All Forum Posts by: Dustin Somers

Investment Info:

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

Purchase price: $330,000
Cash invested: $82,500

Turn key Triplex in Sothern CA provides $230 / door

How did you finance this deal?

Conventional

@Chico Ford. Thank you for your insight. I currently analyze one or more properties a day but i have realized i may be spinning my wheels because i am doing these on properties all across the states. I may be getting better at analyzing but I’m not learning my direct markets. The advice i have received has made some of my faults clear Thank you

@Brandon Sturgill that is an incredible return in appreciation. In my local region i don’t expect prices to continue rising like that. I should consider buying in other areas that show market growth like that.

@Tom Wagner you make a really good point of finding the 75-90 percentile of my market and making that my goal Good advice.

I find my self questioning my deals based of other parts of the region

@AJ H. Can you give me more detail on what you consider stabilized ?

I agree Idle money is ultimately costing me and I am actively trying to get it into a property, In my area the market is pretty high in fact its higher than we have ever experienced. I'm not real concerned about it falling out because we have a great and stable demand with lots of large companies moving into the area. That being said I do find decent deals providing returns in the range of 7-14% CoC and Cash Flows of 2-300 / Door. Thus far in my journey I have stuck to the traditional 25% down / 30y mortgage

Property one OWNED is a duplex with a total Cash Flow of $502 and a CoC of 8.52 after all cost including Cap Ex and PM

Property two a Triplex Under Contract will provide a total Cash Flow of $528 and a CoC of 7.42 after all cost including Cap EX and PM

I feel like these are solid base hits but neither one make me feel like i hit a home run

I really appreciate the insight from both of you

DS

When evaluating potential investment properties. What are your target number that make you say yes or no ?

Min cash flow ? Must have a COC of ? I now we can't just draw a line because each property is different but does anyone have a hard No or rule of thumb

I search for multi family duplex, Tri, and Quad in the range of 200-700k

Thank you In advance

Dustin

Investment Info:

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

Purchase price: $217,000
Cash invested: $62,000

Duplex Rental Property

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

I find the security of Multifamily appealing compared to single family residence.

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

I was informed of this potential opportunity through another investor and friend i the area, I was able get the purchase price down 35k through negotiations after a low appraisal came in

How did you finance this deal?

Traditional 20%/ 30 year

How did you add value to the deal?

Both tenants moved out within 6 moths of the purchase, we took both of these opportunities to paint, replace fixtures and upgrade / replace appliances.

What was the outcome?

Through these improvements we where able to raise the rent on each unit $100/M

Lessons learned? Challenges?

Manage cost on improvements to maximize cashflow