All Forum Posts by: Jacob Murphy

@Kevin May I have gone to spring valley bank 3 times for different properties and every time they have strung me along for 3-4 weeks just to tell me either they just don't like the property (weird to not like a 75K value single family property rented at $925/month), or they will offer a refinance at 50% max of LTV.

Has this been your experience? Were you able to get better terms? It is really hard to grow when you can only get 50% LTV.

@Garrett Kaiser I would call Jerry Mueller at Community Savings Bank way out in bethel, ohio. I have done 3 loans with them already. Everytime it was a BRRRR that I got the paperwork started as I was finishing up the rehab. They will do a loan as soon as you have the property complete and have a signed lease (huge advantage not waiting for them to move in).

Loan terms I get:

I believe 1.5 origination points. 

Appraisal $450

Loan Fee is around $300-400

15 to 25 year amoritization. 

Aroud 6.25% interest Rate depending on prime

Loan held in an LLC since it is commercial but you are the loan guarantor

PM me if you want his contact info!

@Kristina Murray welcome to the queen city! I think most neighborhoods in cincinnati are improving at the moment so plenty of opportunity. As you may know already, Cincinnati is very street to street so a boots on the ground opinion is essential. If you have any questions on specific areas of town ask away! I am a general contractor for investors looking to do the BRRRR strategy in Cincinnati. I am most familiar with East Price Hill, Lockland, Reading, Pleasant Ridge, Green Township, Bridgetown, Cheviot, and Wyoming.

Also be sure to go to the local mastermind Joe Fairless holds. PM me if you want more details on that!

@Dean Klein 

I am in my twenties and have a triplex with the same problem. The second I had a bad tenant leave 90% of the stress I felt was gone even though I have 15 units I self manage. It is amazing how 1 person can ruin your day. I say give him a call but also post on his door that you want to update the unit and increase rent. This will be you taking a step and he will start to negotiate with you from there asking if he can stay another 6 months. Now you are in control, tell him he can have 5 months. At that 5 month mark he will probably be asking if he can stay longer, which can work but the important thing is that he realizes you have the power to kick him out and he will start to be easier to work with.

First of all, good luck because you will learn a ton if you go this route. I would recommend getting a freelance architect who is experienced with this kind of work to streamline you through the building department and permit inspections. That has absolutely been the worst part for me in real estate! I can't stand being held up by government. 

Now as for considerations of how you do the rehab, you might as well do it right the first time and make everything separate to keep more cash flow in your pocket and increase the value on sale at some point in the future.

1. Electric: I recommend doing separate electric panels for each unit. Plan on no gas lines at all in the building. Install separate electric hot water heaters. If you are a nice landlord you can buy the heat pump units to lower the cost to the tenants and they also last much longer.

2. HVAC: Install HVAC Ductless Mini Split systems for each unit. Mini splits are amazing because you avoid running ductwork through the walls and ceilings, huge time saver. They do both heat and A/C so the tenant is now paying for all HVAC needs. 

3. Plumbing: I would plumb the units with Pex supply lines because they are much more likely not to burst if they freeze. Install them so that you can submeter the water usage and back charge the tenants if you so choose to do so. 

4. Cabinets: Install all wood cabinets. Place a water alarm under every sink.

5. Flooring: Do it so you never have to fix them again. If there is already hardwood, refinish with 3 coats of polyurethae. Anything else I would buy 4.5mm thick LVT wood plank flooring (about $2.25/sq ft at home depot). It is waterproof and will last 15 years of tenant abuse.

Sounds like you have an amazing property, I would hold on to that puppy as long as I could unless there is a much larger multi unit property you are going to 1031 exchange to. And even then I would only do it if it is an off market property that you absolutely know you can close on without competition from other buyers.

@Thaha Mirza To me all I am hearing is opportunity to get the triplex at a great deal. If everyone who views the property is worried about the resale then you should be able to get it at a great deal! Offer the lowest you think the property could ever sell for and the worst they can say is no!

@Lewis Hunter I've heard great things from several trusted investor friends about @Zach F. I personally prefer the smaller companies who are focused on building great relationships with investors! If you need his phone number send me a PM

@Dennis Johnson I highly recommend listening to the 8 part podcast series @Theo Hicks put together on @Joe Fairless podcast episodes 1562-1563,1569-1570,1576-1577,1590-1591. It gave me lots of ideas! Some ideas for ways to find money:

1. Make posting on bigger pockets multi family forums a daily habit. You'll make all kinds of connections via private messages.

2. Network your Arse off at local REI meetups (go deep in relationships, not necessarily handing out as many business cards as possible)

3. Think about folks in your friend group that may be interested in investing. You'd be surprised how many people want a piece of the action. Real estate is sexy

4. Move into a duplex so the bank underwrites your personal housing as an asset instead of a liability

5. Make it a point to hang out with people who have money but also have something in common with you. I personally love the financial independence community and those folks would love to diversify into some real estate.

6. Apply for personal lines of credit at the big banks, I was able to get a credit line for $29.5K at 10.5% interest. Not a bad thing to have in case funds get tight. Always better to ask for money when you don't need it. 

Did you have a question?