All Forum Posts by: Aaron Harren

Looking for recommendations for a Real estate attorney and title company who has experience with Subto in the Tx coast area! Trying to make a deal happen before years end! Thanks in advance!

I'm 36 and started this journey sept. 2018 so getting close to 2 years in.  I am currently up to 8 properties totaling 21 units. Only one single family.  7 of these i own by myself and a 5 unit with a buddy of mine.  I am currently working with two buddies now and we have a PA on two duplex's and writing up another PA on a single family. It has been a fun ride and now i'm enjoying working with other people to help grow some more. Learning so much as I go and learning which direction i want to continue in.  I'm actually looking into selling a property for the first time as well so I can have some cash to invest with my two business partners on some larger properties!  Hoping to be at 30 units by the end of 2020.  

@Tim Swierczek

Thanks Tim.

Tenant text me last week Thursday saying they are moving out on April 30th.  They sent a text message stating that there are plumbing issues with drains not draining (first time they have ever told me about these issues) and at the end of the message they said that they were waiting to find a new place before they let me know and now they are moving out.  They are 6 months into there 12 month lease.  How can I handle the deposit once they leave.  Can I keep the deposit for them just leaving with a weeks notice only and with the lease still active?

Thanks

Aaron

@Dan Milinazzo I am doing it under an LLC. 70% LTV. The bank i've been using for all my properties has been doing 5.25%. Doing everything in house. With the market being crazy right now i'm having the bank looking at pulling my home mortgage and my HELOC all into one 15yr fixed mortgage.........

@Joshua Norwood

$725 and $810

Finally after some time I can say I am completing a Brrrr! I purchased my first duplex in sept 2018 for $95,000. Immediately remodeled the first floor unit. (New flooring, new walls, new paint, bathroom overhaul)

The tenants from upstairs then moved into that unit. As they wanted the new unit. Which worked great as I raised rent by $125mo!!!

I then only had to clean up the upstairs unit. Updated some fixtures. Added a washer and dryer and then rented that one out with a higher rent then it was before!

Now 1-1/2 years later the place appraised for $142,000!!! I am pulling cash out to help with down payments on another duplex and a 5 unit that I will be closing on later this month!!!!!

I can wait to do this again. In the past 1-1/2 I will have purchased 8 properties totaling 21 units! And a couple of these I have done quite a bit of work to!

It’s so fun to see the process coming full circle!!

Sept 2018, bought my first duplex in for 95,000. Used HELOC for down payment remodeled the first floor right away and moved the tenants from upstairs to down stairs and raised there rent $100mo. Then I was able to clean up the upstairs and get new renters there with a higher rent as well.

Feb 2019, purchased my second duplex for $77,000 off market. Used HELOC for down payment A unique property as the front side is a post office and the back side is a 2 bedroom house. Post office makes for a nice low maintenance property for the most part. (although I did have to do an ADA compliant update to a ramp railing the first year. They do 5 year leases at a time which is nice.

April 2019, purchased a 4 unit for $100,000. Used HELOC for down payment All one bedroom units and was a work in progress to start. Luckily had bad tenants leave on there own but they left everything behind for me to deal with. What a nasty mess.

August 2019, purchased another duplex for $83,000 off market. Used HELOC for down payment. This one I was able to clean up and re due the second floor unit right away and get a new renter in which i was able to raise rent. A few months later the main floor family left and I had to do a complete remodel, new flooring, windows, jack the floor up, get rid of an entire garage full of junk. I was able to up the rent for this unit by $190 a month.

November 2019, purchased a Victorian style triplex off market. Used HELOC and borrowed money from parents for down payment. This property is so cute and so original with the woodwork and its touches. This one is in a great hidden market for my area. Right now it is set up with all the units 1 bedrooms but the main floor could be converted to a two bedroom and possibly even the second.

Jan. 2020 purchasing a single family home Contract for Deed from inlaws. $60,000, zero down, 3.5% for 10 years. A deal I had to take even though its not a multifamily.

