All Forum Posts by: Emma Redfern

Refinancing my first Brrr deal and I’m looking to buy my second property near cinci/Covington because I’m wanting to get into mid-term rentals. I currently invest in Indiana. I’m looking to see if the mid term rental market is good in that area?

just recently purchased my first multi-family property and I'm looking into buying at least 2 more this year. For financing would it be smart to get loans through my personal or create an LLC? I'm unsure of how having 3 conventional loans would affect my credit or DTI would affect me personally. I'm also curious what lenders would offer me for percentage on the down payments, I put 5% down on my current

Quote from @Sean O'Keefe:

@Emma Redfern remember to consider bonus depreciation and the De Minimus Safe Harbor Rule for renovation expenses. 

Thank you!!!

Quote from @Evan Polaski:

@Emma Redfern, a local agent, or quick search on zillow/apartments.com or the like will tell you if those rents are reasonable.  As for getting that from your current tenants, I would say you will very likely get some real pushback.  You are seeking a 50% - 62.5% rent bump.  I am wondering if your tenants can even afford those. For me, $800/mo means a NET take-home pay of $30k, pre tax and benefits, that is likely a $50k salary.  I get that isn't a ton and maybe your tenants are making that or more, but in my experience, the lower the rents, the less elastic the tenant is to rent increases.

All that being said, if those rents truly are market, I would give them a long notice, like 3-4 months, and be prepared for them all to move out.  Also, I am assuming you already know this, but you can't change any existing leases mid-lease term.  So if they are all on leases from last owner through say, September, 2024, you can't make any rent bumps until then anyways.

Thank you for the feedback! I believe you are right about the pushback for 50% rent increase, which was something I was hesitant about.. I’ll be sure to talk to local realtors in the area. From checking Zillow and other places the rent I want to charge seems very reasonable 
The tenants are also on a month to month lease
Thank you!

Closing on a multi family unit in Aurora, IN

Asking price:129,000 Close:119,000

Unit 1: 2 bd 2 bath. Unit 2: 1bd 1bath. Unit 3: 2 bd 2bath the 2 units currently pay $500 and the other pays $400 

I plan to renovate floors cabinets paint etc in every unit. my expected total for renovations (I am doing myself) will be $5500 I also accounted for exterior fixes on the outside 

The current rent is below average for the area, I want to charge $750 for unit 1, $800 for unit 3 (it’s bigger) and $650 for unit 2. 

Does this seem like a reasonable amount to start charging the current tenants? 

Would love to join!

Investment Info:

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

Purchase price: $119,000
Cash invested: $6,300

3 unit multi family home