All Forum Posts by: Chevonne Woodard

Is anyone interested in a class action against this company?

Good day all! I signed a one-rate and a standard plan. They appear to cover nothing for the 1 rate. I was hoping to eliminate some of my policies that I had prior to hiring them, however they have informed me to keep everything. So, I've asked several times, how do I save with this program if I'm paying you 23% and have the same bills. They have not released any of my rent payments that they have collected. I was informed that my ID was unable to be uploaded to the system, which was holding up my payments. Tomorrow the funds are to be released. I thought it would be about $12k, however all back rent and current July rent have not updated in my accounting. Additionally, I've an apartment vacant for 5 months, they claimed 38 viewings with no interest. So, I stopped by the property to see the unit... it was dirty, damaged, and still had the furniture in it that the tenant left. They changed the lock box and refused to give me the code. After going into the unit and providing them the results of my findings they changed all the locks in the unit. As to restrict my access to the unit. It been over a month that I've been asking for access to the keys for storage areas at my property. No centralized database of information to give me an update. My tenants are complaining of incomplete work orders and some have threatened to move since they took over.

Thank you Eric, for your encouragement! I plan to continue expanding my portfolio.

Investment Info:

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

Purchase price: $164,950
Cash invested: $80,000

My First multi-unit purchase, requiring more investment than projected. A test in patience, positive thinking, and self-trust. Getting over the challenges with missed taxes during the closing by the title company to contractor nightmares required me to be completely hands-on, willing to do my own research, and remain focused accomplish my goal through to the end.

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

During the property review it externally appeared to be move-in ready. The cost, location near a city planned redevelopment, and rental income potential.

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

My realtor sent me this deal, I attempted to pullout of the deal prior to the closing. Allowing for Seller to cover $10k in assistance and $6k to support plumbing repairs.

How did you finance this deal?

Property was purchased through the VA Home Loan financing with lender credits, and Seller Assistance.

How did you add value to the deal?

Updates to bathrooms, kitchens, new roof, landscaping, tuckpoint, new concrete laid around the building, window replacement, aluminum caps on all windows and doors, door replacement, and completed basement finishing.

What was the outcome?

After locating a trustworthy contractors coupled with my own shoulder grease vacant 3 bedroom unit was updated and successfully rented for $1532 to ensure the mortgage and expenses were covered. Providing $100 in cashflow and allowed to exist property into a second purchase. Vacated unit is currently yielding $1611 monthly projected cashflow to increase to $1200, after added deductions. Property value is projected over $130k above purchase price.

Lessons learned? Challenges?

Hire contractors slow, fire them quickly, change realtor quickly / work with several, ensure your realtor understands your investment goals, and has solid team / build your own team of inspectors. It is difficult to get contractors in Fringe areas.

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

No, not for the purchase.

Investment Info:

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

Purchase price: $495,000
Cash invested: $19,000

2nd house hack, 2-Flat with an In-law unit created $300 a month rental rate increase pre-unit. Purchased with a FHA loan and $15k in Seller Assistance during a Sellers Market. Closing Cost and fees totaled around $8,750 including the 3.5% down payment to close this deal.

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

I conducted a property analysis projecting 38% return on Cash, and low rehab investment as building and systems were updated in 2015. Additional key factors for this deal were: prime location, unit size, number of bathrooms, existing tenant for immediate income upon closing, possibility of various rental models (short-term, student housing, and long-term), ease of room additions to floor plan with existing lighting and heat/cool vent layout.

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

I found the deal on Redfin, provided details to my Realtor Paul DeLuca from the Bigger Pockets' Network list. He was amazing to work with immediately setting up the walk through and connecting me with a complete team from financing to attorney and inspectors to get the deal closed in 30 days from offer acceptance. There was some back and forth leading to a $15k Seller contribution, they were motivated, as they were retiring and offloading primary and rental properties.

How did you finance this deal?

Through an owner occupied FHA home loan 3.5% down payment coupled with $15k in Seller Assistance.

How did you add value to the deal?

Made interior and exterior cosmetic updates coupled with building additional bedrooms to two units converting them from 3-bed 2-bath to 4-bed 2-bath. This improvement increased rent by $300 a month above none updated 3 bedroom.

What was the outcome?

Rental income covers 100% of mortgage, $200 current monthly cashflow is based on special owner occupied exemption I qualify for in the City of Chicago minus water/sewer, building utilities, and repair set aside funds, current tenants pay gas and electric. Once property is 100% self-managed rental occupancy monthly cashflow is projected at $1400, amount after applied property tax liability. Redfin has projects an estimated value over $125k of the purchase purchase price.

Lessons learned? Challenges?

There has been a small unforseen plumbing challenge that occurred after the weather broke. Which required time and working with several vendors however having warranty in place allowed matter to be resolved with little financial output.

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

Yes, I worked with Realtor Paul DeLuca (Connected via Bigger Pockets), Success Mortgage Zack Karp, and Attorney Aaron McHenry of Gurney Law Group.

Investment Info:

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

Purchase price: $164,950

My introduction to real estate, did the Live-in and renovate property strategy. I watched videos and have been looking at investing for years. Finally desided to test the waters with this property. What a horrible amazing experience. Many, many, challenges working fulltime and rehabbing building. Find good solid contractors, bad referrals, and tons of delays.

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

Location and cost were the initial items that appealed to me. Was $100k less than most buildings I viewed, that required work as well. So, I opted to take the deal... planning to BRRR this property to get some of my investment out of it. Used the calculator to analyze the deal. Did require more rehab then originally expected.

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

Found it through a realtor recommended by my lender. Wasn't the best experience.

How did you finance this deal?

Used VA loan program.

How did you add value to the deal?

Planning finishing basement

What was the outcome?

Live-in one unit, rent with cash flow in 2nd unit. Currently looking for next live-in property.

Lessons learned? Challenges?

Ask more questions, vet realtor and service providers such as Inspectors, I identified more issues or items inspector missed/ignored. If it doesn't feel right walk away. Fire contractors quick!

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

I'm in the market for a team to assist with real estate investment goals.

Got a partial rehab on a rental property needs two to three bathrooms and basement build out. Looking for professional and reliable contractor in Chicago.