This March I will be closing on another Duplex for $88,000, beautiful property and well taken care of and needs little work.(small electrical updated needed) I am refinancing my first duplex to pull cash out for this down payment. I bought that place for $95,000 and it appraised for $142,000

I am also closing on a 5 unit the end of March that I brought my cousin in with me to partner with me. $158,000. This a an 1880 mansion 5500sqft turned into what can be used as a 4,5,or 6 unit property. We are borrowing money from a family member for half the down payment and we are splitting the other half between us.

It has been so much fun and I have learned so so much in such a short time. It is also so nice to be seeing first hand how it works to use other peoples money and to pull equity out of a property to buy another one.

Also been a tricky ride with working a full time job having a now 4 yr old and 1 yr old girls. And a unique situation with my wife being in a wheel chair requiring me to be around more. Family first always. They are my why!!!!

Sept 2018, bought my first duplex in for 95,000. Used HELOC for down payment remodeled the first floor right away and moved the tenants from upstairs to down stairs and raised there rent $100mo. Then I was able to clean up the upstairs and get new renters there with a higher rent as well.

Feb 2019, purchased my second duplex for $77,000 off market. Used HELOC for down payment A unique property as the front side is a post office and the back side is a 2 bedroom house. Post office makes for a nice low maintenance property for the most part. (although I did have to do an ADA compliant update to a ramp railing the first year. They do 5 year leases at a time which is nice.

April 2019, purchased a 4 unit for $100,000. Used HELOC for down payment All one bedroom units and was a work in progress to start. Luckily had bad tenants leave on there own but they left everything behind for me to deal with. What a nasty mess.

August 2019, purchased another duplex for $83,000 off market. Used HELOC for down payment. This one I was able to clean up and re due the second floor unit right away and get a new renter in which i was able to raise rent. A few months later the main floor family left and I had to do a complete remodel, new flooring, windows, jack the floor up, get rid of an entire garage full of junk. I was able to up the rent for this unit by $190 a month.

November 2019, purchased a Victorian style triplex off market. Used HELOC and borrowed money from parents for down payment. This property is so cute and so original with the woodwork and its touches. This one is in a great hidden market for my area. Right now it is set up with all the units 1 bedrooms but the main floor could be converted to a two bedroom and possibly even the second.

Jan. 2020 purchasing a single family home Contract for Deed from inlaws.  $60,000, zero down, 3.5% for 10 years.  A deal I had to take even though its not a multifamily.

 This March I will be closing on another Duplex for $88,000, beautiful property and well taken care of and needs little work.(small electrical updated needed)  I am refinancing my first duplex to pull cash out for this down payment.  I bought that place for $95,000 and it appraised for $142,000

I am also closing on a 5 unit the end of March that I brought my cousin in with me to partner with me.  $158,000.  This a an 1880 mansion 5500sqft turned into what can be used as a 4,5,or 6 unit property.  We are borrowing money from a family member for half the down payment and we are splitting the other half between us.

It has been so much fun and I have learned so so much in such a short time. It is also so nice to be seeing first hand how it works to use other peoples money and to pull equity out of a property to buy another one. 

Also been a tricky ride with working a full time job having a now 4 yr old and 1 yr old girls. And a unique situation with my wife being in a wheel chair requiring me to be around more.  Family first always. They are my why!!!! 

I’m looking at different ways to come up with a down payment for a duplex. Wondering if cashing out my small 401k balance is a smart idea. Balance of $15,000. Live in MN.

The reason I am considering this is over the past 15 months I have purchased 6 properties totaling 14 units. I have used up my down payment option of using my HELOC.

Any other creative ideas to try? I’ve asked the seller about owner financing but he wants $50,000 down so I’m not going to do that.

I’m going to ask him if he would be willing to finance my down payment for me and that way he will get his $50,000+ still....... but I feel this will hinder me with what I want to offer him for the property.

Thanks for any advice.

Aaron