All Forum Posts by: Ashley Powell

@Joe Villeneuve

I calculated the CF using the rental property calculator on BP. I may have left it at 20% down though (I’ll check in a second). I was including water(electricity is metered separate for each unit), 2% vacancies (this area has an extreme shortage of rentals), 5% cap. Expenditures and 4% repairs/maintenance.

My 2 STRs have on average $5000 cash flow a month. My long term SFH rental has $500 cash flow monthly after expenses. This property is in a really desirable location, so looking big picture, think $100 per unit or 6% ROI would be acceptable to start with. As Brandon says, a base hit if you will. Thoughts?

Hey Everyone!

I am a newbie investor that currently has 3 properties. 1 long term, and 2 short term rentals, all single family. I closed last month on the newest short term rental property. This weekend a property was brought to my attention, as a potential new investment. It is a small multi-family property, that is is really good condition, with minor cosmetic upgrades needed (the kitchens and bathrooms are dated, but still functional). I am very interested in the property and have been running the numbers, but I need to make a decision quickly if I wish to proceed. This would be a buy and hold.

Here are the numbers:

unit 1- currently rents at $830/ rental potential unfinished- $1050/ finished $1300

unit 2- currently rents at $750/ rental potential unfinished- $850/ finished $1050

unit 3- currently rents at $550/ rental potential unfinished- $650/ finished $800

Total income: $2550/$3150

Purchase price: $350,000

Total cost to renovate: $80,000

After repair value: $480,000

Monthly cash flow is $627 with is 5% CoC RoI

I like the numbers on this deal, and this area is only expanding and growing so there will be appreciation over time.

So, I am looking into creative ways to finance this deal with little or no money down. I have been looking between seller financing and hard money lenders, but worry because I am a newbie investor and just closed on on my last deal that hard money lenders may not be an option. I am meeting with the seller this week and if I would like to bring up seller financing I would like to know a bit more or how I would run numbers or structure the contract. The property is in NC.

Thoughts on the deal, ways to get creative, or options between seller and hard money financing?

Thanks in advance BP Community!
~Ashley

Hey Everyone!

I am a newbie investor that currently has 3 properties. 1 long term, and 2 short term rentals, all single family. I closed last month on the newest short term rental property. This weekend a property was brought to my attention, as a potential new investment. It is a small multi-family property, that is is really good condition, with minor cosmetic upgrades needed (the kitchens and bathrooms are dated, but still functional). I am very interested in the property and have been running the numbers, but I need to make a decision quickly if I wish to proceed. This would be a buy and hold. 

Here are the numbers:

unit 1- currently rents at $830/ rental potential unfinished- $1050/ finished $1300 

unit 2- currently rents at $750/ rental potential unfinished- $850/ finished $1050

unit 3- currently rents at $550/ rental potential unfinished- $650/ finished $800

Total income: $2550/$3150

Purchase price: $350,000

Total cost to renovate: $80,000

After repair value: $480,000

Monthly cash flow is $627 with is 5% CoC RoI

I like the numbers on this deal, and this area is only expanding and growing so there will be appreciation over time. 

So, I am looking into creative ways to finance this deal with little or no money down. I have been looking between seller financing and hard money lenders, but worry because I am a newbie investor and just closed on on my last deal that hard money lenders may not be an option. I am meeting with the seller this week and if I would like to bring up seller financing I would like to know a bit more or how I would run numbers or structure the contract. The property is in NC.

Thoughts on the deal, ways to get creative, or options between seller and hard money financing?

Thanks in advance BP Community!
~Ashley

@Joshua McMillion thanks for the link!

Hello Everyone,

My name is Ashley. I am active duty military and leaving next year when my contract is up to focus on real estate full time. I have one long term rental property in Fayetteville, and an Air BnB in Southern Pines with a partner. As I plan to leave the military I have really started diving deep into real estate. Ideally, I would like to fix/ restore old homes, and sell or keep them as airbnbs. I am currently deployed, and am starting the classes next month to take my real estate exam when I get home. I would love to find someone to apprentice with. I want to swing a hammer and learn the finer art of restoring old homes. Eventually, I would like to find an investor, so I am interested in learning more about how investor contracts are laid out and how they work. Also, as I look to do this full time everyone says have a plan, I have a lot of questions about how in depth this plan should be and what it should include. Any advice or help is appreciated! 

Investment Info:

Single-family residence private money loan investment.

Purchase price: $225,000

House is a pet friendly Airbnb in downtown Southern Pines.

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

I have seen what AirBNB's make in the area, upon closer inspection, I realized most do not offer over 4 people, and are not pet friendly. If they meet any or all, they are not located downtown.

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

It was a quick purchase, when I saw it I knew it would go fast and would be the investors dream, so I had to act fast.

Investment Info:

Single-family residence private money loan investment.

Purchase price: $128,000

This is a 3/2 completely remodeled home with a large fenced in backyard. Custom granite countertops with soft-close cabinets in the kitchen. Bathrooms feature marble countertops, and the master has a custom 6 jet shower head. The yard features an in ground smart water sprinkler, and is protected by a 24 hour monitored home security system. The master suite upstairs, hosts two large walk in closets and a private porch.

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

I bought this house as a new flip in a rough area. It was a beautiful house and I purchased it as a primary residence. I realized the neighborhood was up-and-coming and when I moved decided to refinance, and keep the house as a rental.

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

It was the first day on the market and I knew I had to have it. I made an offer at the house.

How did you finance this deal?

VA Home loan with 0 down.

How did you add value to the deal?

Fenced in backyard. Did landscaping for the house. Removed old trees, and trees close to the house providing varmints an entry. Had in ground sprinkler system installed. Seeded grass and planted flowers and lined flower beds in front yard.

What was the outcome?

current rent is $1500/mo

Lessons learned? Challenges?

cost vs. equity analysis is a must. This was a personal home but for investments every fix needs to be weighed against the long-term benefit.