All Forum Posts by: Tyrone Dennis

Rashad, I appreciate you posting your case study. My 1st renovation was a SFR in St. Paul, and there was quite the learning curve.

I like the vision sir.

1st thing is what system do you plan to implement for property management, maintenance, lending etc...

I'd surely link with a commercial agent who specializes in apartments, not a residential agent.

I'd be curious to know whether there are any big repairs needed, and whether there is any room to increase revenue (increase rents, lessen expenses)?

I'd be willing to chat more if you wanted...

Most of it has been covered, but some clarity on what type of private lender helps cater the guidance.  Aside from that, I think building a respectable working relationship with at least 1 lender is vital.  Especially if they have to submit your request to a committee...that lender might be willing to go to bat for you and get you your loan, when otherwise you'd have been dead in the water.  In regards to having a backup, you kinda have to, things happen, ppl leave, sometimes ppl have a falling out, sometimes your point of contact just isn't available, or might lose their way (not give you the best debt for the situation).

The advice I'd give my younger self would be to put more money into a tax deferred account and to have done it sooner! Then when it was time to withdraw it, seek opportunities to carry depreciation to help offset the expenses associated with withdrawing it from a self-directed IRA...yup.

Send me a direct message, maybe I can help you evaluate the property better. I work in investment CRE.

Jeremiah,

What is the cap rate for the property and the comp?

I'm rather curious to know whether the current owner is getting renters to pay their share of the rent.  You'd hate to burn up all your potential rent gains by chasing for rents.

Are you looking to exchange into this property.

I work with commercial advisors who specialize in multi-family and all of which who focus on subsectors in each given market.  We have a lot of listings in-house among our agents through-out the firm and I am more than confident we can work on finding you something to fit your criteria during your upleg period of your exchange.

Reach out to me directly if you want me to connect you a commercial investment agent who works in the area you are interested in.

The making it and coming up does mean a lot. I ended up paying cash for a car instead of financing it just to be sure I could get a lone.  Also,  I got tired of renting u-hauls every other year.  

Most of my life was spent living in apartments, this extended well into my adulthood.

Cool breezes and the sounds of nature have a way of helping you get comfortable and even fall asleep, but living on the first floor I always felt just a wee bit too uncomfortable to leave my windows or patio door open & unattended—perhaps growing up in the hood and my line of work wouldn’t let me. Even better (spoken sarcastically of course) I recall dogs pooping near my garden level window, and the smell of neighbors’ chain-smoke inside my living room. During the summer unkempt bushes blocked my grand view or the parking lot. My least favorite thing about living in an apartment was hearing the things that go bump in the night, but not the ones from the monsters under your bed or in your closet-but from the bedroom above.

Even when I landed myself in a second or third floor apartment, some solutions surfaced but new problems arose. You know…like too many trips up and down on grocery day, and angry neighbors with brooms are to name a few. How about the dreaded apartments without visitor parking or limited residence spaces.

Now in my home I can park 4 cars in my driveway, and there are no more chain-smokers. Furthermore, the only thing that goes bump in the night are those bumps I choose to hear.

What are reason that make home ownership right for you?

I read the majority of this thread and saw the ample advice.

I too am new to RE, 1 rental and actively working on 1 flip.  From my flip experience, I find that money is important, but getting the job done is primary.  

The rehab of a home requires significant oversight and involvement.  Will either of you have the time to commit?

Regarding what type of RE deal you get into 1st, I believe it is based on local market (even as micro as neighborhood).  Will you have money to cover holding cost of a vacant rental or AirBnB...is the neighborhood too expensive to rent with a good profit margin? Is flipping most advantageous in that area?

I'd say RE is the strategy, but each deal has it's own tactic and exit strategy.