All Forum Posts by: Arleigh Campeau

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*This link comes directly from our calculators, based on information input by the member who posted.

So the owner of this building wants out, they are older and want to retire. They are willing to owner carry for me. They provided all of the info I put into the calculator. This is an 11-unit apartment building with a lot of potential for expansion in existing unused garages and rent hasn't been increased in years. I also believe the value is much higher than their asking price.  Obviously at the current rents and owners proposed financing terms it doesn't work. there is room for rent increase but not a ton. My question is how would any of you approach financing this? They proposed 25k down, 350k financed for 15 years at 10.5 percent. I like the owner carry, but I would like to propose terms that would work. Any suggestions on how to construct an attractive deal to the owner?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $77,500
Cash invested: $40,000

Rehabbing this one bedroom for an STR. Downtown location is perfect within walking distance of local bars, restaurants, and event areas.

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

Short term rentals can give higher returns.

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

MLS. It was listed for 115k, negotiated it lower based on low quality/old finishes and some building code issues.

How did you finance this deal?

HELOC from another property

How did you add value to the deal?

Fully remodeled inside and out, rockin outdoor area with mountain bike theme and secure bike parking area.

What was the outcome?

Still underway.

Lessons learned? Challenges?

Living in the property while rehabbing is difficult and slow. Cost of rehab is higher with inflation. Budget isn’t accurate.

Can anyone recommend a book list to start learning? I want to expand my knowledge on how deals are made and more on the financial and tax side of things. 
Thanks in advance. 

Thank you guys for these comments. Sounds like I have a lot more work to do!

I’m looking at the feasibility of a 50 unit multi family complex. This is my first look into multi family of this size. I’m wondering if anyone can ballpark the closing costs on a 4-5 m$ loan. Also, I have partners that can potentially fund up to 400k for the down payment. Is that enough to get into a property like this? Any help is appreciated. Thanks!

Isn't the HELOC interest rate high with the higher interest rates were seeing currently? I paid off my HELOC because my interest only payments skyrocketed.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $27,000
Cash invested: $110,000
Sale price: $229,000

Turned a wrecked and rundown house into a beautiful modern home. Mostly all of the work was done by my wife and me. It took a long time because of this along with Covid caused supply chain issues.

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

I saw an opportunity to use what little money I had along with my skill set to grow my money independently

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

It popped up as a foreclosure and the day it was listed we were lucky enough to be the first ones to offer on it. The bank would not negotiate.

How did you finance this deal?

Paid cash from a 401k loan

How did you add value to the deal?

The home is in a lower class area so we gave it high end finishes and and high quality work. We changed some of the layout to make it more modern and open feeling all to draw a higher class buyer and it worked. Most of the credit goes to my wife Candice for her thoughtful design ideas.

What was the outcome?

We asked a price that was higher than any comparable house ever sold in that community with much criticism. We got just less than asking price and the home appraised for 10k more than we listed it for! This was mostly due to timing with the post Covid market inflation. Overall the project was a success.

Lessons learned? Challenges?

I definitely will utilize more contractors in the future. I can do almost all of the work myself, but the time spent is more valuable than a dollar saved. The next project will be planned out better as to avoid rework and afterthoughts that caused re work. I would also like to use a partner or investor to reduce the amount of cash and or debt I have to put into the project next time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Desert mountain realty Sonja Almberg and Kenna Almberg were very helpful. The only real estate agents I would use in this area.