All Forum Posts by: Adam Reeves

@Blake Edwards

I am self employed so no 401k. I do contribute a small amount to a Roth IRA.

My wife does contribute to a 401k with her employer match. She does not max it out. We will often weigh the pros and cons of pulling her 401k and investing that amount in real estate. Still might but as of now we haven’t moved it.

Great question btw

@Cory Lucas

I use a total of 9% on capex vacancy and repairs. I do not account for Mgmt at this point but the deals I buy typically have plenty of room. The 9% number came from my banker, that’s what they use when underwriting the loans

@Robert Henderson

Not load bearing

@Steve Vaughan

Thanks Steve I appreciate the kind words. The seven year term is straight am, since it is a hefty payment the 3br apt does not cover all expenses. However if we were not occupying the commercial space we would cover all expenses.

Thanks again...and Goodluck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $400,000
Cash invested: $100,000

This is a two unit mixed use property. One large commercial unit we use for a business I own. Also has a 3 br 1 ba home attached that we rent.

What made you interested in investing in this type of deal?

We use the commercial unit for a landscaping company I own and rent out a three bedroom home that is attached.

How did you find this deal and how did you negotiate it?

This building had been for sale at a previous time, but was currently not on the market. I made a few calls and got the current owneron the phone. He was still interested in selling, we met, inspected the place and decided to purchase it.

How did you finance this deal?

Owner Financed with 25% down on a 7 year term.

How did you add value to the deal?

It is a building that was for a buyer with particular needs. We had the need so it was a good fit.

What was the outcome?

Still own it and occupy it.

Lessons learned? Challenges?

Off the market doesn't mean not for sale.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $175,000
Cash invested: $5,000

This was my first property purchase. It was our primary residence so we got in for 3% down. Lived there for 7 years, during this time we renovated the entire property. When our family grew we decided to keep it as a rental and has been cash flow positive since day 1. Zero vacancies since we began renting in 2015( three diff tenants thus far)

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $450,000
Cash invested: $90,000

8 unit multi family property

How did you find this deal and how did you negotiate it?

Found through MLS, negotiated through RE agents

How did you finance this deal?

Straight cash homie(Randy Moss Voice)

How did you add value to the deal?

The exterior of the buildings were in great shape but we have been slowly renovating the insides of each unit as inherited tenants move on.

What was the outcome?

Still going strong and getting better as we invest more time and sweat equity on making it work the max capacity

Lessons learned? Challenges?

Don't be a tenants friend, be kind and courteous but firm on all rules and stick to your guns with all tenants.