All Forum Posts by: Neil Schoepp

The lender is protecting their position. The work around is a straight out refi but that may not be advantageous. The true "work around" is to withdraw the heloc from the account and place it in another account. Hopefully you have I/O on it and the monthly payment will be "small".

Now some will say "you want me to withdraw the money and pay it back with what? The money I withdrew. That will then negate taking a HELOC and it will lower the amount I have to deploy".

Well now how much would you have if you got the same phone call from your lender? It's the price of doing business.

John asking for referrals is a great way to find a reputable contractor. If GA is anything like PA then it's hard to find a good one. If you strike out here try finding a local real estate agent they usually have contractors in their roledex. Property inspectors may know someone also. Another strategy and I haven't used this one just throwing it out there is to show up at home depot a 7am and start talking to them. Not always true but the more "professional" ones will be there early. Another tactic is to ask lumber supply houses if they can recommend someone that has an account with them.

I cannot comment on Chicago but can possible lead in the correct direction.

Basements typically need two exits. If there aren't two you may be able to put in an egress window. CHECK LOCAL CODE.

With that being said I'd like to paint a picture for you. There's a fire and a death in the basement. Upon investigation it is confirmed that the the CofO is for 2 units yet there are three. What do you say to the judge at the trial?

Do plenty of people do it, yes absolutely......Is the risk worth the reward......To be clear The risk is jail time starting with negligent manslaughter.

In short find out what it would take to convert it to a legal unit. Then convert it and sleep well at night.  Legal non-comforming means just that. you have "special" permission so it's legal even though it doesn't conform to what is written in the code. 

Then Make It Happen.

Create a list of every duplex tri quad you would live in and start mailing letters and making calls. How about sitting in front of a tri and calling the owner and saying Hey I'm out here in front of you tri-plex over on highland in Dayton. Did you know the gutter is hanging off the roof? or that there is a bathtub in the parking lot or just saying "I'm sitting in front of your tri-plex in Dayton. It's a good looking property have you ever thought of selling?" Don't wait for it to come to you get out there and get it.

Jason, spot on. I refer to it as .....squirrel......or a more popular phrase is shiny object. 

I would gain a solid footing in one strategy then if i wished to I would branch out. 

Amazing what happens when you leave your comfort zone and start to crush limited beliefs. Congrats. It's off to the races now. 

"You did it once , you can do it again"  ~ my fitness coach every time he kicks my a**  ha ha

@Garrett Woodham How do you feel about implementing your plan with one slight change? Buy a duplex or triplex live in one and rent the others out.

@Kaden Fascella  There are plenty of underwriting templates out there below is a basic one. I would itemize the expenses and break them out per unit (the J column) as you underwrite more and more in your market you will get to know if for example cell J 42 (insurance) at 457 is avg. below or above. I would add closing cost. I allot for 2-3% of my bid price. Cap ex @ 350 per door.

Property Maintenance looks low. I would plan on 10% unless you are actually talking to a PM and they are giving you 5.  Always ask about additional cost like evictions, lease sign ups, being on site for maintenance calls, etc. You can absolutely build your own spreadsheet to analyze properties. If you are comfortable in excel I actual suggest you do so because it makes you much more familiarized with which numbers affect which numbers and your spreadsheet will grow as you do. If you are not so inclined to do so and would rather purchase one then https://www.themultifamilyanal... is the one I would use. It's way more then you would need to purchase a smaller MF but you will never need another one again. I use both the below and this one exclusively.  

But the thing that immediately jumps out at me is you state taxes are 40K a year. that's roughly 3300 a month yet you have your expenses listed at 3200. from what I can see it's looking like your expenses per month are going to be 8200 monthly 3200 listed expenses + 3300 taxes) + 1700 (flood). i would expect them to be higher after you really drilled down on the numbers. 

@Kaden Fascella As far as cap rates go when you are an owner you favor lower cap rates. A buyer favors higher cap rates. When cap rates are declining the are compressing. Pretend you had an NOI of 100,000 and you had a 10 cap the property value would be 1M. Now take the same NOI and use a 7 Cap The value changes to 1.42M.

Hi Ryan, I invest in commercial Multifamily Properties. I can tell you there are LOTS of engineers that I talk to all the time. Not sure why so many are attracted to MF but I can name a dozen right off the top of my head. In the MF space I am bias to Jake and Gino as I am part of that group they have absolutely changed the course of my life. Joe Fairless also puts out a lot good stuff and the pod cast Old capital is worth a look. Gino Barbaro is a member here and writes some blog post. Here they are on the BP Podcast https://www.biggerpockets.com/...