All Forum Posts by: Emillio Henry

 That’s awesome advice, I’m blown away at the number of direct mailers you were sending out, definitely makes my campaign seem pretty pointless. Lol. i’m just gonna work up the nerve and go knock on the doors. i’m guessing this post was more or less a confirmation of what I already expected to be the answer, grow a pair and go knock on doors lol

Thank you for the response

I’ve been sending out direct mail for a few months with no responses however I just ramped up my range and volume of post cards sent. From 10-20 week to about 100, Some repeat. My question is should I also follow up with door knocking? Distressed and pre-foreclosure properties.

I got super lucky two years ago with my first batch of hand written notes which I took from beardy Brandon and landed my first rental which has been a god sent!

I guess it was beginners luck! 🍀 however it’s been dud central since, my other deals have come from relationships only.

Also trying to find some scripts to set a guide line on what to say, I’m pretty good with talking with strangers just nervous to approach people facing foreclosure.

Thanks for any advice.

Investment Info:

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

Purchase price: $350,000
Cash invested: $100,000

Buy and hold of a multi family college rental house. Off market deal found by letter writing.

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

Potential for higher than average rental income. Proximity to multiple universities

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

Off market driving for dollars. Sent the homeowner a letter and spoke over the phone for the roughly 4 months and come to a fair price that worked for both of us.

How did you finance this deal?

Commercial lending through my mortgage broker.

How did you add value to the deal?

Sweat equity! Converted an extra living space into a bedroom and added a sprinkler system to legalize the 3rd floor.

What was the outcome?

Fully rented after renovation.

Lessons learned? Challenges?

My only regret is not waiting a little while longer before jumping in to my next fix and flip because I wasn't able to successfully BRRRR the property and pull out my equity with my current debt to income.

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

I worked with a mortgage broker only.

Investment Info:

Single-family residence fix & flip investment.

Complete home renovation.
Custom kitchen with granite countertops.
Lifeproof LVP through out.
4 bedroom, 3 full bath.

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

Extensive rehab needed which added a lot of equity to the deal.

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

Off market seller

How did you finance this deal?

Hard money, joint venture

How did you add value to the deal?

All construction performed by GDMH realty and sub contractors.

What was the outcome?

Home sale with a healthy ROI.

Lessons learned? Challenges?

Paid sub contractors to prematurely. I should have listened to lessons learned by other and only pay once work is done.

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

I sold the property myself with my office KW Realty Partners

So I will be renting by the room and the unit count doesn’t really matter in that regard. It’s really about the bedroom count. I can use my third floor unless I have a Sprinkler system and the savings is about $20-30k upfront over future value I guess. I know once I make it a two there’s no way in hell I’ll be able to put it back as a three  in let’s say 15-20years. 

So I’m wondering if Converting my three family “college house” into a two family is an unwise choice. In reality the home functions as a single family however for building code, reducing the three family into two would put me in the local building codes and out of the strict state codes. 

In order to utilize two already existing bedrooms and about 500sqft living room I need to install a sprinkler system. In a three family under state code i would have to sprinkler the entire house, in a two family “local” code i would only be required to sprinkler third floor to first egress, which is a door on the first floor; so I’d have to sprinkler third floor and stairwell leading to a door on the first floor.

I plan on keeping the property long term, and just about the entire block that the house is on are college rentals next to a major university. 
i believe my house is the only legal three family on the entire block of about 40 houses.

Comps are hard to pull because of this this, just about everything I pull and appraisers have pulled are two family residences. 

Any direction would be greatly appreciated.

Thank you 

-Emillio Henry 

@Jason Bott thank you I appreciate the advice big time. 

@Jason Bott @Chris Webb so I should look for brokers? Or call around to agents on my area affiliated with larger companies such as geico and Allstate? 

What type of insurance is needed for a college rental house? currently duplex with 7 bedrooms rented individually soon to be 10. 

Any luck with a particular insurer? special considerations for student rentals?

Thank you for any advice

@Ryan Thomson thank you for the response, yeah I’m definitely over thinking this for sure. This is my first rental property and on top of that it’s like taking on ten units lol 😂 a little overwhelmed for sure. I’m trying to figure out the happy median with tenant to amenity ratio. I do think your right though, perhaps 4 or each is a bit overkill, I’ll plan for two and go from there. You guys are awesome btw, thank you for all the feedback!