All Forum Posts by: Clint Larson

Investment Info:

Single-family residence buy & hold investment in Minot.

Ok, I'll admit it: this is an accidental rental. Originally intended as our primary residence for 3-5 years, this 4br/2ba house with a large bonus room became my second rental property when we picked up and moved out of town. While it doesn't cash flow impressively, it does cash flow. Considering that I barely have any cash into it and that everything inside has at least a 10 year remaining useful life, my ROI is pretty darn good. It's truly a place I can say I'm proud to own.

Good morning Minot folks! We have created a Facebook page called Minot Real Estate Investors. Please join the group! 

@John Warren thank you for your insight. This is one of those things I typed out and sent - then realized "of course! Why would I wait if I don't have to? I'm the dang owner! Let's get 'er done!" 

Hi all, I'm a fairly new multi-family owner looking for some advice on getting my units ready without stepping on the property manager's toes too much.

I have two vacant units and a common area that I'm trying to get up to market quality.  Right now my property manager's maintenance folks are spread among their other properties under management; therefore I'm having to wait in line to get these basic things done (basic handyman deferred maintenance items) before the units can be listed. 

If it was you, would you wait until the property manager's maintenance people were available, or would you call up a local handyman and get the items knocked out? 

Thank you.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $112,900

This is a distressed mom&pop 6-plex. I am performing light renovation, rebranding, and implementing new management, and will refinance to roll the original cash into another deal.

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

I like this deal because the rents are already on the low end for the market. Rent could stay as-is and cash flow, or can be raised to market rates. The property has many value-add plays and many people in the local market perceive commercial deals as "off-limits" so competition for small commercial multi-family is slim. More importantly, we can help make the community better by fixing it up and providing valuable, affordable housing.

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

I have been watching this deal on the MLS. When it got near my target price, I submitted an offer and secured the property for slightly less than my target price. Negotiation was minimal - the owners were quite motivated.

How did you add value to the deal?

The method will be:
-Implement professional management
-Rebrand the property
-Raise rents to market rates
-Use existing unused space for rentable storage space
-Make the tenants feel that we care about them and keep 'em coming back for more.

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

Rachel Gaddie, Minot, ND realtor is a go-getter. If you're also a go-getter, you WILL make a deal happen.
Town and Country Credit Union, also of Minot, has been the absolute best community bank to work with for any loan.

Thank you everyone for your replies so far. @Peter M. your reply seems like it could be most applicable for this mom and pop operation and their lackluster management situation.

Following... 

Hello, I'm a first time investor and I have a 6-plex under contract. 

What would you do in this situation?

I have nearly all my contingencies met by the motivated sellers. However, I am wanting to see actual proof of the rental income for the four occupied units. So far,  they have provided me three years' P/L from the property manager, the current leases, and a "rent roll" that just showed the names of the tenants,  and their lease rent rate.  The seller's agent says "everyone is paying their full rent, they are legally bound to because they signed the lease." 

Should I be looking for more proof of full rents being paid beyond these provided items? Or would you be satisfied for what has I have in hand.

Thanks a lot!

Thanks for the reply. Maybe I'm still digging in the wrong places, but the places I have checked with have required two years 1099 work regardless so far.  I take it based on what you have said I would have to wait until 2017 tax return is available to make this work?

Hello everyone. I live in Austin, TX.  I am planning to buy a single family home to live in somewhere in the next 6 to 12 months. I am a 1099 employee with a good wage and would-be a first time buyer. Unfortunately, this has caused some hangups with traditional mortgage lenders since I have been 1099 for right at 1 year now (they seem to want two years). 

Does anyone have good recommendations as to where I should look for lending? I have been 1099 for 1 year, making a good amount of consistent money. On top of that, my current job is similar to my previous W2 job of 3.5 years, just had decided to go independent for more freedom in terms of time and money. 

I appreciate any help on this! 

Clint