All Forum Posts by: Carlos Diaz

I recently came across the opportunity to purchase several adjacent duplexes and quadplexes with a total of 12 doors. The asking price for the entire portfolio is approximately $800,000. On average, the units rent for $610. However, my local property manager indicates that the units can rent for $895.

What financing options are available for this type of deal? Should/Can we wrap all the buildings into one loan or keep them all separate?

Additionally, I see the deal as an SFR/Multi-fam hybrid, and I am having trouble setting a value for the portfolio. I know duplexes are usually valued/appraised based on comparable data, but this isn't quite the case, given the multiple properties involved. How would you estimate value for a portfolio of duplexes?

I would also like to note that I have not seen these properties yet, and I am unaware if there is any upfront Capex required.

@Dannielle O'Buckley

Daily action is all it takes. Make sure to take an hour or two out of your day to start learning / researching.

Educate yourself - Read, read, read. I recommend Long Distance Real Estate Investing by David Greene

Research - Pick a few markets that you are comfortable with, then do your own due diligence - look at things like, population growth, unemployment rates and economic outlook. Compare your market to the state and national levels?

Find boots on the ground - Once you are set on a market start calling local RE agents and property managers. Spend a couple weeks identifying investor friendly agents and property managers. Your goal is to find agents and property managers who currently work with investors.

Use your new, local, contacts to help you further research the market. If you think the market is ripe for investment, then use those contacts to help you search for deals.

Shift your mindset from “which market can I invest in?” to “how do I analyze a market area?” If your goal is to learn, then you will wind up analyzing several markets and find a winner.

Best part is you will be adding a valuable skill to your “RE investing” tool-belt.

“Give a man a fish and you feed him for a day. Teach a man to fish, and you feed him for a life time.”

@Jessica Hicks I am a RE appraiser who specializes in senior housing. While I have never invested in senior housing myself, I have seen tons of deals.

Feel free to DM me so we can chat further.

William,

I work at a commercial appraisal firm, specializing in senior housing. We work on senior housing market studies as well as valuations at various stages in the game (as if completed and stabilized, upon completion, upon completion and stabilization). Please let me know if you have any quesitons, we have tons of connections with lenders and operators.

Many Thanks,

@Brad Gibson

 Happy Birthday! 

Thanks for all the responses!

It is great to see some of the younger members here working hard and succeeding! Some days I wake up and I'm in attack mode. Others, I feel worried or discouraged that I have not made a deal yet. I know persistence is key, and by taking action, and involving myself in the business each day my time will come. 

@Lucas P. I did not mean to alienate or upset anyone. Where and when did you start REI? How did did you start? Where are you now? Would you mind shedding some light on your first deal?

I am a 25 year old from Miami, FL. I started inquiring about RE investing in January, 2015, and I took action the first week of March, 2015. I started a wholesaling operation and have been steadily sending out postcards to absentee owners with 40% or more equity in Dade County. I have not made a deal yet, but have had a decent response rate and I hope to see some motivated sellers coming soon. My goal is to build some cash through wholesailing and eventually purchase buy and hold investments. 

I want to know the strategies and goals of other twenty-somethings across the country? What are you working on on a daily basis? How long have you been investing? Where/how did you start? Where do you see yourself in the future?

Many Thanks,

Carlos Diaz

Sorry for the strange formatting! I tried to get fancy.

Thanks for helping. I started a marketing campaign this week, I posted details on the campaign in an earlier post.

Through my marketing campaign I uncovered a seller who is slightly motivated. He mentioned he might be heading towards divorce and may need to liquidate some assets. 

1. 1. The first property he is trying to sell is a 4/2 with an estimated ARV of about 145k, which is what he is asking for the property. The kitchen needs to be updated, but the bathrooms were recently renovated. He rents this property for $1,200/month. I am thinking I can probably get the house for less than his asking.
2. 2. The second property he owns is a town-home in homestead, FL. I note that this property is a 3/2 and currently has section eight tenants in the property, rent is $1,000, and the tenants have resided in the property for ten years. This property was built in 2006. He is asking $100,000 for this property. I estimate the ARV for this home to be between $110,000 and $115,000. I note similar town-homes with traditional tenants rent for $1,200 in the area.
3. The Third property is next-door to the first, and the details are the same. Section eight tenants, $1,000 rents, same asking and ARV.
4. * He owns all of the properties free and clear.

I do not have the cash for a down-payment, but I think I could tap into my network and bring some investors to the table. I have been brainstorming, trying to figure out a way to acquire all of the properties, or at least one of them. Wishful thinking, I know!

I was thinking if I can get the two condos for $150,000 - $160,000, I can borrow half of that from a family member, get a mortgage for the pair of properties, then sell one of the condos at the estimated ARV and repay my family member. I figure if I can get the property at $150,000, I can offer about an 8% return for in six to eight months. This is all assuming the town-homes don't need any work.

I can also scale this plan and try to acquire all three properties.

Does anyone have any other advice? Is my plan even possible? What other options might I have? Have other people been in similar situations?

@Chaz Reid no worries!