All Forum Posts by: April Vogt

Proud of making a ton of seller financing offers way outside of my traditional market (I cant remember how many) getting several under contract, being able to pass on a the ones that didnt make sense and getting  a few more by connectind with our realtors. Proud of struggling through a massive renovation of one of said properties during the highest lumber prices ever, and learning every step of the way! 

Investment Info:

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

Purchase price: $209,000
Cash invested: $37,500

Contributors:
Amanda McKane

This well taken care of 4 plex was purchased with 2 partners in the beginning of 2021 through owner finance, terms of 17.5% down, amortized over 30 years at 6% with an 8 year balloon. We were actively offering in the area on potential properties to be used as Airbnbs or other STR, & found this a stable property to complement our more risky endeavors. Projected cash on cash return was slightly above 14%, now 6 months into ownership we will be able to run more concrete numbers.

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

We had some riskier investments in the same partnership and wanted to complement those with a more stable investment

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

We found this property had been on market for quite some time, yet the numbers made sense. Upon speaking to the realtor, he indicated seller financing was a possibility and the owner was liquidating several properties in the area and moving away. We decided to offer a few options to the seller and met in the middle

How did you finance this deal?

Cash from 3 partners, spilt equally. I personally used a Heloc for my portion

How did you add value to the deal?

We haven't added any value to the property ourselves (yet). The previous owner was a master electrician and had upgraded all electrical systems and the property over the years-the clearly had a pride of ownership. The value was in the contacts we received from him, and our home inspector, who also runs a handy person team in the area.

What was the outcome?

Closed in April & are now 6 months in! We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

Lessons learned? Challenges?

Potentially choose a bank local to the area you are investing in-we made this harder on ourselves by not having a branch nearby. We also learned to lean heavily on the government assistance program that we contract with (2/4 of our units) Once we learned the ins & outs of their program it made communicating with our inherited tenants much easier

Investment Info:

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

Purchase price: $209,000
Cash invested: $37,500

Contributors:
Amanda McKane

This well taken care of 4 plex was purchased with 2 partners in the beginning of 2021 through owner finance, terms of 17.5% down, amortized over 30 years at 6% with an 8 year balloon. We were actively offering in the area on potential properties to be used as Airbnbs or other STR, & found this a stable property to complement our more risky endeavors. Projected cash on cash return was slightly above 14%, now 6 months into ownership we will be able to run more concrete numbers-however this is holding true. We inherited all 4 tenants and are converting them to our leases as their previous leases expire-so far we've had some headaches but nothing more major than any of our local holdings. In the future, as a more desirable unit becomes available-this was an original Sears Roebuck home, converted to multi-family over the years. It has good curb appeal and walkable to a cute downtown-we may convert to an airbnb. A refinance is planned within the next 3 years but will be secondary to refinances we hope to complete on our airbnb properties in the region, which are value-add

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

We had some riskier investments in the same partnership and wanted to complement those with a more stable investment

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

We found this property had been on market for quite some time, yet the numbers made sense. Upon speaking to the realtor, he indicated seller financing was a possibility and the owner was liquidating several properties in the area and moving away. We decided to offer a few options to the seller and met in the middle

How did you finance this deal?

Cash from 3 partners, spilt equally. I personally used a Heloc for my portion

How did you add value to the deal?

We haven't added any value to the property ourselves (yet). The previous owner was a master electrician and had upgraded all electrical systems and the property over the years-the clearly had a pride of ownership. The value was in the contacts we received from him, and our home inspector, who also runs a handy person team in the area.

What was the outcome?

Closed in April & are now 6 months in! We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

Lessons learned? Challenges?

Potentially choose a bank local to the area you are investing in-we made this harder on ourselves by not having a branch nearby. We also learned to lean heavily on the government assistance program that we contract with (2/4 of our units) Once we learned the ins & outs of their program it made communicating with our inherited tenants much easier

Investment Info:

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

Purchase price: $209,000
Cash invested: $37,500

Contributors:
Amanda McKane

This well taken care of 4 plex was purchased with 2 partners in the beginning of 2021 through owner finance, terms of 17.5% down, amortized over 30 years at 6% with an 8 year balloon. We were actively offering in the area on potential properties to be used as Airbnbs or other STR, & found this a stable property to complement our more risky endeavors. Projected cash on cash return was slightly above 14%, now 6 months into ownership we will be able to run more concrete numbers-however this is holding true. We inherited all 4 tenants and are converting them to our leases as their previous leases expire-so far we've had some headaches but nothing more major than any of our local holdings. In the future, as a more desirable unit becomes available-this was an original Sears Roebuck home, converted to multi-family over the years. It has good curb appeal and walkable to a cute downtown-we may convert to an airbnb. A refinance is planned within the next 3 years but will be secondary to refinances we hope to complete on our airbnb properties in the region, which are value-add

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

We had some riskier investments in the same partnership and wanted to complement those with a more stable investment

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

We found this property had been on market for quite some time, yet the numbers made sense. Upon speaking to the realtor, he indicated seller financing was a possibility and the owner was liquidating several properties in the area and moving away. We decided to offer a few options to the seller and met in the middle

How did you finance this deal?

Cash from 3 partners, spilt equally. I personally used a Heloc for my portion

How did you add value to the deal?

We haven't added any value to the property ourselves (yet). The previous owner was a master electrician and had upgraded all electrical systems and the property over the years-the clearly had a pride of ownership. The value was in the contacts we received from him, and our home inspector, who also runs a handy person team in the area.

What was the outcome?

Closed in April & are now 6 months in! We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

Lessons learned? Challenges?

Potentially choose a bank local to the area you are investing in-we made this harder on ourselves by not having a branch nearby. We also learned to lean heavily on the government assistance program that we contract with (2/4 of our units) Once we learned the ins & outs of their program it made communicating with our inherited tenants much easier

@Account Closed yes I am, feel free to send me a message & we can connect! 

Hi all!

@Matt Schreiber, I own a few vacation rentals in Lake Tahoe & Reno (as well as manage some for clients in the same area). I recently purchased 2 near Sparta, NC with partners. Once went under a massive remodel & we just got it live on Airbnb a few months ago, the other is still under remodel. We are actively looking for a few more *somewhere* in the north western NC area and would love to connect! Heard a lot about Blue Ridge & Elijah, Ga too so I am curious what you've found there and how your search is going. I am open to compare notes anytime! 

Hi Andrew,

As Dusty mentioned we have a few small meetups in the area, some in person & on zoom. We'd be happy to add you to the groups (I am not one of the organizers, but I will try to remember to send out invitations) I also was in the restaurant industry for over 15 years and have just recently switched to real estate full time. Congrats on the investment property, looking forward to connect soon!

@John Arpad Lok sorry for the late reply! Actually I would still be interested in investing in Tarragona, I just pivoted to domestic investing for the time being, especially since covid halted any of my travel plans for the past year. I was actually a student at the university there not too long ago, part of the wine program. The price points combined with incredibly low interest rates compared to the amount charged for a student room rental in the city center was pretty appealing. If I had a chance to get a mortgage in Spain I would definitely be interested in exploring more!

Depending on your market! I like Luke's approach above but I tend to add a few nights to those minimums, seasonally. In the Lake Tahoe Area,my 1 bedroom has a 3 night minimum in the winter & shoulder seasons and a 4 night minimum in the summer. My 5 bedroom has a 4 night minimum in winter & 6 night minimum. Our area is heavily touristic and has a healthy mix of families, other groups and young people looking to party, so we've found those longer night stays weeds out the bad apples. 

@amanda mckane