All Forum Posts by: Nick Atwood

To jump into this thread, Albany is a great market for rentals as the prices are still competitive but that's quickly changing, I own a couple properties in that area that have had a great rental history. I've also worked with multiple investors in Albany and the surrounding cities. Feel free to reach out for more information. Nick Atwood - Atwood Realty. 

Investment Info:

Other buy & hold investment in Gaston.

Purchase price: $650,000
Cash invested: $75,000

11 Unit Mixed Use Property. 3 retail units on the lower level, and 8 apartments mostly on the upper level.

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

The price was right, I was able to come into the deal with barely more than 10% down with a seller carried contract in place.

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

I found this deal as an expired listing, and contacted the owner by reaching out to one of the tenants for the owner information.

How did you finance this deal?

I financed this deal for the first year on an owner carried contract, and then cash out refi with a conventional lender.

How did you add value to the deal?

I added value by remodeling here and there. There were only 10 units originally, and I added an 11th by using existing plumbing/rooms in place. All the rents were below market, and I've raised them all.

What was the outcome?

The outcome was owning a property that has more than doubled in value.

Lessons learned? Challenges?

The roof was a big undertaking, but by shopping around I was able to find someone who did it for 1/4 of the average price, and came with a 10 year warranty.

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

I represented myself in the deal, and negotiated a large repair credit to help cover some of the initial expenses including the roof.

Investment Info:

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

Purchase price: $310,000
Cash invested: $20,000

Purchased this property with an FHA loan back in 2015 3.5% down. Spent less than 20k to close the deal, and lived there the first year rent free, since the other 3 units more than covered the mortgage. Then 5 years later, with remodeled units I've raised the rents from about $750 to $1000 a month. The property appraised at almost double the price 600k. It's generating greater than a 50% cash on cash return annually. I've also used a cash out refi to purchase another investment property.

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

This was outside of the expensive PDX metro market, rents were higher proportionally than elsewhere, so the cash flow potential was a lot higher.

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

I found this deal online, it was posted on the RMLS. I negotiated it down a little before contract, and during inspections.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

I slowly remodeled the property with funds from the cash flow.

What was the outcome?

The outcome was that I have a $2200 mortgage payment, utilities are minimal (

Lessons learned? Challenges?

I learned that there was a shared driveway that I owned, so I was able to make some money off a revocable easement. There were some headache repairs such as a plumbing leak that had been there for a while, some roof issues, and poor bathroom fans that contributed to common mold in our area.

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

I worked with Minuteman Mortgage on this deal. We were in a time crunch, and he closed the loan super quick.

I did a bunch of research locally in the PDX metro area years ago. The best savings that I came across was HomeSmart. $550 or so transaction fee, and a $50 a month desk fee which covers their software and utilities. I'm in the process of becoming a principal broker and opening a local office. I got my license as well primarily just for my own investments and it has blossomed into a larger scope. Starting my own office I'd have a similar per transaction cost. The splits/caps of larger RE companies feel too much like a pyramid scheme to me. 

 You’re right those two statements didn’t gel, at first the buyers agent said they wanted me to cover all the costs, then the buyer called me later saying, he’s willing to split the maintenance costs with me. I should’ve mentioned that. My attorney hasn’t done much of any work yet because he was never paid. Seller decided to NOT fork over the $500 retainer. But my attorney did give me some free advice over the phone is all.

I’m not granting an easement? An easement is permanent to the property and tied to the title. I’m granting a renewable license/lease similar to how you were to lease an apartment. The owner still has the rights and authority to cancel the lease if necessary. The document won’t be officially recorded with the county or tied to the title. It will be unofficial between neighbors. The new buyer has already mentioned he’s willing to split maintenance costs for that portion and will sign an agreement that eliminates all my risks. Hope I’m not missing something here. 

As an update for anyone interested. We decided we’d offer an option for a revocable lease, or license where we still have control, and a $250 yearly lease/license fee to cover maintenance, liability indemnity clause, no parking, no damage, etc And can be renewed every so often. The buyers ok with it looking to move forward. We decided on the $250 because that portion of the driveway will be $2000 every 4 years to have the asphalt sealed. It’s currently due for repair now, but the current seller doesn’t want to pony up and pay half of that $2000 now even though he’s been putting the wear on it for years. And that’s the only hang up. The buyers are really wanting me to forget about this $1000, and just pay the entire cost myself. Why does everyone want so much from me right now? Am I not being fair? I feel like I’m offering everyone more than I should be.

 It's in Oregon unfortunately. :/ Would like to cross collaterize/conduit if possible, with less than 20% down. Wish I was in another state for you. 

Knowing this neighbor, and how he said if he had to pay for a $1500 survey he probably wouldn't get the easement. I don't think he's willing to pay much. But they are motivated to sell the place since theyre contingent on another purchase where they are moving to. He also told me even if the sell falls through and he stays he still really wants the easement. 

All my tenants stay on my property, the never go off the driveway onto his lot. I could put up a fence, but he'd definitely be angry with me. He even put up a gate along his property line off our driveway just within the last couple weeks as well.