All Forum Posts by: Dustin Lavender

@Cirilo Villar

I started off in roughly the same financial and credit position. I leveraged my income and that $4500 in my case, to convince the bank to sell me a foreclosed little 2/1 for $30k. I kept it for a year during which time I worked on it, fixing it on the weekends when needed, and keeping it rented out as best as possible. At the end of a year it appraised for $60k giving me roughly 18k usable equity (if the bank will loan 80% ltv). I used that 18k to buy a similar property and cashed out the extra cash, like 12k. There was instant equity in the next property and within a years time, I went from 1 unit to 10 and then leverage all of my equity to purchase a 10 unit, and now 3 years later I have 23 doors. It is doable brother. Good luck.

Hi I have an apartment building that I am attempting to sell. It has been listed with an agent for one year with roughly “0” leads. I’m not complaining because I make pretty good money on it as it sits, but I also would make a fair bit if it sold and be able to pay down some debt I owe and invest in other areas.

My question is, where should I be going to sell this thing. My agent has it listed on the MLS and that is it. No sign, no leg work, just listed....

There has to be a better way.

Please help!

@Lee Stephens

I pay electric water and trash for all of my properties for 2 reasons:

1. I never have to call and start a cleaning ticket, have utilities turned on for cleaning, worry about heat, etc.

2. I make a ton of money on it. Well not a ton, but a good bit. I live in a low rent area, Arkansas, but purchase prices are low as well. Here is an example. 10 unit apartment building all 1bed/bath paid $175k. Base rent would be 350 max. With utilities paid, I get $550. I figure water/trash to be roughly $50 per unit and electric to be around $100. I have had a few tenants go over the $50 water, but rarely. My leases states those numbers as maximums I will pay and the tenant is responsible for overages. My actual average water bills are $40 and electric is $75. I’m making an additional $85 per unit by paying utilities, because I could never ask $435 and get it, but by offering utilities paid, I can.

@Wayne Brooks got it! Thank you!

@Mary M.

it doesn’t help me the seller,at all. Except it might make the deal seem sweeter to a buyer. This a multi family unit. 10 1/1 and som extras. $425 is a lot of ask. Sometimes a buyer may have cash to fund purchase but be strapped after. I just wanted to know what kind of leverage I could employee to sweeten the pot.