All Forum Posts by: Cory Gardner

I am looking for a good property management company in the Hartford/New Haven CT area. I have looked online but only 2-3 companies come up that manage smaller multi-family apartment buildings. Looking to be able to do 5-50 units.

Thanks for the help

@Matt Juels

Yeah I know the PMI can lessen the cash flow but I'm hoping to find a good enough deal where I can still live free even with the PMI and get good returns when I move out. I never heard of that 5% down without PMI and I will look into that. That seems like it could save me from refinancing in the future to get out of the PMI.

Thanks and good luck!!

@Kevin Siedlecki

yeah I should have been more specific with my plan. My brother and his girlfriend are going to get an FHA loan on the first house and we are all going to live in that for a year, then me and my girlfriend will get an FHA loan for a 2nd property and we will all move in that one and let the first one cash flow for a couple of years. 3 family houses in CT where I live go for around 200k so a 20% discount would be a 40k discount and instant equity. If we did that twice we could sell both of those and make about 100k and then use that as a down payment for a commercial property.

I am looking for advice on whether or not my plan is feasible or not. My brother and I plan on buying a 3 or 4 family house using an FHA loan and putting 3.5% down and living on the top floor. We will only do this if we can get at least a 20% discount on the property so we can have decent equity in the property. We plan on doing this so we can live for free and we can get free equity by finding the property at a discount. Basically this entire plan is based on us finding a property at least at a 20% discount so we can sell the house in a couple of years and then get another FHA loan and repeat the process until we can buy a commercial property. Does this seem like a dream or is it reasonable?

Thanks,

Cory Gardner

Hey Justin,

I got my first batch of postcards done at staples but now I'm getting them done with click2mail

@Justin Drappi 

In my first postcard I basically said how I buy houses for cash and can close fast but I made it seem more big business like by saying I am an investor looking to buy 4-5 properties a month and now I have changed up the message a bit and attempting to sound more local. I only marketed to the same address once and now I am sending the 2nd batch to the same addresses I sent to before. I am using yellow postcards right now due to the cheap cost compared to yellow letters at the moment and so far my callback rate isn't that bad. I am experimenting to see if it is the postcard or the message that was contributing to the 3.15% callback rate and hopefully this new message brings it up to at least 5%. I added more addresses to this list so I am sending out 622 postcards this go around and 5% would get me about 31.1 calls so I should be able to find a solid deal off of that.

I sent out my first direct mail marketing campaign of 254 postcards last month and got 8 calls from those postcards and was able to get one house under contract and currently in the process of closing in on that deal. So I got 3.15% callback rate on my first mailing and I am looking to improve my callback rate on my second mailing that I have just sent out. I changed the message a bit and made myself seem more personable and not as big business like as before and hopefully I can get to a 5% callback rate. What is considered a good callback rate and what tips would you suggest to increasing my callback rate?

Thanks,

Cory Gardner

hey Todd thanks for the tip. I'm just figuring if I could get a house 30-40k below what it would sell at on the market to make it even a better investment for the landlord.

well I was figuring if someone got a 30 year mortgage on the property for 85k the mortgage taxes and insurance would come out to 850-900 roughly a month and if two apartments are already rented out for $700 that would be cashflow positive of about $500 and since I got a discount on the price of the house whenever they decide to sell they could get a profit on that as well.

the property is in Meriden and not too good of an area but not really bad. Other multi families are selling for 150k and up on the same street. I'm really familiar with the area and one of my friends lived in a rental on the same street and it wasn't that nice at all and still had to play $750 for rent a couple of years ago.