All Forum Posts by: Christopher John

@Jeff Shumway

Yes I currently owe 260k on the loan. I believe the property will appraise anywhere from 400-425k potentially even more

@David Kelly yes I currently pay $182 monthly which hopefully would negate the extra percentage point for the interest on the loan.

Purchased a 4 unit with 10k down @ 270k vacant that had significant deferred maintenance where the property was completely overgrown. I’ve put 15k into and a decent amount of sweat equity this past 15 months.

It’s now renting $4800 a month between all 4 units with two as furnished rentals. Normal long term tenant rates would be 4,000. I believe the property is worth anywhere from 400k-425k.

I want to pull out some of the equity to go purchase another property but don’t know what the best option is to move forward. I have a 2.7% interest rate & pmi now, and am afraid refinancing I will get an interest rate much higher now that it’s an investment property (4%)

It’s a decent amount of financial levers to pull here between the options & want to hear your perspective.

Investment Info:

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

Purchase price: $100,000
Cash invested: $25,000

Duplex purchase with 1 side severely under market rents (20 years since raise) & 1 side vacant. Spending 3,000 to get vacant side rented for 750 a month & will raise other side upon making improvements to home

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

The interior & mechanicals were in good shape but there was room for value add: rent vacant side, increase rents, improve exterior

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

MLS & put offer in day in came on market to compete against 3-4 other offers. Per Inspection we received 3000 to cover various deferred maintenance items on the home

How did you finance this deal?

Personal Savings & Conventional Fixed Rate loan @ 4%

How did you add value to the deal?

Paint, Carpet, small deferred maintenance items, increased rents, rent vacant side

What was the outcome?

We anticipate the property to cashflow 400-600 total depending on increased rents

Lessons learned? Challenges?

Act quickly, water was turned off on vacant side & hadn't been paid in year+