All Forum Posts by: Pat Lulewicz

Just like @Lacy Tilley I didn't do one in the triangle, mine was Chicago suburbs, but I would recommend taking advantage of that first month you don't need to pay a mortgage, not living in the property while you gut or do the major/messy work, and rent or live with friends/family. Avoid the dusk, potentially lack of water or electricity, and overall mess that that part of the project is...especially in the summer. 

Since I had immense amounts of dusk during mine, I didn't run the A/C, so I lived in the basement of my house while i gutted the entire first floor of my live-and-flip. Had 4 fans pointed at my bed...do yourself a favor and make it easier.

Hey John - you may find it challenging to get many good deals in the multifamily area in Raleigh. A lot of good SFH and condo's though. Nevertheless always open to grab coffee and ride around the area. As far as attractions/food - shoot me a PM regarding what you (and the little guy) like to eat, and I'd be happy to help!

This is incredible. And my analytical brain loved the numbers associated with the projects. Truly exemplifies the "If you can't find a deal, make a deal" mindset that Bigger Pockets is all about. Love the journey so far, and know that you and your wife will do BIG things. Congrats on the success!

Hey Josh - thank you for organizing. I plan to be there. And not that they'll need it, but always a chance for a Game 7 that night!

Kurt - To #1 and #2, being 4 years into my career in public accounting, I'd say get the education or certifications if it'll actually improve your marketability or have some career upside. Also make sure its something you actually enjoy or is fun for you to keep working towards, or else it could end up becoming irrelevant for you in 2-3 years if you don't enjoy the type of career it would lead it.

Still #s 1 and 2 - I was an accounting major and passed on grad school as I was able to sit for the CPA and that's all that mattered. Further education would have just been to get the hours to qualify for the CPA, which I didn't need. It gave me an extra year of income which is crucial when it comes to securing financing given our age and low net worth/liquidity (both assumptions based on age).

#3 - regardless of if you stay in school or not, start/keep networking hard. Go to all the open houses and all the investor meet-ups. If you really want to get into real estate, the first deal will always be the hardest because of financial security and not wanting to mess up, so save as much as you can and do as much research as you can so that the decision isn't as intimidating from both perspectives.

Would love to connect whenever you're in or around Raleigh!

Monthly rents in this condo complex are $1,000-$1,100, depend on if we find 4 tenants and rent the unit ($1k) or just rent per bed ($1.1k). I've fallen in love with 4BR condos the more I analyze them across the country in college towns!

Yup! Property #2 has an investment summary on my profile. Property #3 (similar to #1) should close within a month!

@Nate Shields Moved to North Carolina in November, 2018 and currently in-process of closing on a 4BR/4BA student rental condo. Slowly trying to build an empire across state lines.

Investment Info:

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

Purchase price: $85,000
Cash invested: $21,250

Duplex located in Dekalb, IL. Second purchase made (1 month after purchasing first rental) with 100% occupancy. Wonderful long-term tenants and the property was in great shape given the age and amount of individuals residing in it.

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

A duplex at this cost was a wonderful cash flow opportunity. Already occupied so didn't have to advertise. Simply purchase, introduce myself to tenants, and collect rent.

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

MLS - minimum price negotiation.

How did you finance this deal?

Given that it was a single-family, there were no issues with getting conventional loan financing on it, through a mortgage originator.

How did you add value to the deal?

Self-managed to maximize cash flow. Replaced a heater prior to winter given its age. 1 tenant mowed the lawn for minimal rent reduction, so purchased him a new lawnmower to replace his old one.

What was the outcome?

Wonderful 20%+ returns annualized. We will have to replace windows on the first floor in the current year which will eat into profits, however annualized, the returns will still be strong, and all tenants are happy.

Lessons learned? Challenges?

With old homes, set aside money for CapEx and fit it before you need to. Once something starts giving you problems, take care of it before it rears its ugly head!

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

Bob Ashbrook - Inspector - incredibly thorough - western suburbs of Chicago and into North-Central IL

Investment Info:

Single-family residence buy & hold investment in Dekalb.

Purchase price: $72,500
Cash invested: $14,500

First rental property purchased. Rental property for NIU students.

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

Wonderful cash flow and a way to break into real estate investing without too large of a capital/equity investment.

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

MLS - We made an offer, and went back and forth until we agreed on the purchase price listed.

How did you finance this deal?

Condo complex was 100% NOO so I called around to a number of small, local Banks, and chose the one that was able to service it at the lowest rate.

How did you add value to the deal?

Immediately brought in tenants for the subsequent school year. Served as property management to maximize cash flows. Between tenants, did a lot of repairs, replacement of fridge, and maintenance that appeared to be ignored from prior owner.

What was the outcome?

Great cash flowing investment property. Current tenants are sticking around for next school year and we couldn't be happier.

Lessons learned? Challenges?

Being the first deal, just had to get over the initial fear of jumping in. Learned EVERYTHING along the way as this was before I started listening to podcasts and researching everything. Like getting tattoos, this got me hooked.

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

Property inspector - primarily western chicago suburbs - Bob Ashbrook - very thorough guy and extremely flexible.