All Forum Posts by: Uriah D.

@Derek B.

Sorry I shouldn't have rushed to get this out. Repairs are only ~$1,000 per unit. I would need roughly 8k per unit to buy/ rehab. 6 for purchase/ 2k for closing costs/rehab. 700 is rent for each unit. 1400 combined. Capex should be 150-200 month for both units. Hoa covers exterior. Hvacs were replaced within the last 4 years. Maintenance has been kept up.

I'm definitely not an huge fan of condos either, but it's hard to pass up owner financed at 0%.  

welcome @Kirk Kitchin. Load up your info page and maybe a pic of yourself so we know you are real!  @Account Closed only great gc I know!  I know some decent subs.  Best lawyer I've worked with - roper and Taylor off six forks in Raleigh. Still looking for a great accountant that invests themselves in flips. I know a couple that do buy and holds mainly. PM me if you would like their info. 

I have an opportunity to pick up 2 condos in Raleigh, NC. These are b- to c properties IMHO. Market value is 45-48,000. I can purchase both for 40,000 each (80,000 total). Owner wants 12,000 down and 600/month for both. 0% interest! My biggest concern is the HOA not having enough reserves. It wont cash flow a bunch for the first couple years, but its paid off in 9.5 years and equity build up is $7,200/yearly on both. They have pushed the 10% allowable HOA dues increase for the last several years and my guts says this may not stop for a couple more years as they are aging ( built Mid 80's). I don't particularly see an assessment coming as it hasn't been proposed lately and since the lower income owners probably aren't going to vote (2/3 needed) for a large assessment when they can just pay the monthly HOA dues as they increase. Capex is lower than sfr as the HOA maintains the exterior.

Monthly Income: 700

Monthly Expenses: 533.75

Monthly Cash Flow: 146.25 (not including capex)

Pro Forma Cap Rate:13.17

NOI: 5,533

Total Cash Needed: 8,000

Cash on Cash ROI: 21.94

Purchase Cap Rate: 13.83

Paid off in 9.5 years

Would you go through with this?

Originally posted by @Ed W.:

I've done numerous multi-parcel deals (deals with 2, 4, 5, 10, 12, and 36 come quickly to mind) and I'm in contract for another 2 at this time.   I have always used one contract BUT that is not without it's problems.  

Among other considerations, if you want absolutely want or need all of the parcels, one contract is probably the best option (or multiple contracts with language that requires all to close or allows none to close) because a deal killer defect in one will allow you to bail on all.  If you prefer to close on as many as possible but don't necessarily need all, then one contract for each with no language linking the contracts would be smarter because you can bail on any that have serious problems you don't want to deal with.

There is a lot of experience and knowledge on this site, I expect you'll get other food for thought as well.

 Good ideas here. Ill probably have my attorney draft up something similar to this.  it will probably be a all or nothing deal.  Thanks Dawn for the info. 

Im about to send out a contract for 4 parcels of land/residential totalling ~13 acres in Raleigh, NC. I was wondering from those more experienced in this if I should be sending out 4 separate contracts for each or 1 containing all parcel #'s?  Im trying to avoid having 50+ sheets of paper for the seller to sign and myself to keep track of. Also, we agreed to a price for everything combined and 2 of the lots have homes/mobile on them. the 100+ year old house is vacant and the mobile is...well a cheap mobile that is barely livable.  Any suggestions? 

I would sell it as-is for 130 NOW. You'll spend the 20-25 in rehab and make the same amount, but you will have 2-3 months of work and finish up in the middle of winter. Also, don't do loans unless you have to, especially when starting out. Once you have a few under your belt get loans to help you do more.

@Jeff L.

We were unable to locate one that made sense to me. After we priced out several companies we realized we could buy all the stuff (for the cost of 2-3 months of staging) we needed and keep for the next one. Now it gets moved from one job to the next.  It may not work well for everyone, but we have significant cost savings now that we have been doing it this way for awhile.  Or if your family needs new furniture and it lines up with what you need for staging, buy it for staging a house, then bring it home! 

600 ish for attorneys fees including title policy.

I haven't had a home inspection done by an outside company in several years so I can't help you with that. 

I use roper and Taylor off six forks. 

@Michael Neely

Welcome! There is a meet up tonight at tupelo honey in Raleigh. Starts at 6. Come on.

Originally posted by @Chris Martin:

Regarding "*** I would also like to hear what Buy and Hold investors are thinking ***"

This is the 'hold' cycle of the buy and hold.

Agreed. Few of the BP marketplace listings in our market are worth purchasing currently in my opinion. Auctions are getting tight, MLS - ha. Networking is the best bet in my opinion along with some form of marketing. Do your best, get properties under contract, list them on BP and Craigslist, etc and see what happens, if you do it right someone will buy, if you suck you'll find out quickly.