All Forum Posts by: Aaron Chittum

Josh!  Yes!  I went and researched this as well!  I suspect he has taken out multiple mortgages over time to fix the places up (I don't know that, I just have a suspicion).

Prop 1: 2000
Prop 2: 1998
Prop 3:  2004
Prop 4: 2004

I can't get a deal by offering him 70%, let alone not knowing repairs.  I just thought maybe someone out there would see something that I didn't and say "oh yea, dude!  Use this strategy and cash flow off his mortgage!"  ha!

Thanks, Josh!

Ladies and Gents,

     One of my leads for off-market deals came to me with one property.  Through questions and conversation, I find out he has FOUR SFRs within 3 blocks of a university (16000 enrollment) and after years of being a landlord, he wants out!  I'm going to list below the information I have thus far.  I have appointments with him next weekend to view the homes and estimate repairs.  I'm looking into seller financing and wraps (putting as little down up front as possible), but, with his payments, the numbers look rough. 

Can anyone advise if there's something here? I feel there is if I can do it right!  He may be too upside down to make it work.   My main concern is the amount he owes on the properties and how (if?) I can structure one (or more) wraps where I can give him a small down payment on each property and take over mortgage payments.  Is there anything I can do to lower those payments so that these will cash flow (props 1 and 2, mainly)?  Any way I can help this guy?  I don't know if short sales are appropriate for these?  Take it easy on me, this is my first of it's kind!

THANK YOU, BP community!  I will post more information as I receive it!

Property 1:

Comp ARV: 100,000
Rent:         1500/mo
Morgage:    155,000
Payments:  1070/mo
Repairs:  ?

Property 2:

Comp ARV: 125,000
Rent:         1500/mo
Mortgage:  130,000
Payments: $1060
Repairs:   ?


Property 3:

Comp ARV:  126,000
Rent:            1500
Mortgage:   85,000
Payments:     800
Repairs:   ?

Property 4:

Comp ARV: 97,000
Rent:            1500
Morgage:    95,000
Payments:    1000
Repairs:   ?

Hey Eric!  Also here in Alex! I'm always in the hunt here but I also look out of state! I'm in the submitting offers stage of my journey. Hit me up anytime! -Aaron

Brandon, you freaking rock.  Thank you.

Yes, C class established neighborhood. I'd love to not use a management company, but I live 3+ hours away.  I don't have the systems in place nor the experience to handle everything as a newb.  I recognize this and am trying to build that into my budget.  

I want to pay down the loan as quickly as possible with remaining cash flow then purchase more or upgrade.  I did set aside cash for upfront costs for these properties.  Everything past my reserves will go into capex on deferred maintenance.  

Again, you're awesome and I REALLY appreciate your take on this! 

@Brandon Sturgill,  thank you for your response! 

I apologize, in my head it made sense, but I didn't do a very good job breaking it down.

This is a single transaction, package deal. I have the option to buy one or both and I was considering buying both. I have the two sets of figures because I'm analyzing this deal based on both the properties and their individual performance. I guess I was looking for a general opinion on how the numbers look and if I have things in the ballpark as far as cap rate and ROI.

These properties are located in South Dakota.  I'm in Minnesota. 

Thanks again for taking the time!  Hopefully this explains a little.  This will be my first deal if I decide to move forward with it.  I've been lurking here for almost 3 years!

PS, I'm considering transferring gas/electric to tenants.  It's  about 50/50 with regard to that area and who pays utilities.

This is my first deal.  It's a package deal that includes a duplex and a tri-plex, 5 units total. It's  out-of-state  but  it's an area I'm familiar with. 

Management is a must. Thank you in advance!!

Hey fellas!  Just found this!  I'm in Alexandria.  Are you guys still meeting up?!  

Hi Bruce!  I'm up in the lakes area of MN and always interested in chatting RE - my main market area of interest is the I-94 corridor all the way down to the Twin Cities.  Welcome and feel free to hit me up sometime!