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Updated about 12 years ago,
23 Year old Mobile home and Apartment Investor from Chicago
Hello BP! My name is Alex. I know just a few members around here (including JScott) from the Fastlane (where I am much more active). My user name there is the same as it is here.
A quick background on me: I turned 23 a few weeks ago, seller financed two mobile homes when I was 19 and I currently own a 3-unit apartment building on the North Side of Chicago which I bought in October.
I have more entrepreneurial interests than solely REI, but I am joining BP to collaborate more with like minded individuals!
There are threads on theFastlaneForum.com with specifics of all of my deals, but here is a quick highlight of the current state of my apartment deal (I will be starting another thread because I have a question on how others might address the basement renovation financing situation with the property):
Purchase: $210,000 (REO); 2-units rehabbed and updated by the bank, garden unit not yet finished but the framing is complete
Down 3.5%: $5,000 Earnest, $900 at closing (seller covered $7,500 in closing costs, also used to buy the FHA rate down to 3.25%)
Capex: ~$8,000 (Updated door hardware, amp service from 100 to 200, coin-op laundry machines, etc)
Location: 1 block from Brown Line in Chicago (great) on the North Side
Comps: Property across the street, similar layout sold for $300,000 in March (had slightly nicer finishes, unfinished garden unit)
Rent Roll: Unit 2 - $1,300 with parking (3 bed, 1 bath...currently under market since rented November 1st)
Unit 1 - $1,100 (live in 2 bed, rent one room at $550 and currently use one parking space worth $150/mo, renting out beginning next month)
Garden - $950 (2 bed, proforma for rehab; will cost $15,000-20,000 to rehab)
Laundry - $30/mo
NOI @ 45% (brand new water heaters, furnaces, appliances, etc): $17,030
PF Basement Reno NOI @ 45%: $23,430
As-Is Cap: 7.8% (yuck!)
ProForma Basement Reno Cap Rate: 9.8%
These are pretty conservative numbers....during ideal rental season the property should gross ~$3,700/mo ($44,400 a year) at peak rents with $35,000 ($240,000 including financing) all in on my end.
Hoping to 1031 or cash out refi in 1 or 2 years for ~$315,000 (7.75% cap) less Capital Outlay of $35,000 less bank debt I will owe of ~$200,000: $80,100 profit
Plan to roll that, plus currently saving all of my salary to put $150,000 down on a 30+ unit project and also obtaining two separate mobile home parks.
I apologize for the lengthy into, I tried to keep it high level or this would have been a novel!
Thanks BP team! I look forward to making new friends here and to helping each other earn and learn!
Alex