All Forum Posts by: Andrew Jolly

@Tim Delaney

Thanks Tim, I’ll look into that right away

Hi all,

I am 23 and I closed on my first piece of property that I have owned. It is 2 pole barn style buildings, each 30x40, one with concrete and heat, and the other with a rock floor (Cold Storage). I bought them originally planning to use them for personal reasons, but recently moved from home to Asheville, NC. 

I have tried renting them out for about two months now, and have had people interested, but have not gotten anyone to finish the application process. I'm charging a $25 application fee that is refundable if they are chosen as the tenant. My break even numbers is around 580 a month, and I finally got someone to rent the cold storage, but only for 6 months out of the year; which comes out to about $90 a month over the year.  The heated shop is still sitting vacant. 

I understand I probably picked too much of a niche property, and being in a low population area probably doesn't help.  But this one deal has put a bad taste in my mouth, and has not helped with getting my girlfriend on the real estate train. 

Do you guys have any ideas on ways I can turn a profit on the property? or even just some words of encouragement to get me through? Its fairly easy to manage this property from afar, my biggest problem is just finding a qualified tenant.

@Jeffrey Allenczy good to see you’re wanting to hold yourself accountable! I just moved to the area about a week ago, and would be setting a goal like yours but I just closed on a deal out of state less than a month ago.

My girlfriend and I are in the west Asheville area but will be moving down to Mills River here in the next month or so.

I’d still love to connect with some people who are passionate about real estate in the area. It sounds like Robert has something good going on in the works, he reached out to me when he heard I was moving to the area a few months ago.

Let me know if you guys get something setup!

Yes that makes perfect sense. Do you know if it is possible for me to pull a HELOC while I am owner financing it? My mom has the house completely paid off , so I see the potential for using that value in the home and putting it back into the property.

I'm looking to structure a partnership deal with my mom, and haven't been able to find a similar situation yet, so I'm hoping I can get some help here on the forums!

My mom owns a house that has been rented before, but for the last 5-10 years has sat vacant, and will need a lot of work. I'm looking to fix this property up for a rental property, but hoping I can do this without buying the property in the short term. 

The general idea of the partnership is that she (my mom) would provide the property, and I would provide the rehab costs, and profits from the rental property would be split evenly after taxes, maintenance, ect. and the payments on the rehab would come out of my half.  

The idea I had was to pull a line of credit off the equity of the property, but to structure it in a way to where my mom is not responsible for the payment. 

What is a good way to start structuring this partnership? I've had a couple ideas, but would like to keep this as simple as possible. Any help or ideas would be appreciated!

Thanks!

Thank you for the replies guys. I have looked into individual storage unit cost per square footage, and cold storage was around $.25 / SqFt. The pole barns sits on two lots, both of which would be purchased. They have room for more expansion, the rest of the lot is currently a garden for the current owner. It is not in a prime location (kind of hidden back away), but there is an agecent lot with a larger building.

Edit: parking would vary on what was parked there, the space is setup as a shop, so there really isnt set parking.

I've come across an opportunity that I almost cannot pass up, but I wanted to run the numbers by you guys just to make sure I'm not missing anything. The deal is 2 buildings, close to where I work and live. Both are 30x40 pole barn buildings. One is heated with concrete, and the other is a rock floor cold storage building. 

Purchase price: 45,000

Down payment: 9,000

Term of loan: 20 yrs (breaks down to a 252.75 payment)

Property Taxes: $900 / Yr, or $75 / month

Insurance: I'm not too sure on this one, so I will guess somewhere close to property taxes (1000)

Desired Rate of Return (cash on cash): 8% - $720 / yr, or $60 per month

60 + 252.75 + 75 + 84 + 28.25 (Maintenance)= $500 per month Gross income needed on 2,400 SqFt

So My question to you guys is:

Does $.20 per square ft / month, or $2.5 SqFt / Yr sound like a feasible price for storage?

My Plan is to use the heated portion as my personal shop until I move away in December.  I already have one person who wants to rent out heated storage for a motorcycle over the winter, and another individual who is already renting a space in the cold storage for a small boat ($75 per month).

I did not include utilities, mostly because I'm not sure what the cost would be. It is on natural gas, and does not have running water or sewer to worry about. 

Any responses would be greatly appreciated!

They could not establish enough lines of credit for me, the receipts I provided were not good enough to prove that I pay for some of my reoccurring bills

I have been in the process of purchasing my first long term buy and hold rental. I've spent the last month or two talking with a certain lender that I saw long term relationship with. After a lot of back and forth, he pretty much told me that the bank would not be able to loan to me. This was pretty frustrating considering the time I spent and the fact that they pulled my credit twice, dropping my credit score 40 points. 

In this situation should I continue to talk to other banks, or hold off for a bit and let my credit score bounce back?

I already have a property secured (I am buying it from my mom), so time isn't my first issue, but I don't want to wait 6 months to get into a deal. I have also considered owner financing, but that is not something my mom wants to do.

I have enough money to do a 10-20% down payment on both the purchase and construction loan. but was hoping to do a low money down option (3.5% FHA). I would like to stick with traditional financing until I can get my foot in the door and get a feel for the real estate arena.

I'm not sure if this is the correct place to be asking this, but my girlfriend and I are moving from Central Illinois to the Waynesville  / West Asheville NC area for work. Property search has been a nightmare as it seems to be a very hot market, both for buying and renting. We want to rent in the short term to get a feel for the area, from there we would like to start buying long term buy and hold properties in and around the surrounding area. 

So I have two questions:

Is the market too hot to be getting into right now? do you have any suggestions for finding good deals in this area?

Do you know where we can find a rental?! - it has been quite the process, and from what we have seen, it feels as if there is only a handful of rentals to rent. (This sounds good for the long term buy and holder, as it would mean vacancy would be low), but it is tough to get moved into the area. If you guys have any rentals in that area, or know anyone who does, please let me know!

My girlfriend plans to move down there in may, and I will be following her in December when things slow down at work.