All Forum Posts by: Bill Boudreau

Weathertight Roofing gets my recommendation.  I just had them replace the roofs on a 12 unit and 33 unit property I own in Indianapolis and they did excellent work.  

Great to hear some feedback on markets outside of Indianapolis.  I've got a couple of multifamily in Indianapolis, but have not seen a decent deal in the last year or so.  So now I'm expanding my search criteria.

Hi @Reed Meyer just thought I'd add my opinion.  I completed my training and got licensed here in Utah a few months ago.  Take a look / listen to the Tom Ferry, Tim & Julie Harris podcasts.  Lead generation is hard, if you're a part time agent, it's 10x harder.  I've found that these podcasts focus on the things you need to do to actually make progress.  You might not agree, and that's fine. But, remember that 87% of agents are out of the business within the first 2 years. So, you need to find a way to generate business, or do something else....

If you've not given much thought to the brokerage that you want to work with (in Utah you have to be affiliated with a brokerage, not sure about Illinois) you should start thinking about that right away, you need to find a good fit.  Also someone that is willing to take on a part time agent.

Good luck, this has been way harder than I thought it would be.

@Eddy Wehbe My strategy is the same, find a good deal that meets my criteria.  If it doesn't, then move on. I've been investing in multifamily (20+ units) because there's at least an opportunity to force appreciation by increasing value / rents.  

The response by @Joe Villeneuve made me laugh, but he's not wrong. I'd add that, sometimes the best deal is the one that you don't do, right now in most markets SFH inventory is very low, so prices are high and deals get snapped up quick.

Good luck in your search, and don't give up, right now you've got to look at a bunch of deals before you find any that are interesting.

I made the decision to invest out of state a few years ago.  I bought a 12 unit in early 2017 and a 33 unit in 2019, both of these properties are in Indianapolis. It’s critical that you establish relationships with brokers and property managers that are reliable and trustworthy. 

Is your current rental a multifamily? I had a bit of an adjustment when I bought my first one, deal analysis, financing, purchase process, and due diligence were all a little different from SFH.

Overall, I’ve been happy with my decision to invest in multifamily and going out of state does have a little more risk, but that can be mitigated with solid relationships. 

Let me know if you’d like more info, glad to help out another Utah investor.

Interesting discussion. I’ve been looking to refi a property using Fannie Mae small balance program. Rates and terms seem like a great deal right now.  My loan broker is still thinking we can get it done in 60 days or so, not sure it’s going to be that quick.

In my case, I’m just evaluating the benefit of refinancing now, vs the costs and prepayment on existing debt. 

Jon, congrats on looking at multifamily. I've used the HELOC on my primary residence to purchase a 12 unit about 3 years ago, and a 33 unit in January 2019. I believe it's a good strategy, but only for the right property. I'm pretty conservative so I wanted to make sure the deal was in a good location with a value add component.

On the 12 unit, I partnered with my son.  We were also doing a flip at the time, and when we completed / sold the flip, the profits covered about 1/2 the amount I'd used as a down payment for the 12 unit.  

The 33 unit I purchased on my own. I've been able to significantly increase rents as units have turned over, and also added a RUBS to help cover the water / sewer / gas costs (electric is separately metered). Starting to look at cash out refi options to pay off the HELOC and get ready for the next purchase.

My thought on using a HELOC are to make sure you have a plan to pay it back. If you can't replenish your funds that way, you're going to run out of money at some point.

Also, keep in mind that by using a HELOC you're essentially doing 100% financing on the rental property. There's always a cost to the funds you're putting into a property, you're either going to pay interest on your HELOC, or you're going to have to take the money out of another investment. You've got to make sure you're satisfied with the ROI.

The property I acquired in Indianapolis last January was using Jetz. They seem to be doing fine, but I’ve only had it for a year. 

I’ve got another property that I’m considering moving to a vendor. I’ve gotten quotes from Jetz and CSC. Both look to be very comparable. 

Not sure if either or both of these companies do business in Cincinnati?

@Zayne Ruth Lots of good advice in previous posts to try investing in your local area first.  If you can find a deal that works, it's a great way to get started.  Are you going to the Northern Utah Real Estate Investor (NUREIA) meetings?  First Tuesday of each month in Ogden.

If you decide to invest out of state, it's probably going to cost you a little more in expenses and it feels risky at first.  Good property management is crucial.  

After doing one flip in Utah (spent months looking for a deal), my son and I started investing in Indianapolis.  We've had a 12 unit for ~3 years now that's doing well, and I just bought a 33 unit last January.  Just make sure that you plan on spending time in whatever city you decide to invest in, you have to build relationships and learn the area.  Also, don't buy cheap properties in bad neighborhoods, it usually doesn't work out well for out of state investors.

@David Ripplinger Congrats on your first Indianapolis property.  I'd be interested in hearing more about that deal if you didn't mind sharing?  

Tim O’Brien, Zipfel Capital. They’re located in Cincinnati. I haven’t yet used him on a loan, but he’s gotten great reviews and I almost used him on my last 33 unit in Indianapolis. Ended up using a local lender due to needing to close quick.