All Forum Posts by: Charles Maddux

Thanks! I appreciate it!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Winter Park.

Purchase price: $455,000
Cash invested: $93,000

Duplex that needed some love! Fully renovated both sides and ARV is ~$650,000 I was able to increase rents and get good cashflow

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

I wanted to invest in an area that is rapidly appreciating that has rents high enough to also cashflow. This was also a value add opportunity and I am excited about the forced appreciation.

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

MLS, Zillow actually. We used a real estate agent. Megan Blair Torres who was excellent!

How did you finance this deal?

Traditional financing, 15% down, 30 year amortization

How did you add value to the deal?

We redid the kitchens, bathrooms, put up a new fence, and installed new windows.

What was the outcome?

Rents were able to be increased from $1200 a side to $2100/side. The market obviously helped with this too! We bought the property for $455,000, put in $93,000 and now its appraising for $650,000.

Lessons learned? Challenges?

Find a good contractor. It is important to be decisive as rehabs can take forever if you are not efficient

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

I would highly recommend Megan Blair Torres, my real estate agent! She was just simply the best and I continue to use her now. Also Robert Johnston from US Bank is very easy to work with.

This is a fantastic post! If I had read it last year when I got started I could have avoided some very frustrating/expensive mistakes! I appreciate the info!

Investment Info:

Office Space commercial investment investment.

Purchase price: $689,000
Cash invested: $50,000

Exciting deal! Excellent cash on cash on cash return.

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

I rent this commercial space to my business. I moved my business from where we were renting before to this location. I now get to build equity and pay myself in another way through the business.

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

LoopNet

How did you finance this deal?

People's Bank

How did you add value to the deal?

Full renovation & update interior/exterior

 Hey Michael,

I do manage 3 of my units currently, but adding 9 more plus coordinating renovations and looking for new deals is tough with everything else on my plate. I have a full time job working 50 hrs a week and a new baby! Truthfully, the money its going to cost me is worth it to spend more time with family. My long term goal is to be as passive as possible with my real estate investment with multiple units covering my monthly expenses. That being said I have enjoyed it so much that I may stay investing actively and make it my full time gig. I'll keep you posted ;)

 Thank you so much for taking the time to answer my query! I will definitely check out multiple PMCs and look over their contracts. I love your advice! This year has been a BIG learning experience and I am happy to put in the work. As I have been managing my own properties up until this point, I have A LOT to learn about working with a PMC. After reading your response, I am sitting down and writing out of a list of questions for interviewing PMCs. I'll try to find some examples of good PMC contracts and use them as a guide. 

I reached out to my lender and given my plan to flip a couple of the single family homes, it may make more sense to divide the loans upon purchase. He is working on an estimate for how much option would cost. 

PS: I took your advice and I am checking out several quotes for a commercial blanket policies. 

Thanks so much for all the valuable info! The Chattanooga area has changed/grow a lot in the time since I lived there 10 years ago. I will definitely have to look into Abode Property Management.

 I have not heard of partial lien release as a strategy! A couple of the single family homes that come with the deal are in pretty rough shape and would work better as flips than buy and hold based off my numbers. I will definitely need to look more into this strategy and talk to my title company. I am learning my primary investing strategy, but I am looking primarily at small multifamily buy and hold properties for long term rentals. 

Thanks Bob! Yes I'll be excited to see the answers as well. Maybe I should have just posed one question to start!

Hey everyone!

I am new to real estate investing. I have only been at it for about a year now. Got 3 units under my belt and I have been loving every minute (well most anyway) of diving into the awesome realm of REI. I recently got a 9 unit bundle deal in Cleveland, TN under contract. I live in Washington state and it is my first time investing in Tennessee so I am still trying to get my team together. I am very excited, but I am realizing that I will be wanting to get a good property management company to help me out. Does anyone have any recommendations?

Also the deal has 4 separate properties (my first time buying multiple properties at a time). Any tips on how I can get insurance coverage that is affordable, but is also flexible so if I sell one of the properties it can be easily removed from the policy? 

Would you recommend separating the loans with my commercial lender? 

I would love to connect with any investors in the Chattanooga area. I am trying to learn about the area. I have come across some deal that did not work for me, but other investors with more capital may have loved those deals.