All Forum Posts by: Cody DeLong

Currently in an interesting situation. I'm a buy and hold investor and a deal came across my desk. A lady owns a single family property she bought for cash and took a $52k HELOC out on in 2006, owes $42k on the HELOC and stopped paying in June 2018. The house is worth fixed up, $40k max! However the kicker is in this town, the 4 BR houses go for $950 a month rent, no utilities included. So as you can see the cashflow is there.

The owner says that only cosmetics need to be done when she closed it up in June and the renter left. The current HELOC is $380 a month, she currently owes $3800 in back payments, taxes, and interest.

What I'm curious is this, Assuming it needs $10k in cosmetics and such to get someone in there. Am I better off doing Subject 2 or trying to get a short sale? Since it's a HELOC does this work differently? Thoughts?

I love Camden National Bank personally.  They do commercial at 20% down and I recently purchased at 4.75% on a 5/1. 

@Russell Brazil looked at vacant 6-plex where the city said every window needed this to be done plus a lot of other things. Not even sure you could give me it at this point.

awesome. Thank you!  I’ll deff reach out!

@Andrew Neal I started with an 11 unit last year. I have a property management company handling the day to Day with collaboration on large decisions. I started with a multi because the deal came across my plate and it was too good to not figure out. Looking back it’s been a good decision

@Elliot B. There is no true NOI when I bought t. The finances were a mess!! I'm still surprised the loan went through but the numbers are solid. I'll cash flow about $2200 a month after everything by the end of the year. Maybe more if I can get another 2 Section 8 tenants in there. At 1 bedrooms Section 8 is great because it's usually an older single person or a couple. Not big families etc where a lot of problems lie sometimes.

@Ryan Murdock most are good. Some are late every month but with winter we’re dealing with it the best we can. I plan on getting rid of a few tenants who are smoking in their units still come Spring time and using the cash flow to paint, clean, and fix up those units for rent pretty quickly. How was he move to Hawaii?

@Jeremy A. that is just the 20% down. I reinvested my profits up until now for the repairs. 

Investment Info:

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

Purchase price: $275,000
Cash invested: $55,000

All units are 1/1 units with all utilities included. We immediately added coin op laundry, swapped out all lights with LED, replaced and painted the sign, replaced outside lights and added safety lights, cleaned up the outside. As the inherited tenants move out we're cleaning and fixing all the units that either need repairs or new flooring. All cabinets, appliances, and bathrooms are pretty new and standard.

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

Wanted to invest in a multifamily for my first deal.

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

Purchased the deal through a contractor I've done work with before who was forced to sell.

How did you finance this deal?

20% Down and Commercial Loan

How did you add value to the deal?

Coin Op and Raised rents that were all below.

What was the outcome?

Higher rent

Lessons learned? Challenges?

Longer time of getting units fixed up

Investment Info:

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

Purchase price: $275,000
Cash invested: $55,000

11 Unit Building

Purchased the deal through a contractor I've done work with before who was forced to sell. He renovated the property in 2007 when he bought it but did not do good with maintenance. All units are 1/1 units with all utilities included. We immediately added coin op laundry, swapped out all lights with LED, replaced and painted the sign, replaced outside lights and added safety lights, cleaned up the outside. As the inherited tenants move out we're cleaning and fixing all the units that either need repairs or new flooring. All cabinets, appliances, and bathrooms are pretty new and standard.

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

Wanted to invest in a multifamily for my first deal.

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

Purchased the deal through a contractor I've done work with before who was forced to sell.

How did you finance this deal?

20% Down and Commercial Loan

How did you add value to the deal?

Coin Op and Raised rents that were all below.

What was the outcome?

Higher rent

Lessons learned? Challenges?

Longer time of getting units fixed up