All Forum Posts by: Brandon Knudtson

@Ned Carey I’m going for the David Greene approach (I think it was him who said this a couple times in the podcasts). “It’s getting harder and harder to find good deals so you have to make a good deal.” Trying to come up with a plan to make this property a good deal in the long run.

@Bob Okenwa Thanks for the input.

@Ned Carey It actually isn't a great deal with current rents and while under seller financing for 2 years but I am going for the value add approach here and long term plan. Rents are roughly ~$100 under market rents. I want to come in and add W/D right away to each unit along with some cosmetic improvements to warrant getting those rents up (over time) to fair market rents. If I would be able to increase the rents and then refinance after those 2 years into a conventional loan at a much better rate, it would cash flow about $175-$200 ish/unit/month at that point. Am I being to optimistic with my plan? As a newbie, a plan like this may not even be possible. Any insight would be appreciated.

Hello BP community,

So I am looking into a potential deal on a 4-plex where the seller will finance for 2 years since the listed price is slightly over what I can get with a conventional loan (haven't talked specific terms with the seller since this deal is just in the beginning stages). My question is how do I make sure I can refinance the property in the 2 year window that the seller is willing to carry. Just trying to do my DD before jumping into a deal I don't fully understand how it works. Do I need to improve the property/raise rents enough over the course of the 2 years that a bank will give me a traditional loan at that point?

Thank you,
Brandon

@Aaron K. Just exploring all my options. I have been pre-qualified for a traditional loan which could get me 1-4 units (depending on location within my market, condition, size, age, etc). I would like to eventually build up a sizeable portfolio of rental units, I figured maybe I can get more units on my first deal if I can find some private money to help facilitate the purchase. I am looking into buying 2-4 units with a traditional loan and have put a couple offers in over the past two weeks. In the meantime, I'm just dreaming big and seeing if I could get 5-10 units on my first deal with alternative financing. Also, engaging in the forums has been a good way to connect to the BP community/people in my local market.

@Kellen King I guess I would be looking more along the lines of finding a private money loan. I would want the property to be mine in the long run, as opposed as to being just a property manager for someone else. I want to learn on the job by managing this first property myself while I continue to grow my portfolio long term. I guess seeking out a partner may not have been the most accurate phrasing in my original post.

@Aaron K. Thanks for the input

Hello BP community,

I am working on purchasing my first property by the end of 2018. I found a 6 unit package that peaked my interest in Phoenix AZ. Wanting to find a partner with some capital in exchange for me self-managing/sweat equity. Feel free to connect with me on here if you'd like to discuss further.

@Andrew Schmitt Welcome to Arizona! I made the move from Milwaukee, WI down here to AZ at the end of May. Glad to have moved from those Midwest Winters!

@Bob Okenwa it's near the Arizona State Prison Complex.

Hello all,

I am looking at potentially buying my first property here in Phoenix, AZ. My question is does anyone have any experience having a property near a prison? (this property is about 4 ish blocks away from it) Is it hard to get tenants into a property near a prison? Any insight would be helpful

Brandon