All Forum Posts by: Corey Louton

Thank you. First off, this is a low income housing area and my first experience in this market. I leaned heavily on my property manager when it came to marketing the property (I interviewed 4 or 5 before finding her). I ended up spending a pretty penny on plaster work for the downstairs when drywall and paint would have been just fine; this cost me an extra $2200 or so (this is where my contractor and realtor recommended the plaster and my prop mngr didn’t). 

Numbers:

Asking $57k -> purchase $40k

$18k in repairs 

Rent: $700/$650 ($1350 total)

3%vacancy 10%prop management 5% capex & repairs 

Property taxes $69.08 / Insurance $135

Cash flow $435

Planning to BRRRR this property in order to scale

Investment Info:

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

Purchase price: $40,000
Cash invested: $18,000

Duplex that required a moderate renovation.

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

It was multi family, in my price range, and I needed to move past the analysis paralysis.

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

Found it on Zillow, offered $50k and was accepted. After property inspections were completed I negotiated the price down to $40k due to required repairs.

How did you finance this deal?

Used private money to make the purchase; taking a loan of $50k amortized over 30 years @ 5% with the note due at 5 years.

How did you add value to the deal?

Leveled the downstairs kitchen, replaced all cabinets and countertops, painted both units.

What was the outcome?

Both units are currently rented with positive cash flow. My property manager has been a huge help in my success so far.

Lessons learned? Challenges?

Lots....what is required vs what would be nice when you’re on a budget is huge. Listen to your team when making renovations.

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

Lakesha Kirkendall with Desirable Management, LLC in the Norfolk area is fantastic. She knows the market and has a large network of professionals.

Can anyone provide recommendations for a general contractor in the Norfolk VA area? Looking to renovate a two bedroom one bath 800 square-foot apartment. Any assistance would be greatly appreciated. Corey

Thank you Erica. I will read that this weekend. Did you form an LLC before you made your first purchase on a property?

My wife and I are looking at a couple properties in Lynchburg and live in Fredericksburg, but before jumping into buying properties we want to get some legal advice on protecting our family. Does anyone have a real estate attorney they would recommend? Thanks for the assist. Corey

Thank you all for the welcome. Jim I would like to get together to trade stories and learn from your experiences. I look forward to helping anyone where I can and learning as much as possible from everyone here on BiggerPockets.

My name is Corey, I am about 4 years away from retiring from the Marine Corps and want to start laying a solid foundation now for when that day comes. My wife and I are both very interested in real estate and have been since we bought our first house in CA in 2008 following the crash. We have since sold that house and now have a house in VA that is our primary residence. I decided a couple weeks ago to stop just talking about it and start a plan to begin this awesome journey, and that is how I found Bigger Pockets. I am currently working on acquiring my VA real estate license and working with local agents/brokers in order to gain a broader experience of the market. I am looking to invest in the 22554, 22406, 22407, and surrounding areas. I am eager to learn, gain knowledge, and expand my network. I look forward to hearing the advice!