All Forum Posts by: Constance Chambers

Way to GO!!!    We had something similar happen to us with our current primary residence.  the listing had been on the mls for over 2 yrs.  was only listed as a 3 bedroom, we needed 4.  we knew the neighborhood and loved the wrap around front porch so we just decided to give it a look anyway.  We loved the house, was shaking our heads because it was only a 3 bedroom as we stood outside with our realtor. It was a southern living design plan after all!! My husband looked up over the garage and noticed a window, & states...'we didn't see a room over the garage"  our realtor responds "its just an attic"  which is what the sellers realtor told her, which was incorrect information provided by the brother of the seller who incidentally lived in the home and did not like the idea of having to move out.  jokingly, as our realtor showed us the home, she called it the underwear house...use your imagination as to why it had gotten that nickname. Undeterred, my husband decided to investigate anyway, found a locked door inside the foyer from the garage entrance, opened it...and Surprise...bedroom #4: massive (with a walk in closet) was up the stairs over the garage.  We got a steal of a deal, not nearly as good as yours though.  We are selling soon, after 2yrs of living here, and using the equity (110K minus realtor fees) to buy more RE investments. " Leave no door locked" is our new motto when looking at properties now.  I chuckled reading your post. You weren't lucky, you were undeterred and went with your gut.  

@Jason C.

Hi Jason,

We are from Macon (20 yrs) , relocated to Athens/North Georgia area @5 yrs ago ...started investing in MF in 2018 using our own money part time also Would love to connect. I know your market very well & North Ga market also. We both still work FT at our W2 jobs but are looking to really grow in 2020 ...perhaps we have some ideas /tips we could exchange I realize that there is more potential for growth with the right team /partners than going alone.

@Joseph Firmin

It’s called Mighty Boss by zoom cleaning products. Has a bull on the label. I filled up the enamel tub & poured this in to water as recommended on label & let it soak several hours, was totally amazed.

@Nikki Closser

What do you mean by “on the market “? Remember that Zillow /trulia/ Redfin/ Realtor.com doesn’t update immediately or sometimes ever (esp Zillow).

Look closer on the county property tax website or have your realtor to check if they are still active for a better indication of how long MF are staying listed before selling. I think some investors are holding out for the market to drop as well, since only investors typically buy MF. Have you attended your local REI meetings? This is usually a great resource for finding out what's actually going on in the MF space.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Athens.

Purchase price: $120,000
Cash invested: $39,000

brick duplex with 2bed/1 bath each side in popular athens ga area near shopping/grocery/vet school

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

area is very popular, near UGA campus and shopping. great employment area. Multifamily to reduce vacancy risk and cap ex

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

found on MLS via zillow
negotiated with seller realtor via our realtor sellers realtor was also the property manager and had issues keeping property rented.

How did you finance this deal?

had cash from our cash out of annuity and 401k, as well as 401k loan and selling of company stock for the 20% down, went to our portfolio lender for a loan on 80% LTV that we had used on first purchase 3 months prior.

How did you add value to the deal?

updated electric component to code. cosmetic rehab on 1 side not occupied, paint and vinyl flooring in bathroom and kitchen. new appliances. new vanity to side B. new light fixtures. ceiling fans through out. washer and dryer installed. landscaping to increase curb appeal. self repaired driveway that had tons of holes in pavement

What was the outcome?

inherited 1 tenant that is long term, increased rent by 5%. have room to go up more to get to market value rents over next 3 yrs.
rehabbed side B rents out at max rents for area, after total rehab @ 9k
plan to paint exterior in spring of 2020 and place privacy fence and outdoor storage to increase return

Lessons learned? Challenges?

vinyl tile flooring is very inexpensive and easy to put down, just make sure to acclimate to temp. for several days first. bath tub cleaning was a challenge, finally found a great product on amazon that worked like a champ.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Watkinsville.

Purchase price: $120,000
Cash invested: $54,000

brick duplex in Watkinsville, Ga. Highly desirable due to school system in Oconee, CO. GA and close proximity to UGA and North Ga watkinsville campus. inherited 10yr tenants that were paying 300 month less than market rents for area. renovations done on both sides, most on side B. plan to fence in backyard and rents go up again Jan, 2020. both side currently rent at 800 plus pet fees since Jan 2019. *will need new roof in 2020 @ 6k

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

Location due to school system, job opportunities and lack of affordable rental property in the county. Multifamily due to less vacancy and less cap expenditures.

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

I found it on the realtor.com MLS site. We offered 125k of 139, were the highest offer. appraisal came back at only 115k but we realized the value and came up with extra 5k out of pocket and settled on 120k

How did you finance this deal?

We had cashed out several retirement accounts...including an annuity. Took the tax penalties in stride knowing this was our way into investing. We still have retirement accts. as well, but now we are well diversified.

How did you add value to the deal?

new flooring (LVP), new cabinets on side B, new paint and trim, removed wall to create open floor plan on side B, newish appliances both sides and installed DW on side B. updated vanities and wall heaters. Placed W/D in both units to be competitive in the area. Adding privacy fence in Dec. 2019
charge monthly pet rents

What was the outcome?

rents increased to 800 each side plus pet rent, current ROI is around 14% side B, 11% side A

Lessons learned? Challenges?

stay on top of contractors and deadlines. offer incentives if deadlines are met. we can do alot of the work now ourselves and did most of the renovations on side A ourselves.
keep an active updated file easily accessible to send to the lenders with last 3 yrs tax returns/most recent pay stubs/ references/ debtors information (acct. number and address, pay offs) / copy of DL etc. ...to keep things going and to close quickly

@Jamie Briscoe

We are not in your area Jamie but we are FIRE movement believers. Also follow ChooseFI on Facebook & actively post & follow discussions ChooseFI has a Realestate group on FB as well that's been a tremendous resource & motivational as we started really late in our game. We turn 50 this year. We are at a 64% savings/investing rate after just 1 yr of committing to FIRE. Our early retirement goal is before age 55 using REI as our primary vehicle.

After reading several books, listening to podcast etc. on REI, especially Matt Faircloth's "Raising Private Capital" (you should see the notes i have from this book!! ) I have decided to invest in my education a little further by attending real estate license school. I can only do this remotely since i travel full time for work (travel nurse). Anyone have actual experience with an online program that they feel provided what they needed to pass licensing exam? I am in Georgia if that matters

@Tom S. Thanks for your time and input. Our plan this year is to refinance both duplexes using the BRRRR method. Which is our plan to buy our next MF also. This home just kind of fell into our laps, i evaluate properties every day and literally found this one while pumping gas at a local gas station near the property. I never expected our offer to be accepted honestly, it was a bidding war so to speak. They chose us because of knowing someone personally that we also know....small town rewards i guess.

@Georgui Kasaev thanks friend...really Miss you guys at the REI meet up in Athens.