All Forum Posts by: Mark Updegraff

Done here too!  Not sexy at all, but super fun to create :D

Kudos to @Joshua Dorkin and the BP gang.  Way to beat the big guys to the punch!

Cheers,

Mark

Thanks everyone!  These were all deals where I represented either the buyer or seller of a 1-4 unit property.  

I'm still working on my fist two developments currently.  They've ended up being quite drawn out, but I think that is pretty much on par for the course.

Hey Jesse,

    Post some of these golden opportunities and we will critique them!  A lot of seller marketing over exaggerates the numbers.  It is imperative to do your own due diligence and not rely on analysis provided by sellers or their agents.

Thanks @Arlan Potter we're definitely looking to hit the top of the market.  The 4th bedroom is key, as is the condition.  The wood moldings / detail work is really really nice.  This house was in the same family for over 60 years and it really shows.  If the house were more in line with a typical rental property condition we would be looking at 1050-1100.  This one shines in comparison so we do get a premium for that.  I'll update the thread with the actual rental rate when we sign an agreement.

Plus they typically don't sell for such a discount, hence why I scooped it up before it became a multi offer getting pushed past list.

You're high on your ARV. This would not even fetch 120k in a good market. See MLS#: R232877

58 days on market

over 200 sq ft bigger 

2 car garage

also has features this one is lacking (deck, updated kitchen, newer furnace)

closed January 2014

47 Transactions:

44.7% of all closed transactions where the result of leads generated through BP!

Many thanks to @Joshua Dorkin and his team for their countless hours building the premier site for RE investing.  Congratulations on your 10 year anniversary!  I always look forward to traveling for the holidays as I get to cram in 4 podcasts on our 400 miles of travel.  Thanks for reminding me to publish some success stories, and I look forward to reading those from others!!  

IMO, the absolute best investment you can make in your RE investment future, is the Bigger Pockets Pro membership!!!

Happy Holidays to all!

Sincerely,

Mark Updegraff

Sometimes things work out when you're diligent and swift to act.  I don't acquire a ton of properties probably averaging a few units per year.  Here is the skinny on the one I just closed.

MLS listing 44,900, acquired at full price no contingency

assessed value 63,000

4 bed 1 bath built 1920

1286 Sq ft 4 bed 1 bath

Hardwood floors and oak moldings (unpainted throughout)

New vinyl windows 2nd Floor

New tear off roof 1 yr old.

New vinyl siding not very old.

Off street parking

Location is in the path of progress (less than 1 mile from Rochester's #1 employer)

Screening tenants at 1200 / month, with current applicants.

Pro forma:

gross rent yearly = 14,400

less 35% (10%PM, 10% Vacancy Reserve, 10% Capital Reserve, 5% Repair Reserve)

= $9360

minus operating costs (2246 taxes, 600 insurance) = 6514

cash on all cash return = 14.5%

That is only available for owner occupant offers for the first 15 days. That period is not over yet, and when it is it will be available for investors if a OO did not purchase it. It needs a lot of work, but it is a sound investment if you're able to pull of the renovation quickly and get it leased up quickly. I would be happy to help you find a cash flowing property in ROC. We're seeing ROI on cash of 10-13% but those deals sell to active investors quickly. You will need a solid REALTOR to take those down, especially in areas that are appreciating.

Yea, the head of the investment group here seems pretty close to your average.  I thought for sure the "investors" would have way more experience, but it really just isn't the case.  The big players quickly work themselves into alternative investments that are still RE but not the same things that everyone gets gooey eyed over.  The real investors understand opportunity and hence can take advantage of it. The "investors" are still learning what opportunity is.

here is the Rochester's 10/21 list:

22 E Main St Webster 14580 10/21/2014 10:30 AM Woods Oviatt Gilman LLP $3,417,535.51