All Forum Posts by: Tesho Akindele

Hi @Leah Weisel. Congrats on 31 units! That is awesome! I use Stessa for my bookkeeping, but I don't know if it would be as useful for you with so many units. Worth a look though if you haven't checked it out already.

Another option could be hiring a bookkeeper. With 31 units it is probably worth the investment to find a quality bookkeeper who can take all of the accounting off of your plate and free you up to focus on growth. I know investors who hired a bookkeeper and they swear it was one of the best decisions they made.

@Kevin Zielinski Are you looking to buy one rental property or a package of multiple properties? If you are just looking to buy one, my opinion is that it's better to just use traditional financing. You get better loan terms and rates locked for 30 years. 

@Fernando N Cruz you could partner with someone who would be able to qualify for a loan

The best way to find deals in a market like this is to find houses that are not on the market. If you can go direct to seller you cut out all the competition and bidding that comes with every MLS property.

@Mikha Sarmiento do you have a team on the ground that is going to help you with this flip? You can do a successful flip in most neighborhoods if you buy at the right price. Having a solid team is going to be the difference between success and failure, especially because you’re long distance.

@Gabriel Johnson we ended up getting 20% down, 3.5% interest, 5 year ARM, 25 year amortization.

@Caleb Brown Thanks!

@Kyle Keller thanks Kyle. It was a long process but definitely worth it!

Investment Info:

Package of 9 single-family houses. Six of the houses are in KCMO and the other three are in KCK.

Purchase Price:

$432,000

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

The deal fits my strategy of buying cash-flowing properties and building passive income.

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

Our property manager brought us the deal. The seller was an older investor who was looking to sell his properties and retire. She brought the deal to a few of her investors to see if there was any interest.

We were able to knock 6% off the original asking price because the seller was planning to use a realtor. We then agreed to pay our property manager a 3% finder’s fee. It was a win-win for everyone involved.

How did you finance this deal?

Me and my dad started an LLC and each brought half of the money needed for the deal.

What was the outcome?

The properties appraised for $587,000. All of them currently have tenants, and they are bringing in $6,500 in monthly rent. Market rent for these properties is between $7,600 and $8,000. We plan to make some minor improvements and raise rents to market rates over the next year or so.

Lessons learned? Challenges?

This was my first time using commercial financing. I called over 20 local banks looking for one to lend on this deal. Even though the cash flow is strong, none of the banks wanted to lend on the deal because a few of the properties were going to appraise for less than $50k.

In the end, we got a great loan, but it took a lot of persistence and using some relationships we had built on our previous deals.

@Vlad B. If you’re looking at deals from wholesalers you will definitely need a handyman and probably a contractor.

Maybe your realtor or PM can recommend some