All Forum Posts by: David Hall

There are a lot of variables here, you may just need more info.

Insurance I would expect to be $800.  Could be less, could be more depending on value, sq ft, coverage, carrier.

Repairs you won't know unless you walk it.  But you can gain a lot by asking the seller what they've done and what it needs.  If it is licensed as a rental that will help you understand that plumbing, HVAC and electrical are at least functional and up to rental authority code.

SFH don't really go off a CAP. Most investors I know want $200 a month cash flow and a certain percentage Cash on Cash return. 10-20%.

Utilities you'll have to guestimate or ask the seller if they have this info. But on a SFH tenants most likely are paying all these items.

10% Property Management

10% Repairs/Maintenance (Depending)

10% CapEx (Depending)

10% Vacancy (Depending)

These all vary, but if you run these numbers and can get a good return it may be worth walking through.  The ideal buy and hold DEAL is a home that doesn't need repairs and it just under valued.  An investor and buy it, rent it and have no issues.  The ideal FLIP is something that an investor can make 30% or greater on.  

Beware, there are several areas in Lansing that don't sell fast. Your ARV in these areas is worthless unless there are short DOM. I often look at DOM first and if I can move it quick, then I look at projected return or a plan B. Often I'll flip a property, with the intention of listing it for sale for a month or two. If it doesn't sell I'll rent it, refinance it and do it again.

Hope that helps.

Investment Info:

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

Purchase price: $100,000
Cash invested: $20,000

Great Opportunity to showcase a deal we've done. Here is a FSBO 4 unit apartment building that was a hotel at one point. Perfect setup to restore and old building and keep some of the old time charm. On the river in downtown Grand Ledge on the outskirts of Lansing Michigan.

I was able to use an investor's funds to purchase and renovate the property using only $10,000 out of my own pocket. One of the first tenants offered to pay rent for the entire year up front which nearly eliminate any out of pocket expenses for me. The renovations took about 4 months to do all four apartments. Each is 2 bedroom and received new carpet and paint, two units received new baths and kitchens as well and one a new laundry in the unit (the rest will share coin laundry in the basement as part of phase II).

All in the renovations and purchase price equaled $120,000. My investor charged a flat 10% fee for 6 months. Unfortunately I went over timeline by 1 month so there was an additional fee to the investor of $5,000 (ouch!).

The property appraised for $165,000 and the bank gave me a commercial loan for the full $125,00 to fully cash out my investor and refund me for the money I put in. All in all I have zero dollars into this, all four units are rented for an average of $665 (with room for increases, I rented the first apartments purposely below market to insure good tenants, stability and a quick refinance based off income). Total monthly payment break down is below:

Total Income: $2,662
Monthly Bank payment: $1,122.06
Monthly Taxes: $360
Monthly Insurance: $100
Monthly Utilities and Lawn care: $125
Total Monthly Profit: $955

2.12.19 - Update just had it appraised again. Came in at $188,000. Rents are increasing and vacancy remains at 0, even with tenant turnover.

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

It's in an area I already had investments, it has a lot of upswing potential and it could cash flow early as not all of the units needed total rehab.

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

FSBO sign in yard, overgrown

How did you finance this deal?

Other people's money 100%

How did you add value to the deal?

Completely redid two bathrooms and kitchens. Painted entire interior and upgraded appliances.

Welcome and congrats on jumping in!  You should join us Feb 26th if you can at Tony M's restaurant on Creyts Road at 6pm.  It's the local Real Estate Investor's meeting.  Meet local landlords, get referrals for local handymen and servicemen.  We'd love to have you and it might help you gain some great input on the Lansing market.

I also am a Lansing investor and am available anytime if you need a referral or input on anything.

My name is Dave and I am a realtor/investor in Lansing Michigan.  I have reached a point where I cannot continue to grow my business without help.  I am looking for an individual to start as my admin and as the company grows turn into my Vice President.

My current focuses and projects include:

- Buy and hold investing (single families, multi families, mobile home parks and apartment buildings)

- Property management

- Renovations and maintenance

- Wholesaling

- Other Creative Solutions

The ideal person would work side by side with me in my office a few days a week and help provide the structure to continue the growth of the company.  Must be highly motivated and organized and possess the ability to create systems and constantly improve existing systems.

Requirements:

20-40 hours a week

Some Saturday and Evenings.

Ability to come to office at 1020 S Creyts office 3 days a week

Must have own Transportation

Must have own Computer

Must complete DISC Profile:

http://www.tonyrobbins.com/ue/disc-profile.php

Responsibilities include:

Completing paperwork for all Realtor sales, property purchases and leases

Organizing office

Coordinating utility companies, municipalities, tenants and contractors for rehabs, move ins, inspections, etc.

Showing vacant units to potential tenants

Prescreening tenants

Book keeping using web based property management software

Answering phone calls

Conducting mailings, marketing and other activities to bring in business

Use all the tips and tricks that wholesalers use.  The easiest and cheapest is to call every single zillow and  craigslist ad asking if they'll do seller financing.  With hundreds of sellers, I'd start with the oldest first to get higher motivation.  You can do direct mail marketing, facebook marketing, post it online forums, the possibilities are endless.

FYI This event is cancelled for tonight due to weather.  Please join us Feb 26th at the same location, same time.  We are having a speaker who is actively flipping houses in Lansing share on his experiences.

Welcome and congrats on getting started.  

My recommendation would be to start marketing for deals!  You can rent in the meantime and save your money.  I marketed for deals and found several motivated sellers willing to sell on selling financing.  Depending on their motivation you might be able to get in for little to nothing down.  Or negotiate in payments towards your down payment, or a down payment at a later date, or anything that fits your needs.  

Renting and learning the area is also a great idea.  Even if it's just for a few months.  See if you can find a short (3-6 month) lease or M2M.  Your first buy is very important and you don't want to buy only to find out you hate the area or it's not what you thought.

Good luck and use that motivation to keep learning and surround yourself with like minded people.  Detroit area has tons of great meetups that will help support you.

Come meet local investors, network and grow your real estate knowledge.

Wholesalers

Flippers/Rehabbers

Buy&Hold/Landlord

Property Managers

Multi-family operaters

All are welcome

I'll be following this thread as well.  Do you have pictures of the process?  Did the City have any issues with adding two units?  Or the utility company?

LAST MEETING OF THE YEAR! FINISH STRONG!

Come learn about financing options for property owners. Including ways to sell your flips to buyers and ways to refinance your rental properties regardless of your personal income.

Our REI Meetups are free!

Meeting Format:

600pm-620pm Networking - Order Food
620pm-630pm Intros and opportunity to pitch yourself or your deal
630pm-730pm Presentation from Jan Szur with Union Home Mortgage on non-traditional funding options for property owners.
730pm-900pm Networking