All Forum Posts by: Account Closed

It doesn't sound like your property is making enough money. To me it sounds very dangerous. If it was me, I would take money out of stocks and bonds to use for a 20% down payment on a more expensive property that cash flowed better. In most markets there is a "sweet spot" ($ amount) where the houses cash flow the best. If you can't cash flow paying retail (house on MLS), you may want to consider rehab and holding.

Ps: If what Gordan says is true, your going to go negative in your cash flow. Which at that point, your better off investing elsewhere. If it only rents for $100 over Principle and Interest, you still haven't figured maintenance costs, vacancy, HOA's etc etc.

Please look elsewhere or network with current investors in the area to learn how they're making their 12%-15% returns.

Thanks for all the advice!

I spoke with a house flipper I know very well. He does about 4 at a time and said he wouldn't mind doing a JV type deal ongoing. If I funded 100% I'm thinking he's going to want ~35%. I know the average is 50/50, but he's very experienced and my money would be safe going with him, than somebody I don't know. He's going to think about a percentage and get back to me.

I was extremely overwhelmed over the weekend looking at new development in Denver, only needing $15k down and a bank statement to hold a unit for 6 months, than potentially sell. I got even more overwhelmed looking at Loopnet all over Texas, Florida, Denver etc. I'm definitely not ready to take on a project of that scale.

Any advice for JV? I'm going to read up on it here on BP. Thanks once again everybody! Very much appreciated grounding me back to basics.

I am not sure if I could afford a top $ repair off the bat. I will need to do research into repair costs on a 10-20+ unit. 

I am considering some JV moves for the next few years.

That's some really great advice for sure! Back to the basics, I guess.

The duplex is not owner occupied and I'm trying to do a 1031 exchange.

The goal is more passive, unfortunately, with the ability to do work over the phone.

I like the idea of apartment complex's with the ability to hire a PM. I would be slightly strapped for cash off the bat, so potentially have a momentum play going or an add value that currently pays the bills. 

I will do more research, but more suggestions are highly appreciated.

Hey BP'ers, I'm a long term lurker on here. I am very very overwhelmed with all of my options and would like to bounce some ideas off of you guys. 

I purchased a 2 unit in Denver, Co Feb. 2014 for $301k. Just appraised for $425k-$440k :-) Going to sell, pull ~$180k+ from it and re-invest.

My goal is to start flipping in 5-7.5 years. I'm going to use my ~$200k capital to invest until than. Either liquidating the unit(s) at that later date or keeping them, using the made income to flip ~$150k houses. I do not mind what state, as long as I can get a good property manager. I currently don't have the time to property manage myself. Also I won't be able to do work on any units myself, without contracting it out.

Financing:

Use the ~$200+ for down payment: 

A) There's some guys on the market place advertising low 3% fixed 30+ for a single property $1mil loan value --Seems too good to be true?

B) Only have ~$460k loan allowance for conventional financing at ~4.65%.

C) Commercial ~7% financing for a single property or blanket (multiple units) with a total of $1 mil purchasing power. Very expensive mortgage, but could use the income from property(s) to qualify for re-finance conventional in 2-4+ years depending on property type.

Property options, potentially a mix of a couple:

* Large 8-20 unit apartment complex(s) $500k-$1.1ish - Local or long distance.

* 10+ "turn key" Harrisburg, Pa houses @ $60k - $125k

* 1 or 2 new development townhouse in an upcoming RiNo area of denver for ~$450k, with the hopes of appreciation in 5 - 7.5 years and sell. Barely cash flow, barely break even if 7% financing. 

*Commercial warehouse that could potentially rent to MMJ

There's too many markets, too many options,   I'm just kind of stuck on what to do and could really use some suggestions from someone more experienced. Thanks in advance.

When your property managers fix for water leaking into an apartment is this...

Please don't mind my venting. 

*3 Month vacancy for 1 unit costed us $350 in electricity from Jan - April 1st, when the main heat source is gas and there's only 1 electric baseboard in the bedroom. Plus the 3 month vacancy for trying to get a too high rent.    It is our fault for letting it take so long, but she strung us along saying we have more applications coming in.

* A tenant strung the management company for 6 weeks with no payments. Didn't tell us for over 4 weeks

*Than we had a water leak issue that went unresolved for over 3 weeks. At first she told us that they already fixed the issue with the "water speed bump". Than I saw a picture of this speed bump, had a heart attack and called a third party who said - "There's drains that are clogged." When both the property manager and their handyman weren't able to see the drains. Called them back to get them snaked. After 3 weeks of water issues, we just found out today that;

"BTW the plumber that snaked the outside drains says that they are blocked and probably collapsed as they only got dirt out. He did recommend a sump pump in XXX apartment,  possibly in a closet"

So we were trapped into a 1 year lease with the management company and they finally let us out of it July 31st, without paying them the remaining 9% gross remaining predicted rent because we were complaining too much and the unit is too much work. "I have unrealistic expectations for what a property management company does"

So do some due dillagence and get a property management company who will let you out of the lease if you are disatisfied with their services. I did interview the new manager who spoke with me for over 4 hours about his process, which I am very impressed by thus far.

Any suggestions would be great. We're not sure how to deal with the drain issue and am probably going to get another plumber to snake it and see what happens. I could go all day for how dissatisfied we are, but that would probably get irritating and boring. Of course this speed bump is a liability which they are going to take down, which is only going to ruin the cosmetic look of the sidewalk... Thanks for your time.