All Forum Posts by: Maria S.

Investment Info:

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

Purchase price: $150,000

Cash invested: $30,000

Duplex within walking distance from KU Med. Purchased from a former landlord. My husband’s contracting company is rehabbing the project. He converted the one bedroom/unit to a two bedroom and added stackable W&D units in each unit.
Rents in the area for a 2/1 are going for $1175-1350...going to test at higher end then move towards a median rental price.

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

Location. Walking distance to a major university hospital.

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

Landlord called my husband to paint it but then he didn’t want to put any more money into this rental and sold to us. He agreed to sell it if we allowed him to keep his Jeep in the garage for 3 months

How did you finance this deal?

Conventional 30 year.
I did a Cash out Refi on our primary residence to put 20% down.
Husband’s Construction company has business lines of credit to fund the rehab. I hired his construction company to do the rehab. He in turn provides super itemized invoice to document labor and materials.

How did you add value to the deal?

Converted from one bedroom units to two bedroom units and added stackable W&Ds.

What was the outcome?

About to put on rental market. Will REFI next quarter ARV comps are $325,000

Lessons learned? Challenges?

100 year old stained glass windows well for $$$$

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

Flat Branch Mortgage

#GOALS

I know that For me, goals don’t make me happy, however making progress towards achieving them does!  

What are your best practices you have on creating a good vision? Is there an app you use to hold yourself accountable? 

@davidfaulkner thank you for the information!

For those of us committed to the buy and hold approach. Frothy markets make it tempting to sell! I would love to indulge with a milk mustache and take my profits to the bank and wait for the next recession to hit but is it a smart move?

What strategies work for you?

Thanks! @Christian Bors

The best way to learn is to jump in and figure it out as I go...right? My goal is to get into Multifamily this year.  I have four conventional loans and now what is the next step in the acquisition process? What is the best approach for commercial loans? Also, I LOVE the TOOLS to help analyze my deals. I intend on printing out my analysis and take it to the bank.

Great feedback. What are the best websites to validate local rent rates? Zillow? Other suggestion...

I like the tough advise! Let me put it this way...I have been an unintentional landlord and then I ran into Brandon and Josh on a little Podcast that Flipped the light switch to Intentional Landlord/Real estate investor. Let's do this! Since listening 4 months ago, I have closed on two additional properties. Time to get serious about this investing!

***think AA meeting*** Hi my name is Maria and I am guilty of being a softy landlord. First step to recovery is recognition right?  How often do I raise rents? I have been used to renting during the recession. I have failed to raise rents on the tenants that scored my homes during the down economy...Any advise?