All Forum Posts by: Henry R.

@Eric Levy, Do what you can to improve the property for now. Check rentometer to see what the area rentals are going for similar to yours. When you do rent it, I would set up the leases so they all end in the warmer months ( this is what we do) that way when you do have a vacancy you are more likely to rent it sooner and no cost to heat when warm out.

And as @Cassi Justiz mention pictures are very important, bright, clean and staged always works well. All the best! 

@Account Closed

You were wise in not giving any money up front. Thanks for sharing it gives us all a reminder to be on guard all the time.

@Brandon Turner How would you go about negotiating with a HML if you wanted to pay at the end of a deal and they wanted monthly payments? For a rental or a flip.

Thanks!

HI @Shamus Wheeler,it can be very hard to make money on just 4 units when you have to pay upwards of 8-10% to a management company. That's not to say that's your case. We have a 3 unit, our tenants pay online only, so  going to a mailbox or picking up the rent is eliminated.  We contact the plumber or electrician, etc by phone and they go over for any repairs if needed. The place we have has been renovated so problems have been minimized.

I say automate as much as possible find a handyman/contractor and a lock box so there are keys handy and as long as your tenants our home or OK with the contractor being in the apartment you won't have to let anyone in.

All the best

Hi @Account Closed,

We use the program Cozy.co, I'm sure you may have seen it on here already but we are happy with it. Cozy sends you an email as soon as the payments starts. The tenants like it it's easy to set up and easy to use also. There are many programs out there this one works well for us.

Thanks @Victor Viypuh

@Danielle McClelland, Hello, I bought my first 2 family at 25 but it was not as an investor. I then bought my first single family house years later and kept the 2 family for a while, however I didn't start investing until I was in my 50's. LOL I remember my dad telling me when I started working for the company I work for now at 21, " If I was your age I would buy all the houses the bank would let me have". My dad did have rentals, and they only reason I didn't do it back then was I was young, scared, didn't make that much money or took the time to read up about it. I believed him, but let lack of know how and "fear" stop me then. And I didn't stumble onto bigger pockets back then, because well they didn't exists..lol.

You are young still, go for it big time! Remember what rich dad poor dad said, not I can't but how can I! Age is what you make it, no one can ever guess my age so if you feel young (and in your case you are) do it! You have all the info you need right here on BP!

All the best!

Investment Info:

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

Purchase price: $69,000
Cash invested: $16,000

We bought this 3 unit in foreclosure. We used private money to purchase and rehab took 9 months, got it up and running in spring of 2017 and so far it's been good.
It's a large 2 bedroom flat 2ndFL with two 1 bedrooms on the first floor. Off street parking and a back yard. We were all in at
112K it appraised at 161K, however we took it at 140K.

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

The location, price and the fact that we were able to add value

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

On the MLS, made offer to the bank, first asking price 105K 2nd asking price 89K, offered 65k they accepted 69K

How did you finance this deal?

First, private money, then a regular loan to an LLC

How did you add value to the deal?

Rehabbing the entire building, bathrooms, kitchens 2 of the units were pretty good, plumbing electric, painting, etc.

What was the outcome?

Unit is up and running doing well

Lessons learned? Challenges?

I wished I got it even cheaper (33.5%) discount. Work completed sooner. There are always hidden items to repair.

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

My Wife Marie (agent) Sunmark FCU

@Jason D. Hi Jason thanks for the reply and the info I appreciate it

@Lee Ripma thanks for the info so far the guy has not email or called me back since my wife and I asked a little about his back ground.