All Forum Posts by: Daniel Whiddon

Sorry should have been a bit more clear. The 8k a month is after all expenses (estimating a 10% maintenance cost). I can bring it up to 13k a month to split after I increase rents. Obviously this is just an average estimate, because expenses may vary month to month and it grosses 48k a month (35k NOI).

But yeah, it still didn't seem like enough for me. The seller seems to think it's a good deal for someone to manage those properties, but I wasn't sure that I could make it work or even talk to someone realistically about the partnership.

Hello BP! I would like some recommendations if you'd be willing. I have a possible opportunity to get a huge portfolio 100+ units under a Master Lease Agreement. I've run the numbers and it grosses 600k+ per year in rent, with the opportunity to bring in 25-30k cash flow, about 8k a month after paying the lease. I don't see that as a lot of income for that many units, but I estimate that with about 100k renovation and with tenant swaps, I can bring the rentals up another 5k a month guaranteed with the possibility for more. The guarantee is there are 12 currently unusable units that would rent for 4-500 each once they are usable. Any rental income increase I can keep every month, so I'm highly motivated to focus on those repairs.

My two biggest risks are 

1. I'm very new to real estate, (planning to compensate that with a partner)

2. The opportunity comes with a 500k collateral cost, which that partner will have to provide. I can only offer sweat equity in this deal because I'm so new. 

I believe I can handle the workload, mostly because I have sought out and contacted a property management company that is willing to help me with the things I haven't done yet. I have experience doing general repairs to houses and would consider myself a somewhat of a handyman at this point. 

I just need someone willing to help me with the collateral. The seller told me they may even be willing to forego the first 6 months lease fee in leiu of using that money to finance the repairs.

There are a lot of other considerations, such as the option after 5 years and of course the ARV, but I'm only really interested in the cash flow for now to build my own portfolio, and not the option or the potential from ARV.

This is not a solicitation, but I would love advice on whether it remotely looks worth doing and if so, how can I sell it to someone when I find someone to ask for 500k collateral and a partnership?

As always, thank you for any insight you can offer. I appreciate this community and your time!

Thank you all for the connections! I'm excited to work with you all!

Roger, thank you for the link. Ive seen that group a few times but they seem to be lacking posts over the last 6 months and the community posts are sporadic and short. I would love to connect to local investors. Is it just quiet or am I missing something? Should we create a new Facebook group :)!?

Hello BP!

Im trying to change professions from a software engineer to a REI, and although I've done my research online and with reading, I learn best by doing. I have very little capital or collateral right now, so its difficult to get in, but I have the determination and motivation to get there! I live in Vestal right now, and I'm seeking other REI in the Southern Tier area (Elmira, Binghamton, Rochester, Ithaca, etc) that would be interested in chatting.

Very honestly, Im interested in helping with deals, riding along with a mentor, and learning everything I can in the hopes of quickly building a cash flowing rental portfolio using creative (or non creative) financing either with partners or solo. For instance, ive recently been trying to partner on a fixer-upper MLA portfolio in Bing where I would be doing all the on-the-ground-maintenance and fixing and splitting the ARV with a partner, but the seller wants a sizable down payment.

So, that all being said, I want to thank Bigger Pockets for this fantastic community and I hope to connect with some of you in my area!!

Thanks all
Dan

I got a 4% x 15 blanket loan, but I made an off market deal with my neighbor for his two duplexes. Down payment is 20%. 

@Jeff Jansen. It's been four months since you first posted. I'm about to pick up 4 units in Elmira. Has everything worked out!? I'm interested in hearing your story. Have you had any major issues working in Elmira with the lower income tenants?