All Forum Posts by: Cole Farrell

Hey Seth! I wish I had some good contacts for you at the moment, but I don't in wholesaling . However, I am a property manager in Lehigh so hopefully we can link up in the future! If I hear anything Ill let you know.

@Carl Mathis It is here too, Im waiting on the case and hoping courts will accept it. Wish me luck!

Hello, 

I am wondering if anyone else on here is fighting with terrible inherited tenants during covid. I bought a small portfolio in November knowing well what I was in for, however these inherited tenants are fighting well. The ones I need out are obviously not paying and using every trick in the book to avoid eviction. I have finally filed on one of them because the moratorium extension AGAIN, and I found he/she was subletting against my lease on top of everything.  

Is anyone else going through some black swan covid nightmares? I would love to hear them. Thanks!

@randygutierrez, It depends on quite a lot of things. For me, it was more important to secure this deal and have thousands cashflow than it was to focus on price. Price of real estate is also subjective sometimes depending on the buyers plans. For example, I intend to hold this long term. Now the market price in his area is about $100K/unit so I'm not far off, but in its condition it probably should be about $85ish/unit. But in five years, rents will be much higher, and the property will greatly appreciate because the city is growing massively. So in the grand scheme I would rather overpay and get experience, credibility, cashflow, equity, and so on than wait or search for a deal that may be a slightly better purchase price. I also have not raised any of the rents yet. So it cashflows now about $2500 total and should be between $3000-3500 after everything is finished. 

@mattzielger yes exactly! I did not realize how major of a role age of the property plays into the little things, especially through lots of tenant abuse.

Rehab expenses that were higher than expected were small issues here and there that built up. For example, I had to order a special sink due to cabinet fitment issues, there was some hidden ductwork issues that I did not see when I inspected the property, labor took much more time than I projected, old pipes/ parts breaking due to age, wood rot around window frames was worse than anticipated etc. All of this taught me so much about what to look for, but it did come at a price. 

Hello there. I don't think it is frowned upon to use hard money for the finance and rehab, that is usually the case. However, I would say keep looking for private money first. It doesn't have to come from your area, you just need to meet the right person. Usually the challenge is convincing hard money to go with you as a beginning investor. I've found they still require 25% down for beginners and points on top so it doesn't seem much better than traditional in some aspects.

Investment Info:

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

Purchase price: $669,800
Cash invested: $179,000

7 Unit Portfolio Purchase
Mix between SFR, duplex, twins

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

I wanted to expand my portfolio but do not yet have access to large multifamily. I'm looking for cashflow over anything else

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

Private off market deal, I knew the seller. No negotiation, was not feasible

How did you finance this deal?

I brought in a partner for the down money, I manage and rehab. We 50/50 split everything.

How did you add value to the deal?

I'm currently rehabbing each of the units one at a time. I should be able to pull out about $20K per unit once it is finished.

What was the outcome?

Still in the process! Inherited tenants are a nightmare mixed with covid ie evictions but Im making it work.

Lessons learned? Challenges?

Rehabs cost more than you think even though you hear that and try to plan
Inherited tenants are usually the worst
Do a more detailed inspection

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

I used an agent for this because at the time I was not licensed (started the deal a year before we closed) and did not have confidence I knew enough of the paperwork for a large transaction like this. @JustinBrown is the best agent in the Lehigh Valley.

@Tommy Brant I’ll give them a shot, thank you!

What’s up BP, I have been doing rehabs myself to learn the ins and outs for experience. However I’m getting to the point where I don’t need to do it all, and I need help from a part time helper. I’ve tried posting on Facebook and other social media but I’m not getting the type of people I want. Should I try indeed or something like that? I’m not looking for a contractor or professional help. Please let me know your thoughts! Thank you!