All Forum Posts by: Adam Wigdorski

@Sophia Smith

As everyone else mentioned, I would go all the local banks and see what they offer. I’d also check out premium mortgage and bank of Akron as well. For fha it should be pretty much the same across the board.

If it was me. I’d find a nice 4 unit to house hack. Live in one unit and rent out the other 3. Which are most likely already rented.

In a couple of years cash out refi it to a conventional loan and buy your forever home again with an fha. Instead of your dad being on the mortgage he can give you a one time “gift” to help with the small down payment. They would just need his financials and motorized letter of the funds. Joel mahakian at premium is pretty good.

I wouldn’t worry about anything until you go to a lender and see what they offer.

Once they give you your limit then begin the hunt.

Bank of Akron is a portfolio lender so they have more liberal lending products. I’ve always used Paula Kay from the Lancaster branch.

I’d definitely go after the 3-4 unit. Only time your going to be able to get one for almost zero down. Especially if you go full sellers concessions in the offer.

Doubles are done a dozen and after you get rolling you’ll be able to buy plenty of those

@Tim Delaney

Paula Kay from the Lancaster branch has been my go to for years

@Tim Delaney

Nope. Bank of Akron requires no seasoning

@Bijou Diaou

I would say your best option would be to partner with someone to get your feet wet. Or invest it in crowdfunding real estate platform until you build up some more ammo.

Never ran the numbers but you could probably buy a mobile home in a mhp and rent it and pay cash? But mhp’s are not really in my wheelhouse

@Isaac S.

Ehh took so much time though.

I remember telling myself on my first 3 unit that yeah couple hrs a day and I’ll renovate the 3rd unit in no time. 2 years later. If I would have just spent the 30k to contractor It would have been done in 2 months and it would have almost been paid back minus 8k in the same time frame.

@Nathan G.

Two parts

Master key system.

I have one key for every main entrance and each unit. 1 key is way better than 10+

Mechanical screw to the side of the house lock boxes.

1 per unit and 1 for myself and people I send to do mx and repairs

For the unit lock box I give just that unit the code and explain to them that if they come home hammered and can’t find their keys I’m not coming to let them in. So in each unit box is 1 common entrance key and unit specific entrance key. It’s up to them to put back if they use it.

For my lock box I have 1 common entrance key and 1 per unit.

So example. I was in the outer banks and my tenants at one place said the fridge finally died as the freezer. The same week I had another unit call me to say the toilet finally took a crap literally.

So i called my local appliance company and ordered a new fridge to installed next day and paid over the phone. Tenants were not going to be home so I have them the code and they installed.

Same with plumber. He changed the toilet out and some minor piping.

All this was done while I was sitting on the beach drinking some Tito’s and tonic.

I’d say my third favorite system is electronic rent collection with cozy. I set back and collect. If they are late cozy auto fees them.

4th. Even though I live within almost walking distance of my properties it’s stated in my lease that all mx request are to be done via email . It also states that without photos and a video request will not be answered.

Then I just refer to my first favorite system and send over my people and give them the code.

@Isaac S.

Yes I forgot to include I have a Marriot chase cc that has a constant 4% interest rate because of military orders. I have a limit of 30k and use that for non cash rehab cost and rack up the pints for free vacas.

Same with Home Depot and Lowe’s. I get the 10% off use the no interest for 6 months.

I prefer maxing the heloc when I have to because my credit score doesn’t really change compared to when I load up a cc.

@Kristen Buckley

I forever until something changes will buy in north buffalo. Most properties still hover around 275-325

If you buy a north buffalo double and total rehab under 240k and rent market 1400-1500 a unit you can cash out almost all of it.

You may have to eat some of the rehab for a little bit as you get more properties it’s easy to pay back really quick. I have seen an influx of ub students renting in north buffalo as over the years main st has lost a lot of “amenities” that brought the there.

If you have equity in your current property instead of refi call pentagon federal and apply for a non owner occupied heloc. They do 80% ltv on non owner.

I like heloc better than cash. And you can write off the interest.

As far as Andy , I don’t think k he is on bigger pockets.

@Kristen Buckley

Nice. UB can be tricky as the brrr method won’t work 85% of the time. High turnover rate. People do kill it over there renting per room. They also find any way to creat addition rooms and limit communal space.

But I do know one person Andrew Sauer who is the king in that area. He owns like 63 properties in the direct area.

I asked him how he acquired majority of them.

He literally door knocks and has bought 95% of them seller financed at marginal rate. He then cash out refi’s to a commercial loan through bank on buffalo.

