All Forum Posts by: Casey Groves

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jersey City.

Purchase price: $335,000
Cash invested: $30,000
Sale price: $469,000

Bought and held this property just before the housing bubble while other houses in the area went up for short sales. We managed it long distance from New Orleans starting in 2010 and sold it when the market was more favorable for sellers.

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

The fact that we could own something and not just pay rent and that the monthly payment would be lower because of the tenant's part of the bill.

How did you add value to the deal?

Laid a new foundation and finished the basement apartment. Redid porch landing. Put on new roof. My wife did wonderful landscaping in backyard.

What was the outcome?

We sold it for a good price.

Lessons learned? Challenges?

Buying high. Managing long distance without a property manager.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Al Cupo did a great job selling this property for us!

Thanks so much everyone! I was hoping I'd be 5 duplexes away from financial freedom. Five'll definitely get me closer, but 10 sounds like it'll get the job done. I'll definitely keep my day job for now. Thanks again! Much appreciated feedback.

So I'm wondering how much cashflow people generally find they can clear per month for each BRRR property they are doing. Let's assume you've bought a house at a fairly good price either off market or on the MLS. There's a loan I can work with in my area to purchase and rehab houses for low money down (and then refinance out after the rehab). I just want to know how many BRRR duplexes, 4 plexes or single family's it will take to get to $4000 per month which will get my family to the other side of the Rat Race given our current cashflow vs. expenses breakdown. Would love to hear your thoughts on this. Thanks so much

Thanks you all. This is very helpful! 

I figured but wanted to make sure so I could respond with my best foot forward. Thanks. Very much appreciated. 

I've been in the multi-family market for duplexes to 4 plexes, but now I'm wanting to pursue something in commercial property with a larger building like somewhere between 6 and 10 units that can be used for Short Term Rentals in my market. The broker asked me to tell him "minimum / maximum deal size." What does that mean? Is that the price or something else? Please let me know what you know about this. 

Thanks so much

Hi Everyone, Thanks for all the comments here. I did some number crunching on this, and the cash flow I could potentially get didn't seem worth the risks and the life changes it would entail (moving my family to a completely different market). However, I'm thankful for your insights and great questions. I think this is a very fruitful conversation. I decided to try to find a deal closer to home and find something more in my price range without needing private investors like an FHA owner occupied Duplex that could have some good cash flow looking to possibly Airbnb the other half. Maybe my next deal I'll try partnering with someone or finding a private money loan to use on a renovation project here.

@Casey Groves

Sorry about that little added bit at the end of my post. Looks like I can't go back and edit it.

Hi All, I'm in a situation where I'm discussing purchasing this property from the owner of this property. The annual cashflow is $112,000 in the clear. There is a management company that keeps the units occupied and handles any minor maintenance. That cost has already been factored into the cashflow number.

I'm looking for financing support for the

%50 down payment the seller is asking for. So I'm looking for 800K for the down payment. What kind of terms could I get on this, so I can factor that into the estimated numbers? I have about $50K I could use as a down payment. Is this possible and who do I talk to about a loan on this?

Thanks so much

50% down payment that the