All Forum Posts by: Brandon Turner

I agree, you would need a more active investment to pull this off. Or just get real lucky.

I like to think like this: If my standard is to pull off 100 per door in cash flow with property management in place, I would need to get 30 units to reach $3000 Per month.

So you could use your $100,000 to put down 20% on a $500,000 property. But is it possible to buy 30 units for 500,000? Maybe, but probably not in a good or even fair condition. So maybe if you bought an amazing deal, hired the right contractors and great property management, you might be able to pull it off.

Sounds like a fun challenge to me. But again, its not going to be real "passive" at the start.

Hey, I've heard a lot of news lately about SBA Loans and the government's push on banks to do more of them. Has anyone done these? Especially, has anyone received any SBA Line's of Credit to be used for purchases/repairs/etc on flipping properties? I have a few rentals with some good equity, but little "earned income" to get normal financing.

I know SBA does loans for new start-up businesses. I was thinking that might apply.

Ideally, it would be great to have a $50,000 line of credit to purchase some of the cheap houses around here and stop using expensive hard money lenders. I just don't have the income to justify a normal $50,000 l.o.c.

Thanks

I often do what Mark Yuschak does. I always keep an eye out for cheap/free washers and dryers and then offer to sell them to tenants when they move in. I've made a few hundred bucks this way, it gets the tenant their own washer/dryer, and I don't have to worry about maintenance.

I do always provide the fridge on my rentals, but they are pretty low income housing, so people wouldn't have their own.

Thanks Jon. So it sounds like it can be done. I guess I now just need to figure out how. Is this generally a city question or a county question? Probably both huh?

Also, currently, the units are on 2 separate parcels. So if I can get the units in tip-top shape, I may be able to sell off half the units and maybe pay off the original loan. Owning 12 units free and clear would definitely not be a bad thing.

Anymore thoughts anyone?

oh, also. Once you have that business card in use for a time it is so much easier to get larger lines of credit with the same bank. Good luck.

Try USBank if you have one near. I have two business C.C. from there and my wife has one. We have decent credit (right around 700) and was approved for around 5500 on each card. Both were new businesses, sole proprietorships, and had no problem at all getting those cards. You still need to get a UBI from the IRS, but that is instant, online, and free.

The best part, those don't report to your personal credit report unless in default. So if you rack up some (responsible) debt from your business (I use mine for repairs on the rehabs I am doing) your own personal credit score won't be affected.

Good luck

Hi Ya'll. I will very soon be closing on a 24 unit apartment complex in my town. I will be using Seller financing and like the deal a lot.

My realtor mentioned an idea to me and I thought I would bring it up on here, to see if anyone had any thoughts.

The apartment is actually 6 four-plexes surrounding a central parking lot. Ideally, I would like to separate these six 4-plexes into 6 individual quads, thus making the sale of them significantly easier and increasing the overall profit substantially. However, because the 6 units surround a parking lot, i don't believe I can separate them into separate parcels. So instead, my realtor suggested doing a "condo conversion" - BUT rather than converting the individual units into condos (which would probably never sell to homeowners in that neighborhood or town) I would use the same technique to turn each "4-plex" into its own "condo" to be separately sold to investors looking for a good investment. Make sense? There would need to be a HOA set up, who would manage the parking lot, property management, etc. In theory it seems like a great, complicated idea.

Has anyone heard of doing this? As I figure it, each 4-plex running at max efficiency should be worth $250,000. Thats $1,500,000 total in value. I am purchasing the property for $580,000. So the potential is HUGE if I can make it work. Any ideas? Anyone done something like this?

Thanks everyone.

Hi, I own a house which is situated at the bottom of a large hill. The house itself is fine, but the garage sits back further than the house so that the back of the garage is only about 5 feet from the bottom of the hill. This 5 feet of space is consistently mud, and it gets so wet that in the winter (rainy season) water runs through my garage quite severely (there is a constant stream through it).

I know very little about drainage. How should I fix this? Due to the neighbors garage being 6 inches from my garage on one side, and my house on the other, I cannot just dig a ditch for the water to run.

Would digging down a few feet, then filling the area in with gravel help? Or installing a sump pump? and how would I do that?

Any ideas or suggestions would be great. My tenants would love to use their garage floor again :)

Hi there, I have been dealing the past few days with a similar situation. I have a house that I am selling which has the post and pier foundation, surrounded by skirting. We have a good offer on the home, but the buyer wants the skirting replaced (we think it is asbestos).

Our City code allows for pressure treated plywood to be used, and it can be run right into the dirt. However, the buyer is using FHA backed financing, and FHA does not allow the pressure treated wood to touch ground (even though it is rated for such) but instead I have to dig a 4 in ditch around the foundation and fill it in with gravel. FHA is okay with the pressure treated wood to touch gravel, but not ground.

So thats what I am doing. I framed the piers with treated 2x4's and then ran the treated plywood around. It hopefully should satisfy both the City and FHA. But as John said, check with your city. Some areas will allow Hardi board (the 4x8 sheets) for skirting (FHA said they would allow this) but since Hardi is not approved for ground contact, my city does not. But maybe your city will.

Good luck!

Hey guys, Thanks for the input.

Uwe - I figured value by taking $70,000 NOI and then dividing by .085, which comes out to 823k; I'm pretty sure that's about right.

Vikram -I kinda feel the same way. This seller would never consider selling for what it actually is worth, because he would rather just do the work himself and sell it for much higher. I just wanted to make sure I wasn't crazy in thinking it might be okay to pay more because of this.

Eddie - I've struggled with this a bit too, but I have 5 units rented right now (mix of duplex and sfh) and it doesn't feel like much of a problem. I work for myself doing handyman work, so I've got a flexible schedule. I also think i'll move in and call myself the "live in maintenance guy" while I'm fixing it up which means I can handle landlording much more hands on but can always defer questions to "I'll talk to the owner". And it could be an adventure. If I decide to proceed, I'll definitely be needing lots of support from bigger pockets. I'll live on these forums :)

Thanks! Anything more I'd love to hear!