So ive been on this forum for years but guess never sat down and shared my story. I'm from Buffalo NY. I have 2 beautiful children and an amazing wife. I'm 36 years old. I've been in the USAF Air National Guard for 18 years. My day to day job is a Detective with the local police department. I guess my journey started when I finally wanted to stop renting and a place of my own. House 1 - 2013 I was searching and looking for doubles in the Buffalo area. In my mind I was like, I can live for free. My wife's coworker told her about a 3 unit that their family was selling. I checked it out made an offer of 155k with 7500 in sellers concessions and they accepted. I bought it with a 30 year fixed VA loan at 3.25% interest and didn't put a cent down. The second floor was rented under market. The 3rd floor unit was vacant and needed a rehab. The first floor was "livable" but I thought it was going to be easy remodel. Day one I gave the second floor tenants the option to accept the rent raise to $1000 a month or vacate. They choose to leave and found new tenants in one week. This part of north buffalo was the up and coming neighborhood. Tenants were easy to find. Up until 2016 I slowly remodeled the entire house efficiently. Windows, roof, mechanics, paint, etc. I got the 3rd floor up and running and rented it out to two tenants that are still there. So at that point I was cash flowing about 1000 per month but after learning I really wasn't. In total I invested about 60k into the house. My wife was telling me about her childhood neighbor who has been investing into real estate for years. Being young and dumb in my mind I was like yeah ok like this old dude knows what he was talking about. So I put it off for a while and them finally approached him to talk. His name is Nick Sidoti. After talking to him at his house he handed me a couple of his books and his program that he has developed back in the 70's . Nicks program changed my entire world. Being the expert he is I was able to set systems in place so I can actually make a boat load of money without really doing anything. His course not only helped me learn to acquire new investment properties, but to effectively manage them. I cashed out refinanced my loan to 221k and effectively got most of my original investment back turning the mortgage to a conventional 30 year fixed at 3.75%. My wife and I decide then to reuse my VA loan to purchase our single family house with zero money down. I rented out the our old unit for 1450 a month. Around that time I told myself this is easy. If I can by 1 property a year the next couple of years my children will never have to pay for college. I used the techniques from Nicks course and applied for a heloc on my first house. The bank came back with an appraisal of 400k so I received a credit line of 110k. I then have used this credit for my down payments and the rehabs House 2- 2017 2 unit buffalo paid 119k with 2% SC 80% ltv 5/5 arm 3.875% interest I invested 3500 literally installing in unit stacked laundry in a closet for each unit Rented each unit for 850 a piece. This house wasn't in the most desirable neighborhood and one of my tenants was a pita. So I called my agent and said lets get rid of this. Looking back I wish I would have kept it but I guess it was more nervousness that made me sell. We put it on the market at 139k and received 3 offers after the first open house. My agent called me into his office to go over the offers. offer 1 - 162 conventional loan 50% down offer 2 - 165 fha loan offer 3 - 155 conventional So I took the 162 conventional After this sale I had to travel for the military for about a year. My buddy told me about bigger pockets. I literally listened to every podcast. I learned a lot but also made me revisit Nicks course. Even though it was developed a while ago, his teachings were the same. House 3- Fall 2018 sfr in the canisius college area Paid 140k with 2% sc 80% ltv 5/5 arm @ 3.875% rehab 13500 rented $1600 As soon as it was rented I did a 30 year fixed cash out refi and got a check back for my entire down payment and 10k of my rehab. House 4- Fall 2018 2 unit north buffalo paid 219k with 2% sc 80% ltv 5/5 arm @ 3.875% rehab 16800 rented 1350 and 1500 As soon as it was rented I cash out refi'd to a 30 year fixed and got my down payment back and my entire rehab. House 1 - 2019 spring I brought all the units to market rent unit 1 - 1500 unit 2 1500 unit 3 1000 So now I'm sitting on 8450 a month , heloc balance of zero , and cash flow of 4450 per month. So I went on the hunt again After looking at 100 properties I finally made a deal. House 5 - Current project 2 unit north buffalo Paid 215k with 2% sellers concession's 5/5 arm 80% ltv @ 4% Rehab 75% completion 26k Will rent for 1350 and 1500 The second it rents I will cash out refi 30 year fixed. I have gotten the brrr down to 3-4 months from buy to refi. I have learned a lot during these years I don't do my own work anymore Time with my family is the most important. If people are willing to give you advice take it. I probably would have never approached Nick. And never looked at this site. Always be willing to learn I believe learning to be an effective manager is more important than learning to buy properties I don't have a team but have my go to people for everything I need to do. Because of this I literally don't spend anytime on my rentals but looking for the next one. When I receive a mx request I check it out and then send the appropriate person to resolve. My systems All payments are done electronically thru cozy All background checks by rentprep All listings done through turbotenant Buy all properties on mls. Not every deal is a good one. Patience is what works for me All documents are done through authentisign I put mechanically lock boxes on each property. 1 per unit and 1 for my people When I buy the house I fix and or replace everything that will break within 10 years Heavily screen my tenants No property management - yet On every rehab I act as the gc and subcontract everything out. Day one I build the contarcts, time lines, and show up to sign off and pay once the job is done. I don't buy any fancy toys or live an expensive lifestyle. I don't spend any of the rent money coming in, but will occasionally use it for family vacations I save 12% of the gross rent and transfer it to a different account. 5% for future vacancy and 7% for future mx and repairs. Don't accept quick money Ive never used hard or private money On an average month I probably spend 3 hrs a month even thinking about my investment properties. My current model in the area I invest works. Ill keep doing exactly what I'm doing until that changes. I live within a 5 min drive from all my properties. I have a personal goal of 200k cash flow per year. But I'm in no rush. I figure this will pay for my children's college and when their done help my wife and I retire comfortably. After my current project I'm taking a 1 year break to hoard my cash to give me more power to buy. I know a lot of this is vague but feel free to message me anytime if you have a question.