All Forum Posts by: Carini Rochester

I use CashApp. Its convenient and easy. The tenants seem like it. I don't like that it only lets me use one bank account. I have two bank accounts now, and will probably have more as I get more properties. So, I have to deposit the money into the one account, then transfer it into the correct account for that property. 

My newest tenant, (office space in small commercial building) uses automatic deposit. Its automated and easier on their comptroller.

I find that the 1% rule doesn't work well in Rochester. Our real estate taxes are too high! You need 1.5% or 2%, or 1%plus $500, something to cover taxes. I bought a single family in a Rochester suburb for under 100k, rent it out for 1275/mo. and just barely cashflow. Other aspect are good, though. It's gone up in value, my tenant has no thought of moving out. I'll never hit 5% vacancy. I'll raise the rent next time the lease is up.

My guess is that the rents might be higher than you're estimating. 

Conventional loan for a fixer upper may be tough to find. Then once fixed up you'll pay closing costs again (although on that one those costs can probably be rolled into the financing.) I don't think you exactly get 'pre-qualified' for hard money, but it doesn't hurt to talk to some people so that they know you and what type of deal you're hoping to achieve.

Look for an owner who will hold a mortgage for a year or two.

Meet a few contractors.

You don't need to have the team in place, as much as having a small pool of possibilities whom you have met and have some confidence in. 

I'm trying to put together investor information for two people who have expressed an interest in investing with me. They have more money. I have more time and expertise. However, I've never presented information about a deal to an investor before. I have a specific property in mind and I've started writing up what I think I want to tell them, but I would love for someone who has done it before to advise me.

I'm trying to understand 'preferred return.' Could I also get preferred return if I put up money too besides my time and effort?

I'd love for someone who has done it before to look at what I'm writing and give me some advice.

I bought a three bedroom house at Auction.com site. It was in pretty good shape. Its definitely a risk to buy without getting inside. 

I painted interior and exterior. Enlarged an opening between the kitchen and family room. Installed new flooring in kitchen and family room. New roof. New furnace.

I put it on the market as a flip, but the offers were too low. I could have broke even by selling. 

I rented it out. Its a nice, cash-flowing property.

I refinanced, got my money out and its been making money ever since.

Purchase price: 62,000

Fix-up costs:   16,000

Was able to refi 0.75x 80,000 = 60,000 mortgage. I also took 18,000 with a HELOC from my own residence.

The property is in Greece, NY

@Martin Grizzanti

Thanks for your question.

This house is between Portland and Carter, a little bit north of Avenue D.

I read your profile. Love your Goal, 30 by 30. I hope you meet or exceed!

Thanks for your question and comment. The property appraised for 28,000. My personal view is that the banks want low appraisals in this area to cover their perceived higher risk of dealing with a less stable, generally lower income population. Houses sell in this neighborhood all the time for 50,000 - 70,000. 

I see your investments are in the U of R area. That's a much more stable neighborhood with higher property values than the northeast neighborhood I'm in.

@Maria Guevara

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $22,500
Cash invested: $10,000

3 Bedroom Two story, city house, urban area.

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

Low cost way to get into 2nd property.

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

Foreclosure property on Auction.com. High bidder.

How did you finance this deal?

Pulled money out of my primary residence with a home equity loan.

How did you add value to the deal?

Drywall, paint, kitchen cabinets, new floors.

What was the outcome?

BRRRR failed as the after repair appraised value was lower than I expected. Rent covers all monthly expenses and provides some cash flow.

Lessons learned? Challenges?

Banks appraise quite low in these depressed areas of Rochester. Makes accomplishing a BRRRR almost impossible.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $10,000

3 Bedroom ranch

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

I was anxious to get started investing. Starting small. Hoping to grow.

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

This was a foreclosure being offered on Auction.com. I was the high bidder.

How did you finance this deal?

My partner and I each put in 50% of the needed capital and manpower.

How did you add value to the deal?

Cleaning, painting, new carpet, new kitchen countertop, new roof, new furnace.

What was the outcome?

BRRRR.
Got our money back and I bought out my partner. One tenant for five years. Pays on time. Cash flow.

Lessons learned? Challenges?

We were hoping to flip this but didn't get the offer we needed. I'm happy to hold this.