All Forum Posts by: Tim Kaminski

THE TRANSFORMATION

Went with the concrete paint!  Just had to finish the thread to show everyone the final result.  11 Gallons later!  Very happy with result.  Doesn't look amazing but SO much better than what was previously.

BP,

Have a Owner Occupied Duplex that I have been renting out and fixing up for the past 8 months. Wanting to pull out equity with a HELOC and look for another 2-4 Unit use that money on a down payment.

Question:  Say I pull 20K to use on a down payment.  Will that full 20k balance be due the following month like a credit card?  If I just pay the minimum payments, wouldn't I be subject to ridiculous charges/fees?  Am I off on this?

Do people put up with this until they are able to refinance and pay off the HELOC in full?

Thanks,

Tim

@Jonathan Barreneche Like how much did the painting cost?  Would guess $1.5-2K off top of my head.  No new floors.  Think Refinancing would be best bet as I would have a fixed interest rate but would have to find a bank deal that closing costs to make it worth it.  Have only owned the property 8 months so need to find out what it would actually appraise for today.  

Gross Income $1,900- PITI= $700 -Vacancy($100)-Management($190)-Water/Trash($60)-Capital Expenditures($150)- Repairs($100)= $100

So only $100 in cashflow after all those expenses which is not ideal BUT have been cutting costs.  Moved over utilities to tenants except water/gas which has just 1 meter(Looking into submetering).

Tenant A is only paying $900, not $1,000 like Tenant B. so once that is adjusted, will have $200 in cashflow so $100/Door.

Still fixing up property so not extremely concerned with cashflow as most of the money I get is going right back into the property in terms of improvements,

Posted this on another Forum with little to no feedback.  Hoping for more criticism.

BP,

Completed my first deal back in February of 2018. Wanted to get some advice on what I did wrong/right, what I should try to do better, and how to grow from this point.

Deal- 1923 Wood Frame Duplex in Growing area- Tampa Heights, FL. (2) 2/1's.

Unit A- Originally rented at $825-> Increased to $900.

Unit B-Originally rented at $750-> Increased to $1,000. In process of turning over with lots of interest.

Total Income: $1,900. PITI: $1,200.

5% Down Payment of $163,000 Purchase Price.

Property Appraised for $190,000 right out the gate.

Originally paid Gas/Water for both units and electric for 1 side, but am in process of switching electric over to new tenant, which should save $140-160/mo. Water/Gas is on 1 meter and don't think plumbed correctly to sub meter.

Rehab-Have put around $15,000 of my own money into rehabbing the property. Most of which came from installing HVAC into both units. Some of the larger expenses-Interior/Exterior Paint, Storm shutters for a few of the front large windows, added additional cabinets to one unit, New refrigerator from Dent/Scratch store after old one died, Laundry units that tenant pays +$50/mo for etc. Want to finish the outside concrete patio as one last large project and be done with improvements.

Hindsight: Should have went with a 3-4 unit place but just glad to get started. Should have went with block home with all the termites and hurricanes Florida has to offer. Looking back, may have just kept the wall units but central air seems to be a big draw for the renters.

Future: Am looking into getting a HELOC/HEL on property to fund the next multifamily investment. Thoughts vs Refinance? Seems like I should do this sooner rather than later due to growing concern of market being topsy.

I know this is not a home run and I am not cash flowing as much as I would like but want to use this investment to continue to learn and grow and eventually hit double/triple/home run(!) one day.

Thanks,

Tim

BP,

Completed my first deal back in February of 2018.  Wanted to get some advice on what I did wrong/right, what I should try to do better, and how to grow from this point.

Deal- 1923 Wood Frame Duplex in Growing area- Tampa Heights, FL. (2) 2/1's.  

Unit A- Originally rented at $825-> Increased to $900.

Unit B-Originally rented at $750-> Increased to $1,000.  In process of turning over with lots of interest.

Total Income: $1,900. PITI: $1,200.

5% Down Payment of $163,000 Purchase Price.

Property Appraised for $190,000 right out the gate.

Originally paid Gas/Water for both units and electric for 1 side, but am in process of switching electric over to new tenant, which should save $140-160/mo.  Water/Gas is on 1 meter and don't think plumbed correctly to sub meter.

Rehab-Have put around $15,000 of my own money into rehabbing the property.  Most of which came from installing HVAC into both units.    Some of the larger expenses-Interior/Exterior Paint, Storm shutters for a few of the front large windows, added additional cabinets to one unit,  New refrigerator from Dent/Scratch store after old one died,  Laundry units that tenant pays +$50/mo for etc.  Want to finish the outside concrete patio as one last large project and be done with improvements.

Hindsight:  Should have went with a 3-4 unit place but just glad to get started.  Should have went with block home with all the termites and hurricanes Florida has to offer.  Looking back, may have just kept the wall units but central air seems to be a big draw for the renters.

Future: Am looking into getting a HELOC on property to fund the next multifamily investment. Thoughts vs Refinance? Seems like I should do this sooner rather than later due to growing concern of market being topsy.

I know this is not a home run and I am not cash flowing as much as I would like but want to use this investment to continue to learn and grow and eventually hit double/triple/home run(!) one day.

Thanks,

Tim

@Brendon Woirhaye  Appreciate your response.  Yes I will look further into similar rentals and I agree about switching price.  I don't want to make it a habit but I end up second guessing my price when I receive a lot of interest.  Thanks

Thanks @Steve DellaPelle  Will do just that.

@JD Martin  Thanks for your response.  It is early on in my experience as a landlord so trying to find that balance of how to make a good profit without driving away tenants.  I waited to increase rent after the turnover as well, just wasn't expecting so much interest and want to make sure I'm not missing out on money.  Not trying to be greedy but I put quite a lot of money into the place to get it fixed up and want to see that return sooner rather than later.

BP,

Going through my 2nd turnover.  Previous tenant was in 1 side of duplex for under market rent as work was being done and now he is leaving and trying to find the maximum rent value.  Since then, Exterior and Interior has been painted, Added some nice hurricane shutters and generally improved look of property.

Previous Rent: $800.  Bumped it up to $900 and listed it on FB Marketplace.  60+ replies in 12 hrs so I bumped it up to $1,000.  A few people dropped but I am still getting interest every hour from ppl wanting more info on the unit.  Problem is I have already scheduled a group showing date for Sunday but want to get the most profit out of this as possible.  Rentometer lists average rent in my area for $1,090.  Prescreened and invited 25+ to see property.

Should I just wait until Sunday to see how many interested/qualified people actually show up?  I don't want to practice bad etiquette but I do want to get as much value out of this deal as possible as it is my first and need money for future investments/repairs.  If a large group shows up and I have multiple qualified tenants, is there a way to bid them against each other to get maximum return on this?

Thanks,

Tim