All Forum Posts by: David Huynh

Hey Michael, I'd agree with everyone else, expenses are way too low. I do think that the price per unit is a little over the top. Consider looking into Milwaukee, it's not too far and the cap rates seem to be very high. The furthest I go is Rice Lake.

What's the real asking price? 169k and current rents being $1300 will have no buyers. 

Horrible deal. It doesn't even fit anything near the 2% rule. Why do you think it would be a good deal?

@Jay Hinrichs 40k conservatively

Call it winning the lottery... call it being lucky... call it what you want.

This specific purchase has taught me one HUGE thing in real estate and business. Patience and networking pays off. 

This post has everything to do with the lessons I've been taught, rather than the numbers.

Original listing price: 70k

Purchase price: 10k 

Annual rents of $15,900

Property taxes: $900/annual

Insurance: $1000/annual

Garbage: $600/annual

Vacancy: $1000/annual (0% in the past 8 years for the residential dwellings.)

Repair: $1000/annual

Water/heat/electric: all separate

Networking: For the past 3-4 year I've been very interested in the real estate game and spoke to a loan officer that was wiling to deal with the 100+ questions I've had. She has helped my family and friends with over 10+ loans for primary residences and I believe she got the point where she wanted to refer me to someone else - a real estate investor, my mentor/friend/agent. 

Friendship: My friend Nick and I have been working together acquiring as many B&H investment opportunities that fit my investing criteria. In July of 2015 we were walking through a downtown near his office and looking at the storefronts. He had shown me a store front with 2 residential units.... and it begins.

Backstory on the property: There were two gentlemen who owned property in/around this area and there partnership was dissolving. They wanted out. Nick had been courting and dealing with this partnership for 3+ years, waiting for them to crack.)

This offer was supposed to be HIS DEAL (he'd been courting for 3+ years), he submitted an offer of 10k and the owners accepted! Unfortunately he had been tied up (not financially) but his wife and him had a rule - only 2 projects at a time. He was tapped on this one.

I got a call Friday morning around 10 AM, a voicemail, and a text message from him. He asked me "Do you have 10k? Cause I got you a deal of a lifetime and you owe me"

Lesson I've learned:

1) Be patient, very patient. He waited 3 years to the owners to accept on this property

2) Network - You do not know who will introduce you to who. My friend gave me a cash cow.

3) Make rules/Define goals- Thank God he had a "only 2 projects at at time" otherwise I wouldn't have gotten this deal. Really, make real rules or define what your goals are. If you are B&H then B&H, if you fix n flip, then fix n flip. There are always plenty of opportunities out there. Make sure you do not get caught up in seeing/creating various opportunities because others are doing well there. 

4) Remember why you got started - I got started to create financial freedom for my family and to create wealth.

BTW does your godfather want to sell? I have a partner who is interested in purchasing something in that size range. 

I would recommend buying a small mutli-family (2-4 units) and using the rent to offset the mortgage payment.

For example - you qualify for 130k but if you have 3 additional units at $700/month, 75% of $2100 could be used as additional income. You will need to have 3 months worth of reserves in your bank during closing also (can be gifted from relative). Talk to a local lender that works with real estate investors that will help you walk through the qualification process. 

PS - There are no good cash flowing properties on the MLS currently.

May you pm me the address?

Thanks for the input! The big rehabber in the area also recommended for me to get rid of the awnings or store them somewhere. I will definitely post pictures and info about this flip once it's all finalized! 

I'll continue to post and ask for recommendations on the interior and basement as we move forward!

Hello all,

What color would you choose for this front door? Stucco exterior in an up and coming neighborhood. It is becoming more and more of a vibrant neighborhood. 

There is also a side door and a rear door - would those typically be the same color?