. 

I guess we'll see what happens. I hope I don't have to manage the managers. I'm looking forward to smooth sailing after this. 

Post: My First Investment Of Many (I Hope)

Chris LongPosted
  • Rental Property Investor
  • Lakewood, CO
  • Posts 14
  • Votes 3

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $47,900

My first investment. 2/1 SFR. In the process of purchasing from wholesale and some trouble matching up a loan due to the low cost and the wholesale status.

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

I'm hoping to build up my passive income and be able to leave my job one day. There is a renter already in place at this property so it will be cash flow positive from day 1.

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

I worked with Liana Rodriguez who sent this property to my email. I visited the area and looked at a bunch of houses. I decided to purchase this one as the cost was low and hopefully will minimize the seriousness of my potential first timer mistakes.

How did you finance this deal?

I'm still working that out. I am approved for a hard money loan of $30k with 12% and 3 points. I'm considering paying cash and then financing a few months down the road.

Lessons learned? Challenges?

Loans under 50k are challenging. I didn't know what wholesale houses were before.

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

Liana Rodriguez has been helping me. I found her on this site.

Post: Funding options for a first time buy and hold investment

Chris LongPosted
  • Rental Property Investor
  • Lakewood, CO
  • Posts 14
  • Votes 3

Hello everyone,

I just got started on this journey and I have been reading and studying for a few months. I chose a location and a first investment property from a wholesaler. I live in Colorado but chose the Orlando to Tampa area to invest. 

The property I chose is relatively inexpensive which I thought would be great for the first time to minimize the risks in my learning curve. Unfortunately this did make obtaining a loan more difficult. I was preapproved for up to 200k but my property was less than 50k and with a 20% down payment the loan value was just too small for a normal lender. I almost have enough cash to pay for the property outright but I was hoping to use that cash for a BRRRR on a second home.

The home is a small 2/1 SFR. A renter is already in place paying 750/mo and just signed a new, year lease. $47,900 is the agreed price of the house and I have put down a $3000 deposit and signed paperwork for it.

So my options as I see them are these:

1. I was approved for a loan from a hard money lender with unappealing terms. 12%, 4 points, 12 months before I need to extend the loan or refinance. The loan amount would be $30,000.

2. I take a loan out on my vehicle and get $29,000. The rate would probably be around 5% with a term of 5 or 6 years. I would operate the house at a small loss during the loan period but then I would own the house after the loan was paid off. 

3. I find a private investor who is willing to part with $30,000 for a longer term and hopefully a good interest rate for us both.

4. I borrow a few thousand from a friend or family member and pay cash for the house. This would give me the highest passive income per month but would tie up my cash and complicate investing in another house.

So those are my options as I see them. I have attached a link for the buy and hold analysis that is built paying cash for the property. I would appreciate any advice or comments.