All Forum Posts by: Chris Marshall

@Brandon Plombon thank you for the advice, im speaking with my property managers this morning before I go to sign a purchase agreement, I am hoping to have some better ideas about any rules or restrictions to senior apartments after speaking with them.

Hello all I would like to get your input on my first apartment that I will be putting under contract tomorrow. Its 12 units in total. 9-2bed/2bath 2-2bed/1bath and 1-3bed/2bath. Currently they all rent for $450 a month but haven't been increased in a few years. I think I could raise them to 550/525/575 respectively. Here is my issue though, the apartments are currently a "senior citizen apartment complex" right now if the rates stay the same the deal doesn't work, but if I can raise them they do. How fast would raise the rates if you even would? Is it unethical to raise the rates on a senior citizen complex since their budgets might be fixed? How do you negotiate this deal? Thanks for all of your advice in advance!

I want to make certain I follow the rules so what are the rules regarding talking about software that I am developing. Where and how do I go about talking about it and letting people know about it on this forum? Do I need to be a pro member or something? I dont want to just spam it out cause I know that is not classy and its very annoying so I want to make certain I go about it the correct way.

Mine, I used a spreadsheet that I came up with for my initial numbers. I took that spreadsheet with my calculations to several banks each telling me NO, for one reason or another. I kept refining my spreadsheet until I hit about bank number 15 or so and I finally had a solid set of data and had my speech all prepared and was confident in my numbers and I finally got a yes! That was about two years ago it was on a flip, I still own it as a rental and if I can sell it to the renter (like they said they would buy it at the end of the 16 month lease) we will make a decent profit off of it both as a rental and a flip.

I was speaking with some friends, and I was curious to hear some more stories. When you were looking at your first properties how did you figure out the financials? How did that play out?

I have been speaking with friends about my first few times that I analyzed deals and how I went about it. I was wondering if I could hear from others about your experience in analyzing deals, especially when you were a newer investor. New investors currently are also welcome to speak on your feelings about analyzing deals as well.

Investment Info:

Single-family residence fix & flip investment in Farmington.

Purchase price: $35,000
Cash invested: $120,000

Full remodel on a old Victorian style home. took months longer than expected, took far more money than budgeted, and I am incredibly thankful that i did it. After we were done it sat on the market for a while so we rented it out to a family that is supposed to be purchasing it in the coming weeks now that they have lived in ti for a little over a year. So we will see how that goes.

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

I was very eager to finally do my first deal and I already was a GC in my area so I decided to go with a flip.

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

My wife as a hairstylist actually has a large network of customers that she speaks to about how we wanted to get into real estate investing and one of them told us about this property and i immediately went to it and got in touch with the seller and got it under contract.

How did you finance this deal?

We secured a HELOC on our personal house for the down payment and remodel, then a conventional loan for the purchase price. We went over our budget in the middle of the project so we had to go back to the bank and refinance some of the money we had on our HELOC back into the mortgage of the property. As the tenant moved into the property we refinanced a portion of the HELOC into the mortgage for a second time. so i guess we BRRRRRR'd it. Bought it, Reno, Refi, Reno, Rented, Refi, repeat.

How did you add value to the deal?

Forced appreciation by completely redoing everything in the house. much of the house was stripped to the studs to redo all of the electric, plumbing insulation, layout, walls, ceiling. It was a long process for my first flip and i probably wont do that much work to a flip again.

What was the outcome?

It currently sits rented out by a tenant that is supposedly going to be purchasing it within the next month of writing this.

Investment Info:

Single-family residence fix & flip investment in Farmington.

Purchase price: $35,000
Cash invested: $120,000

A full remodel on a Victorian style home in our downtown area. I learned much as it was my first flip. we had to gut the entire home and jack a portion of the second story up. there was much to the project that i didnt account for since i didnt know any better but all in all im glad i did the deal. i was able to purchase it for $35k from a local investor that buys multi family home conversions. this one didnt fit his portfolio so he was willing to part with it for a good price. i originally thought id only need to put about $60k into it but it came out closer to $120k. The house appraised for $179k after i was done but i couldn't get it to sell even after i dropped the asking price to $159k so i put a renter in it for the time being. I had to work out a deal with the bank to allow me to make only $650/month mortgage payments for the first 2 years so that the property could just barely take care of itself. The renters are supposed to be purchasing the house in august of 2020 which is just a few days away from me writing this.

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

I was very eager to finally do my first deal and I already was a GC in my area so I decided to go with a flip.

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

My wife as a hairstylist actually has a large network of customers that she speaks to about how we wanted to get into real estate investing and one of them told us about this property and i immediately went to it and got in touch with the seller and got it under contract.

How did you finance this deal?

We secured a HELOC on our personal house for the down payment and remodel, then a conventional loan for the purchase price. We went over our budget in the middle of the project so we had to go back to the bank and refinance some of the money we had on our HELOC back into the mortgage of the property. As the tenant moved into the property we refinanced a portion of the HELOC into the mortgage for a second time. so i guess we BRRRRRR'd it. Bought it, Reno, Refi, Reno, Rented, Refi, repeat.

How did you add value to the deal?

Forced appreciation by completely redoing everything in the house. much of the house was stripped to the studs to redo all of the electric, plumbing insulation, layout, walls, ceiling. It was a long process for my first flip and i probably wont do that much work to a flip again.

What was the outcome?

It currently sits rented out by a tenant that is supposedly going to be purchasing it within the next month of writing this.

@Clay Lehman Hey thanks for the info, I would greatly appreciate the contact info for a good lender!

I currently live in Missouri but we are looking into multi family investments in Ocala Florida as we travel there quite a bit and like the area. I currently work with a local bank in Missouri for my real estate investments but now that I am expanding I need to find an investor friendly bank that is willing to work with a new to intermediate investor. Any leads would be amazing, Thank you in advance.