All Forum Posts by: Cindy M.

Hi Guys, Thank you, Jack, Jason & Rick for your replies!  Jack, and yes going to the building dept., tomorrow to get book on all codes but I think you misunderstood...the basement area is a dirt floor but not considered livable space...the other 2 floors (kitchen area, living area & 3rd floor 2 bedrooms & bath, and 4th floor which is a storage/attic and also considered not livable space.  Like its own townhouse, it's private and each unit has its own entrance and 2 spots for parking and location where you can walk if you want to get a container of milk.  I liked it for those reasons instantly, and can look beyond the cosmetic TLC within b/c it can be rectified; but of course I am from NY which we value space and privacy as a privilege, and you can only have any of those things if you can afford it.  Your from Georgia it's like a different world to us...

Rick, going down to town hall tomorrow.  Yes, its very exciting b/c it's affordable to buy and you can pay it off within 5 yrs and it cash flow's from day one as opposed to NY where everything starts at almost $1M and the only people that will ever see a profit will be your children.  

I did use a real estate agent for this purchase.  These type of properties, getting an all rented property for cheaper to fix-up later (basically the brrrr strategy) it pays for itself and cash flows are the only properties I am interested in...less work the better but the renovated properties still seem to be out of business model in terms of coming up with the down payment and re-payment strategy of being able to pay it off in 5-7yrs as we don't need the profits to live we just continually pay more principal from the rent.  Since you are in CT I will call you directly to discuss, maybe you have some of these type of properties...if so, I would be interested.

Jason, worried about your comments...$20K just seems so much to invest on a unit that I might get $250 more in rent, if lucky, and good tenants that will stay awhile.  To invest more than $12K feels like I am pushing it..I feel that I must keep the budget low and be conservative.  I want to get more doors, my goal is 20 units and I only have 4, my thoughts are that if I dump all money and resources of financing into one renovation and cosmetics...I will never buy more buildings and get to my goal. I hope to be at at least 20 by the end of 2018.

Hi Andrew, Thanks so much for your time in responding! It is much appreciated...I did brace myself for "Oh No, why did you do that?" type comments, but it seems I might be on track.  20%+closing +++ down is tough and also a risk and your credit is got to be good enough for a bank so it seemed on target... but the thought of Hard Money and deals that encompass Balloon loans, and variable rates etc., are scary to me!  So I just got a regular commercial loan but wasn't sure or don't know enough yet to say, "It was the best choice of loan."

On the 2nd part, my building like most building's in that specific CT area is like cutting a house in 4 equal Parts, they are like 100 yr old big houses that have been turned into multi-families.  In this case 4 units. To get a visual, is a basement dirt floor, no entry, but private; 1st floor kitchen & living room, however they just threw a stove & frig, in a room, so, I would have to put in an actual kitchen; 3rd floor 2 bedrooms & full bath (its nasty and needs a full gut), 4th Floor is an attic that is like a full floor so it's a nice perk to store stuff; but the condition is beyond what I can describe...it's like you owned a building for 50 years and you did no renovation EVER and that's the condition.  I think the carpet is literally 100 yrs old.  So, a 'diamond in ruff'! Lol.

The rent in this condition is $750.

The market area can run $650 - $1100 (only brand new construction gets higher than that)

After a Renovation - I could would most likely get about $950-$1000 which is realistic.  For me, to do a total renovation on a unit will cost about $10K maybe $12.5 if I put new appliances.  So, now you know the numbers and the rent...is it worth the renovation expense?

My problem is how do I put in a new kitchen etc., and then not change the floors and leave the 100 yr old carpet...???  

Thanks again, so interested in what you would have to reply...

Hello, This is my First Time posting, so guess I am a real Newbie!  Looking to my new Bigger Pockets Pro Friends for Advice and give me an honest evaluation of the way I went about it, so I am putting myself out there for comments on 2 parts... 

Listened to Branden and Josh podcasts...and said, you know what? I can do it!  Thanks!

Feels Great to be in the Game! OK...  

1. Just Bought a 4 Multifamily Rental Property closed in Sept., about 2 hrs from where I reside, but in another state (CT). This is a long term investment to hold and rent. Managing it myself to get and need the experience. It was all rented, good cash flow after all expenses paid, got a good price (needs TLC but not falling down, hey, its all rented) so I can rehab later (little by little), maybe do brrrr and my goal is to pay it off in about 5-7 years. Since I know the basics in small business, as I have had one for over 20 years, I saw this as a new business...so, I got an LLC for this property. Went to a local savings bank in CT and gave me a Commercial Loan under LLC @ 20% down for 20 years at 4.25%. Purchase: 133K Loan $106K, payment $767 + tax escrow will roll in in Jan., so payment $969. Can refinance will another lender after 1 year but will be a prepayment penalty of 4% then 3% etc., after my 5yr 0%. Which I thought it was OK b/c I should have it all paid off in 5-7yrs, hopefully.

Q. Did I choose the right Loan product ? Was commercial the right way to go for my first deal?

2. A tenant is moving out and I think it is a blessing in disguise actually, so all good!  Since all units need Rehab, and now tenant is moving out, it makes sense to do the whole unit while it will be vacant.  But Wasn't planning on doing Rehab this early (Its a Gut) so need a loan for up to $15-20K, figure I take a little more out...not sure what I am going to find behind those walls...

Q. For this Rehab, what loan product should i use and with what co., went back to my bank and they might give me a no interest loan for 6 months etc....but timeline might be tight...I am not sure how should I finance this?

Thanks in Advance for Your Help!