All Forum Posts by: Bradley Scruggs

@Kenneth Joseph Perfido it depends on your market you are trying to hit. We have a unit that we purchased used appliances for less than 300 dollars and our return on investment was greater for the year versus if we had newer appliances and charged a little more? Of course everyone wants stainless steel and new, but at the end if the day you won't have a problem finding renters if everything is nice. We also have furnished and charge more, so far we've had a 1% vacancy rate. Accounting for turnover during tenants. If you have any questions let me know!

@Nolan Neu congrats man! As I am sure you will be busy in recidency, I think your best bet would be to house hack a multi family. Purchase a 2, 3, or 4 unit property and live their while finishing up your residency. I know many pilots (2 years of flight school) that do that. They also have rented the other units to people in their class. Would be an easy way to be a landlord, homeowner, and investor all in one. Good luck!

@Kyle Andrade welcome to RI! Look forward to hearing about everything once you close the deal. My wife and I did the exact same thing, bought a duplex with VA funding, house hacked for a year and are moving onto our 4 unit with FHA loan to house hack. Within the year we will be working on a deal to utilize my VA loan to finance the next conquest.

If you ever want to chit chat or need help let me know! I love helping people even though I am fairly new myself. Chat soon man.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in N Kingstown.

Purchase price: $560,000
Cash invested: $130,000

2 duplexes located on almost a 4 acre lot in North Kingstown, RI

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

4 units are hard to come by in North Kingstown but to also have almost 4 acres aswell is a big plus. We intend on building another 4 unit on the property.

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

We utilized our realtors who found it on MLS

How did you finance this deal?

We used a FHA 203K Loan. We had to bring 3.5% to closing.

How did you add value to the deal?

With over 90k financed into the loan we focused on getting the property to livable standards. As we move forward we will slowly modernize each unit so we may obtain more income.

Lessons learned? Challenges?

To many to count. If you have a solid loan officer on your team I would aim for a. FHA 203k loan due to the low closing cost.

@Paul Ruhle that's awesome! Did you have to go through the town to add an extra bedroom and if the home is on its own septic was that a concern?

Love hearing the odd ways of finding an investment property. I guess I will find myself on all the apps now seeing if anyone is posting their house for sale.

Firat step is reaching out when you may not know something so good job man! What you haven't thought about is doing them all. 

I am currently active duty Coast Guard, I am classified as a full time student, and my wife and I are currently in the process of closing on our second multi family. So it can be done. I myself do not feel that I have the network to sindicate a deal however you can always learn and grow in real estate. I anticipate on sindication my first deal this year, with who, with what money, how. I don't have any answers to those questions but I will! Good luck in your endeavors, have any questions let me know

Good for you man! Stay humble and keep grinding. As a private you will find that you're going to be doing a bunch of BS tasking. This will allow you to utilize your free time by reading and gaining that extra knowledge. Networking to finding that next deal. You are already ahead of the game, just keep pushing and show your command you are a good soldier first and a good person second you'll move up in the ranks fast and get BAH in no time. 

Don't be a statistic and get married just to get out of the barracks. To many young military members get married to just get out of the barracks. There is other ways around it! Keep us in the loop with your endeavors man. Good luck

Congrats man! That is some awesome wheeling and dealing. I have had a lot of luck with personal letters as well. Being personable just seems to be beneficial

Well hello there! Welcome to BP and congrats on your first post. BP offers a wide range of resources and if you don't know an answer to a question, someone probably has asked it. Look forward to chit chatting! 

Corey, I did some digging and you may have a Co-borrower on a VA issued mortgage. The stipulation to that is the loan won't be "VA guaranteed" which puts the company giving the mortgage at risk. It does however let you add value from utilizing someone else's income or real estate history.

If you listen to podcast 51 from Active Duty Passive Income (ADPI) it discusses exactly how to develop a LLC and transferring the entity from your personal name to a LLC. I have yet to do it, but once tax season is over I will be able to give you some more insight on how easy or hard that process was.