All Forum Posts by: Nick Paquet

Investment Info:

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

Purchase price: $175,000
Cash invested: $45,000

Duplex on the West side of Grand Rapids just off Bridge Street. Fully renovated the downstairs unit while maintaining tenants upstairs. Once, fully renovated, expected to cashflow at $1,600/mo.

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

Was able to house hack this duplex. With existing tenants in one unit, it made it a lot more affordable in the short term.

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

MLS.

How did you finance this deal?

15% down conventional financing. Used Private money to renovate.

How did you add value to the deal?

The only entrance to the downstairs bathroom was through a bedroom. I moved the door to come through the living room. Completely gutted the kitchen and bathroom.

What was the outcome?

Downstairs unit (3 bed 1 bath) rents for $1,500/month.

Lessons learned? Challenges?

Had a blast renovating and would love to do more!

@John Lanser

I highly recommend TenantCloud, especially if you plan to grow. $9/mo (for the standard package) is totally worth all the features it provides.

It directly deposits money to your bank and even will disperse payments if you have partners with equity. Easy to use for tenants. Easy to adjust rent payments or add in fees for pets, damage, etc.

The best part to me, is tenants can esign the leases. No need for docusign (Who has a printer these days)!

@Chad Lanting if you are interested in investing in more properties in Grand Rapids, I would love to connect!

@Kyle Palacios

The west side of GR is growing rapidly. As more and more Grand Valley students are choosing to live near the downtown campus, many businesses and investors are following. If college age and young adults are your target renters, this would be a great place to look.

Most of the family neighborhoods are seeing house prices skyrocketing. The best way to get a house in Grand Rapids under 100k would be off the market or through a wholesaler.

Muskegon would be the next city I would invest in outside on Grand Rapids. Prices are low and there is a lot of potential for growth.

If you have any questions about property managers or contractors in the area feel free to message me!

Nick

Evan, 

My mistake. I was missing a digit in the total invested! I update the post. Still a fantastic deal we were able to fund with a conventional mortgage at less than 20% down

@Charles Kao 

I didn't factor in CAPEX in the cashflow for this specific property because we replaced all items that would fall under the category other than the furnace and water heater, which were brand new when we purchased the house. We have an emergency fund in place for any unforeseen needs. We don't plan to keep this property through the life of most CAPEX items. This was a good property to get started with a house hack, but not a desirable location for a long term buy and hold.

We estimate vacancy at 8%, which has been consistent so far. 

I manage the property, so that is not an expense.

Investment Info:

Single-family residence buy & hold investment in Grand Rapids.

Purchase price: $200,000
Cash invested: $10,000

6 Bed 2.5 bath Victorian home

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

This deal was my foot in the door to real estate investing. Low money down and immediate cashflow made it possible.

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

MLS

How did you finance this deal?

The deal was financed with a traditional mortgage. Our lender allowed us to put only 5% down on a conventional loan.

What was the outcome?

The property is cash flowing at $1000/mo

Lessons learned? Challenges?

Old houses need a lot of care. Finding long-term tenants is very valuable.

Investment Info:

Single-family residence buy & hold investment in Grand Rapids.

Purchase price: $175,000
Cash invested: $2,000

Across the Street from John Ball Zoo and Grand Valley Downtown Campus made this property too good to pass up.

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

Location, Location, Location. Simple DIY projects (did not have to pay any contractors).

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

MLS

How did you finance this deal?

Traditional Bank Financing

Investment Info:

Single-family residence buy & hold investment in Grand Rapids.

Purchase price: $175,000
Cash invested: $2,000

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

Location, Location, Location. Simple DIY projects (did not have to pay any contractors).

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

MLS

How did you finance this deal?

Traditional Bank Financing