All Forum Posts by: Timothy Allen Kidd

Investment Info:

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

Purchase price: $105,000
Cash invested: $31,500

This one was a Duplex deal that me and my brother partnered on in Fayetville NC. It was a really good deal with renters already in place. We can increase rent to match the area, but it is already cash flowing. Minimal issues to fix and great price for a multi.

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

Multi family is what I plan to build my business around. It makes the most since and is easier to scale once you get into it. much less work for multiple doors. Podcast and books I read really confirmed that this was the right direction to move toward

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

Me and my brother found this deal on the MLS in Fayetteville. The owners had dealt with another buyer that had things fall through. We negotiated the deal by having an appraisal done and then utilizing the value they came back with to get the cost down. went from 115000 to 105000. Also got the inspection done and had the owner pay us for repairs that we would need to make on the units.

How did you finance this deal?

We financed this deal through a traditional financing. 30% DP on an investment loan.

What was the outcome?

We closed on the deal and were able to keep the renters in the units and get the price we wanted for it.

Lessons learned? Challenges?

Getting the closing cost right before going to closing. There was a miscalculation that was caught a closing and cost us an additional 1500 out of pocket. We had it, but it was not a fun pill to swallow. Multiple changes to the price and adding myself to the loan after my brother did not have enough in his accounts was challenging and ate up allot of unnecessary time.

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

Yes we worked with a realtor. She was great. Would not work with the broker we did again. he was hectic and seemed overwhelmed with his workload. Did not make us a priority and had mistakes in his work that cost us at closing.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Louisa.

Purchase price: $450,000
Cash invested: $57,510

Purchased a property with a quad and a duplex located on the same property. The deal was an off market deal that I found through one of my realtors. I was able to negotiate owner financing for the deal with the owner at 6% with a 30 year amortization on the loan and a 3 year balloon. I had to bring 50,000 down payment plus closing cost. All 6 units were rented and I keep the current property manger in place.

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

Me and my brother had been looking at all different types of deals and we just keep coming back to multi family being the best way to go for cash flowing properties. You get so much more for all the work. One financier, one inspection, one closing, and 6 units!!

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

I found it by networking with multiple realtors. I shared what I was looking for and my realtor brought me the deal once she had found it. It was totally off market and the owner was negotiating selling it to someone else. I went and met with him. Share my business plan and background and then convinced him I was the better option for selling his property.

How did you finance this deal?

I utilized owner financing on this deal

How did you add value to the deal?

I was able to add value to the deal by increasing the rents and improving the property cosmetically after purchase. I personally brought value to the deal by finding it and putting it together with the owner my brother and the realtor. I arranged and communicated everything and insured it went to closing successfully.

What was the outcome?

We closed on the deal and are currently renewing the leases and fixing some minor issues with the property.

Lessons learned? Challenges?

Closing cost were a surprise. Taxes even on an owner financed deal hurt a bit. Negotiatin price in owner finance off market deal was not easy. He held all of the cards. Did get him to cover the commission for my realtor. 9,000 plus only 11% DP.

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

Yes I had a realtor. That was really it on this deal except for a inspector and closing agent. My realtor was awesome.

Dan, I am currently investing in the Charlottesville and surrounding area.  I focus primarily on multi family buy and hold investment properties.  I would be interested in looking into deals with someone who likes to get renter into the properties and manage them.  I also manage a construction company so I am use to getting subs in to fix issues and renovate properties.  I currently have 6 units in Louisa county and 2 units out of state.  If you are interested in chatting and seeing if we may be on the same page the hit me up and IM me.  

If you are going to the meetup meeting tomorrow at 5 at the omni in cvill I plan to be there. We can chat there and I will answer what questions I can. To give you a little background I have just recently closed on a deal here in Virginia in Louisa County. a 6 unit multi family that I am renting. I also recently closed on a duplex in Fayetteville NC that I am renting as well. I am happy to chat and share my experience. What exactly are you looking to accomplish with real estate investing and what is the business model you are going after? Buy and hold rentals? House Hack what your in? BRRR? a mixture? Are you currently looking for a deal and if so do you know what you want to find and how much you plan to spend? These are just some questions that can help me know what information may be helpful to you. I am still relatively new to the investment game, but I can tell you that doing a deal or two in an area really gives you allot of insight into what it takes to really get into this.

@Carrie Smith Welcome to Bigger Pockets.  I am investing in the areas around Charlottesville and have found that multi family rentals are hard to come by, but the way to go for cash flowing properties.  If you are not familiar with the area I would highly recommend finding multiple Realtors that have worked with Real Estate Investors and know the area well.  You can spend allot of time looking for properties that just won't cash flow.  A good Realtor that knows the area will bring you deals that are not on the market and can save you time by advising you on ones not to spin your wheels on.  Fluvanna and Louisa County are the best areas that I have found for buying rental units if you are just starting out.  Waynesboro and Green County are areas that I have looked as well and been able to find deals that can potentially cash flow.  I am happy to share what I have found and the realtors that I am working with if you are interested.  Good Luck to you! 

Hello!!  I am just getting started with my Real Estate venture.  I am most interested in Multi Family properties and I am currently looking for my first deal to get things rolling.  I need to learn allot and I am here to gain knowledge and get advice from those who have already gone before me.  Currently I am considering two multi family deals that I have found off market.  I hope to find advice on how others have made multi family work right of the bat especially in terms of getting the units financed once the deal is closed on.  Looking forward to hearing from the bigger pockets community! 

Greetings!! Me and my Brother are just getting started in our Real Estate investment business and are looking to jump right in with a Multi Family deal. I found some Residential General property that has been Zoned by the local town for 5 two story town homes. We are putting the deal together with my Father who is a local contractor and will be organizing the build and private investors for financing the build. The part that we are struggling with is determining the best way to pay off the debt and get the units under traditional financing after they have their occupancy permit and are rented. We plan to have land and units under and LLC until they are finished and then essentially sell the units to each other as we complete them so that we can finance them and pay the private lenders back. We also have the option to go back to the Town council and try to get the land approved for 5 Duplexes to up the doors to 10 instead of 5. Thoughts and suggestions!

Greetings!!  Me and my brother are just starting our Real Estate Business and we have an off market deal that a local investor and one of our realtors approached us with.  It is a 6 unit Multi, One Duplex and a Quad all on the same property.  The Investor is offering to do owner financing for us at 6% with the option to just pay the interest for a time.  He wants us to eventually re-finance the property and pay him in full.  Within the first one to two years.  The property is zoned commercial and we are trying to determine the best way to finance the property after we close on the deal.  I spoke to my broker and he is looking into the possibility of financing the two buildings separately.  I have also been told that a commercial loan with a local bank may be the best option to look into.  Thoughts or suggestions!