All Forum Posts by: Timothy Boyd

@Nathan Dixon Hi Nathan!  Welcome to the community!  Lots of great information on the forums and blog posts here.  The podcasts are also a wealth of knowledge.  My wife and I are also relatively new and currently looking for our second deal.  Let me know if there is ever anything I can do to help you on your journey!  Good luck!

@Shannon Jackson  Hey Shannon!  I live in Clermont County and we are actively looking for our next deal.  Please add me to your list!

@Blake Jennings  Hey Blake!  Get in touch with @Zachary Elliott.  He started up a meetup for the Cincinnati/NKY area.  It has been growing and has some good turnout every time I've been there.  Hopefully see you at one of the meetups soon!

@Justin Johnson  Hey Justin!  Thanks man!  We are very excited to be in the game now too.  Both units are occupied, and we inherited both sets of tenants.  Luckily, both sides seem to be very good people.  I believe they both work in the Dry Ridge area.  So far everything has been pretty good.  Still have some repairs to do on the property (deferred from previous owner), but after that is done we will be trying to figure out how to pick up a second property!  Appreciate the positive vibes!

Investment Info:

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

Purchase price: $136,000
Cash invested: $2,500

Duplex built in 1999. 3 Bed/2.5 Bath on each side. The cashflow listed above is before taking after budgeting $200/month for CAPEX, $113.33/month regular maintenance, and $142.50/month in property management (currently self managing). Have some repairs to do on the gutters, flooring, fixtures, and windows but overall a really nice property. My wife and I are super excited about this one as it is our first rental property.

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

I know that rentals are the key to long term wealth building, so wanted to get the train moving!

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

MLS. Minimal negotiation, but we leveraged the inspection to get some credited towards our closing costs.

How did you finance this deal?

Conventional 25% down investment property loan.

How did you add value to the deal?

Currently working through the maintenance items. Will need to rehab the floors in one unit when tenants go on a trip. The value add will be relatively slow as we inherited tenants on both sides.

What was the outcome?

Going great so far. Heading there to do some improvements/maintenance every few weeks. Upping the rents by $50/month in the new year to get them closer to market (rents had not changed in years for the tenants). Very grateful to have this deal and get the journey started.

Lessons learned? Challenges?

Although we are thrilled to be in the game now, we will be looking to leave less cash in the next deal. If we can employ the BRRRR strategy going forward, we will be able to scale much faster and achieve financial freedom in a much more reasonable timeframe.

Some challenges with the lack of records with the previous landlord. We made up forms for everything they were lacking and had them sign during inspection period. Thankfully the tenants seem like very good people and families.

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

Johnny Hodge Coldwell Banker - Great realtor and friend.
Ravi Patel Guaranteed Rate - Great mortgage lender. Very helpful through the whole process.

@Emily Weglage

Hey Emily! House hacking is a great strategy, so good for you! I would start cruising MLS sooner than later to get a feel for RE value in the areas your interested in so you know when a deal comes your way. I would start talking with realtors sooner than later so you can establish the relationship and start looking at properties. Might be worth breaking the lease if the right deal comes up in January for instance. I don't have a contractor yet, and am trying to find one who will go down to Grant County Kentucky. If I find a good one who works Cincinnati also I'll send their info your way. My wife is brilliant so it didn't take much selling her on the idea. Tell your significant other that the equity you gain every month is something that will benefit you long term financially, and you don't have that option as a tenant. Best of luck!

Hey Jacob.  What is it that you are trying to learn from this person, and what does the MLM scheme have to do with it?  To me it just sounds like this individual is trying to sell you on the MLM stuff.  So unless there is really something unique this person brings to the table that you can capitalize on, I would pass.  There are plenty of people to network with and learn from who won't try to sell you on an MLM scheme to share knowledge.  I would recommend getting involved with a local investors group or even a virtual master mind of like-minded investors.  Good luck!

Hey Adriana. I think if the job is something you are interested in, and it is working under someone who is successful in this space you should definitely consider moving forward. Could be a great way to get your feet wet and get started in the REI space. You can use the 45 minute commute to listen to podcasts and increase your knowledge! I drive 45-50 minutes each way to a job I am not so thrilled about, but I use the commute time to learn about the things I am thrilled about. Good luck!

Hey Brooks. Not sure I am the best person to answer this, but in my opinion the BRRRR path is better. That way you can recycle that 80K over and over to scale your business. My wife and I just bought our first duplex, and it is more or less turnkey (some small repairs to be done). We are glad we did this to get our feet wet and start investing, but for our second investment property we definitely want to add value and refinance so we don't leave so much cash in the deal. Just my two cents. Good luck!

@Kyle Weinapple

Hey Kyle. Looks like you have two great options. Personally I would live rent free with your father as long as that works for your lifestyle. BRRRR is an awesome strategy in that you can recycle your cash. My wife and I are going to be looking for a BRRRR opportunity for our next deal. Either option you choose, I think you are on the right track and will be in good shape once you pull the trigger. Best of luck with it all let me know if there's any way I can help!