All Forum Posts by: Justin Fernandez

Hey Christian,

Some more detail would make it a lot easier to help you out.  What kind of letters? What's the content? To whom are you mailing to?

A good guide for navigating multi's is Larry B. Loftis's Guide to Investing in Duplex, Triplexs and Quadplexes. The references are great, but the loan stuff is a bit outdated. But since you're using the VA loan, you're still at 100% financing.

Note: Multi's stack in what a lender will pay per multi. Example: A 300K SFR does not Equal a 300K Multifamily in the sense that each unit is an income producing unit. You may qualify for the multi, but not the SFR.

*I am not a mortgage underwriter*

If you have no rental experience, they will take up to 75% of appraised rental value per unit to add to your income.

*I am not a Title Company or Lawyer*

At Closing, if you utilize a bank that has First Time home owner perks you could get a substantial amount back at closing depending on what month and what day of the month you close on.  In essence, you could get a check at closing instead of having to bring money. 

Your title company or lawyer will help you with that.

This is just a sample of the perks for using the VA loan and multi's.

@Simmy Ahluwalia

The property was gutted and then halfway through, the owner lost motivation due to one of the terrible D's.  

This complex is vacant due to none of the units being livable since the rooms are not finished.  As stands, the building still has the framing exposed. Since no one has lived there for quite some time, it will need to be re-inspected by section 8.

Depends on your offer to ARV. If it's listed, then they're probably looking for top dollar in whatever condition it is. How do you plan to add value to a deal you found on the MLS, that any other investor could do and just be the end buyer?

Just start by talking to him.  Let him know you're interested. 

Find out what he'd be willing to let it go for.  

Make an offer, add a clause that allows you to renegotiate dependent on performance of building during due diligence. 

You have to make him feel like you're a serous investor, living in his complex may not convey that but only time, relationships and persistence will get you what you want. 

REIA meetings is where you want to go.

The property is halfway rehabbed, with plumbing, flooring, and framing completed. The building is wired, but will need fixtures to wire into. 

Notes: With this property, you can leverage this property and buy adjacent properties at discounted rates. Other properties that owners are wanting to sell:

200 Troy St, 30314 (Open Parcel Lot Next Door)
192 Troy St, 30314 (Similar Building 2 Lots Over)
205 Troy St, 30314 (Across from Building)
*You can go from 10 doors to 40+ within 3 years. All properties are right next to each other*

Financials (Pro Forma)
4 (2bd/1bth)Monthly Rent: $ 3,664.00 (Section 8)
6 (1bd/1bth)Monthly Rent: $ 4,080.00
Total Monthly Rent: $ 7,744.00
Annualized Rent: $ 92,928.00(Buy and Hold Annual Income)
NOI (Expenses @ 55%) $ 41,817.60

Acquisition
Purchase Price: $75,000
Rehab Cost: $89,168.00
Closing Cost: $1,200.00
Total Cost: $165,368.00

Profit
Exit Values (Rehab, Fill and Sell)
Cap Rate @ 15% $ 278,784
Exit Value: 250,000, Potential Profit: $85,832
Annualized Rent: $ 92,928.00(Buy and Hold Annual Gross Income)

You can see pictures at www.redlionrealestate.com/10unit

Regards,

Justin

Hey, Welcome to BP. You're looking for the trifecta in a very specialized niche market. If you're going to use the VA loan, utilizing small multi, you're going to want to segregate those knowledge fields(VA Loan and MF properties) and know enough on your own to make the entire outcome favorable to your situation.

You're going to have to find the property yourself, then learn MF mechanics in deal analyzation simply becuase you need to know what a good MF deal looks like. 

Yes, your realtor can send you listings, but how many times are they going to do it until you decide on a property that's good for you? How quickly can you make a decision on location, numbers, then aesthetics? Knowing that will give you enough information to qualify a realtor in a few minutes instead of spending hours training one to work for you. 

You can just automate the process by having a realtor send you listings of MF properties in a certain location. Then taking the few minutes to decide wether or not you want to move on it. 

Just food for thought for a fellow veteran.

Yes. The last part of taxes is still owed. The contract is already signed? How much EMD did you put down? How much were taxes?

Jumped the gun there.  Any overdue balance is passed on to the new owner. Since the taxes are for the property, not person.  You can have a clause vetted by a lawyer for encumbrance on title to be released from the contract if it pops up. But in short no to balance and/or ask for a credit for overdue balance. 

Hope that answered all of it.