All Forum Posts by: David Tremblay

Hey Ryan, I think this is a great idea! It's much more affordable and when you compare to the rents vs out in CA the numbers make way more sense. Ideally if you could purchase a 1-4 unit and owner occupy it you could get into something with very little money down. I happen to know a guy who could both help finance it and insure it. Sounds like you are finally coming to your senses.

Investment Info:

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

Purchase price: $351,500
Cash invested: $15,000

This property was bought as a house hack. I am currently living in the largest unit which has 3 bedrooms and one bathroom with a fully finished basement only this unit has access to. Once I move out the market rate would be about $2200 as of today. The other two units are both one bedroom one bathroom currently renting for $850.

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

I've always wanted to get into multifamily and I finally was able to do so.

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

Found on the MLS and was about to get the max seller credits to go towards buying down the rate to 5.25% and the down payment/closing costs.

How did you finance this deal?

FHA first time home buyer loan 3.5% down.

How did you add value to the deal?

The larger unit I have gone through and painted, ripped up old carpet and replaced with wood floors, replaced some appliances, replaced light fixtures, replaced hardware on doors and cabinets.

Lessons learned? Challenges?

Never pay a contractor in full until the job is done no matter how well you think you know them! Something that was always told to me but thought didn't apply to me and ended up learning the hard way.

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

Yes, Arden Mcswain Stuckey with Keller Williams is the absolute best!

Hi everyone,

I recently purchased my second property which is a multi family home. As I’m sitting here thinking I’m not so sure how to go about tracking rents paid as well as security deposits made by tenants. When I only had 1 tenant it was very easy to keep track of but now and as I continue to grow I realize this could get out of hand if not properly addressed. What is everyone’s recommendations??

TIA!

Hi Everyone,

I was wondering if anyone here has experience with doing a refi on a commercial property using the income approach? If so, what cap rate was used and for what building use type (multifamily, retail, etc.)? I was told by a commercial mortgage broker they use 8% around this time last year. 

Thanks in advance!

Investment Info:

Office Space commercial investment investment.

Purchase price: $205,000
Cash invested: $10,250

This deal involved some creative financing. I purchased a office building to run my insurance agency out of. After purchasing I was able to divide the space and rent out the other half of the building to a real estate broker.

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

Great cash flow for the money put down and the ability to force appreciation based on new rental income will allow me to pull some equity to use in another deal.

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

I wasn’t looking for it the deal was presented to me by someone who worked for the city I do business with and it was too good to pass up.

How did you finance this deal?

80% financed through a traditional commercial loan with a 5 year fixed note with a 20 year amortization. 15% financed through a 5 year fixed gap loan.

How did you add value to the deal?

Separated the space and added a bathroom. This allows the building to have 2 separate offices.

What was the outcome?

So far so good.

Lessons learned? Challenges?

Use local resources and personal networks to find out what is available for not only properties but financing options as well.

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

No agent was used for this deal.