All Forum Posts by: David Kirkpatrick

Great information!!  Thank you!!

Purchased my first investment last year in October using creative fianance (owner finance). It was 16 units with a mix of 2 and 3 bedroom townhouses. One of the 3 bedroom units that was occupied at sale has a chair lift inside to access the upstairs. I was told by the previous owner that he put it in for a past tenant and that the couple currently renting asked to keep it as they may need it in the future. He told me he did not service it and that it was the tenants responsability.  Last week i get a call from the tenant asking me to stop by to take a look at something.  When i arrived she handed me a bill for $200 for batteries that had been replaced in the chair.  I explained that i wasnt going to pay for it and she told me that her understanding was that if it was physically part of her unit and provided by me that I was required to service it.  Is anyone out there familiar with ADA accessory rules and regs? Id like to take it out but if I do they would have to move as they now use it daily to access the upstairs.  They are decent tenants but their rents are $300 below market as of right now even after two recent rent raises. Maybe it would be better to add another increase to cover costs associated with it?  My concern is that if it breaks to a point where it needs to be replaced I will be stuck replacing it.

I would appriciate any feedback!!  

Hello All. I am looking for some advice in regards to managing my portfolio's. I have a few different LLC'c that hold different porfolios of residential properties. I plan to buy other properties and portfolios in the next few years and am wondering if I should start a new LLC just to manage the properties or can I continue using one of the current LLC's? Currently I use the first LLC I started and own a few properties in. The name is more "management" oriented and i have stationary and some logos already in use with that name. I am settling on a few more properties in October under a new LLC and have all of the bank accounts created in order to keep the money separate. I am wondering if you'd recommend that I start a new LLC to manage the different LLC's or can i keep using the first one and just treat the second LLC as if it was a different owner and I was just managing the units? I hope this makes sense? I know its best to keep all LLC'c separate for legal purposes but i can't see a benefit to managing them all under different names. I think that would get a little too confusing? Any help would be appreciated.

Dave

Great Points!!  I had not considered transferring all of our leftover funds into the savings but it does sound like a good structure!

Thank you So Much for the information. I am grateful and will do my best to impliment this strategy!

Hello Friends! As a brand new investor I own two portfolio's totaling 11 properties consisting of 19 & 16 Units. Both portfolios are owner financed and in two different LLC's. I am self managing for now as I want to get the experience before hiring a property manager. I am currently using Doorloop software and would like to know if anyone out there is in a similar situation that would be willing to discuss how they set up the bank and owner accounts etc... Would love to hear from anyone that owns and self manages. Best Software? Helpful Advise Appriciated!

Thank you. You are likely correct in some situations however all expenses including maintenance, taxes, insurance are out of that already so the only thing coming out of that $5100 is Cap X and Vacancy. Where I am located vacancy isn’t an issue unless we are remodeling so this isn’t something we consider. The last time we posted a unit for rent we had over 200 applicants. So far the 5100 is our profit however our goal is to save it and reinvest it into other projects to increase value. Thank you for the advise!!

Investment Info:

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

Purchase price: $1,250,000

While attending a church function I met a man that had some multifamily units. He mentioned that he and his wife had just bought a camper and had plans to travel. After a month or so of listening to the Bigger Pockets Podcasts I got the motivation I needed to call the man and requested a meeting. Within 8 Months we had the deal worked out and I settled on the properties. 7 Properties, 19 Units. $16,840 in Monthly rents, 11+k in expenses and rental payments, $5100 in cash flow PROFITS!

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

Hearing others talk about "Financial Freedom" intreagued me as I have always worked my butt of for everything I have. I began listending to podcasts and studying what others were doing and decided it was worth a shot!!

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

Met a man at a local church function and began talking to him about life and family. He mentoned he had rentals and wanted to get away from them to travel. After months of discussing his needs and our desires in owning property we worked out a deal. I asked him what he needed out of the sale and created terms that would get him what he needed. Negotiated over coffee and breakfast over about 2-3 months and then began working on the actual legal documents and structuring our deal.

How did you finance this deal?

100% Owner Financing - GO PACE MORBY!!

How did you add value to the deal?

We will value add by doing improvements to the properties.

What was the outcome?

Positive Cash Flow From Day 1!

Lessons learned? Challenges?

Properties produce good income however they need work as they are older and require attention. So far we are spending about 3 or 4 hours a week working on imprevements.

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

No, Did this all by myself and with the help of the Bigger Pockets Community!!

Investment Info:

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

Purchase price: $1,250,000

While attending a church function I met a man that had some multifamily units. He mentioned that he and his wife had just bought a camper and had plans to travel however he had to be careful not to travel too far for too long due to the amount of tenants he had. After a month or so of listening to David, Robert, Tony, Ashley and Pace I got the motivation I needed to call the man and requested a breakfast meeting to discuss some real estate stuff. After about 6 weeks I had gained his trust and we began to discuss pricing and deal structure. Within 8 Months we had the deal worked out and I settled on the properties. 7 Properties, 19 Units. $16,840 in Monthly rents, 11+k in expenses and rental payments, $5100 in cash flow PROFITS! It was a blessing and would have never happend if I had not listend to TONS of podcasts and watch TONS of videos on owner financing and deal structuring. I have another large deal in the works with another owner and plan to settle on another 16 units before the end of 2023 if all goes well. Gods grace was laid upon me my life is changing for the good in so many ways!!

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

Hearing others talk about "Financial Freedom" intreagued me as I have always worked my butt of for everything I have. I began listending to podcasts and studying what others were doing and decided it was worth a shot!!

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

Met a man at a local church function and began talking to him about life and family. He mentoned he had rentals and wanted to get away from them to travel. After months of discussing his needs and our desires in owning property we worked out a deal. I asked him what he needed out of the sale and created terms that would get him what he needed. Negotiated over coffee and breakfast over about 2-3 months and then began working on the actual legal documents and structuring our deal.

How did you finance this deal?

100% Owner Financing - GO PACE MORBY!!

How did you add value to the deal?

We will value add by doing improvements to the properties.

What was the outcome?

Positive Cash Flow From Day 1!

Lessons learned? Challenges?

Properties produce good income however they need work as they are older and require attention. So far we are spending about 3 or 4 hours a week working on imprevements.

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

No, Did this all by myself and with the help of the Bigger Pockets Community!!