All Forum Posts by: Evan Dobrowski

its hard but there are deals out there if your excepting of sweat equity. I recently closed on a property for $385, no bid up issues. Reason being is the property looked like hell. Dog poop carpets, stains on most of the walls, siding needs pressure wash and paint, etc. But the house still qualified for standard financing and I've already found hardwood which will be refinished under the carpet and painted interior. Should get about $1800 per unit. This is a duplex south Everett area 3bd 1bth both sides. Deals are out there but I look at on and off market multiple times a day.

Hi Chase, I was in a similar boat in my high school days and I will say the major flaw to the plan is your lack of income. If you find a co-borrower that could work depending on the title option you go with but I did not choose to go this route because I did not want to ask someone to take on that potential liability for me. Second item I did not notice you calculate bus the HOA fees associated with a condo are generally $500 at the low end. I stay away from condos especially in the Seattle area for that reason.

All that being said, if you find a way to make it work you will be on your way to a successful real estate career and early retirement if you are looking for that. I invest in the greater Seattle area and stick with duplexes and single family. Using the BRRR method, during the rehab my wife and I live in the house for just over a year to qualify for the next purchase to be considered our primary residence.

My advice is don't settle for a Seattle condo because you feel that's the only thing you can afford. Check out areas just outside of Seattle. If your house hacking you've got a carpool, if not you've got the train and current expansion of the light rail system or get a car, motorcycle, etc.  Condos don't generally go up as fast as single family and they don't sell as fast either which can be problematic when you want something different. I would look to the north lynnwood area, light rail is almost there, but great deals are still to be had, those houses are going to be valued at Shoreline prices in a few years once commuters realize the light rail is complete and the school district is comparable. 

@Eric Reid

Hi Eric, when running the numbers originally I was expecting to be paying $1200 a month.  Due to rental rates rising so fast in my area I was able to do some small remodel work costing less than $1K and raised the rent $200 more than expected.

My total housing costs are $1K which includes all utilities.  When we find out next property and move out the going rate for our side of the duplex should bring in an additional $1400.  Cash flow at that point will be $400 a month.

Investment Info:

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

Purchase price: $210,000
Cash invested: $12,000

Purchased as a house hack duplex with minor updates needed due to career move. Great rental income to supplement the mortgage but not currently cashflowing. We live in one side of the duplex. Monthly costs are $1800, income is $800, cashflow is -$1000. But living expenses are cheap and when we have found another place this should cashflow about $300 a month. Unit A (WE LIVE IN) 3bd, 1bth. Unit B (RENTED) 1bd, 1bth.

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

Career move required finding a new place and I avoid paying rent live I avoid the plague.
This was a duplex that needed some rehab.

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

MLS using a Realtor

How did you finance this deal?

FHA conventional mortgage

How did you add value to the deal?

We have been slowly remodeling with new bath vanity, new flooring, etc.

What was the outcome?

Currently living in Unit A and renting Unit B.

Lessons learned? Challenges?

When walls are connected make sure the insulation/sound deadening is great, or pick a different bedroom to sleep in. We opened up the wall and fixed that problem.

Investment Info:

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

Purchase price: $81,000
Cash invested: $116,000

Second property purchased using cash and HELOC from previous property. This was a foreclosure that needed serious repairs. Total purchase price was $81K, total repair costs were $35K, ARV is $395K. This property has two residences on one lot along with a large shop building which is rented to one of the tenants. Great cashflow and when I find my next deal plenty of equity to pull from.

I call this our BRRRR strategy property done the hard way because we did the repair work mainly ourselves.

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

The property had good bones, had been on the market for over a year as a foreclosure, and I saw major potential.

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

Found on the MLS foreclosure listings, negotiated using a local realtor

How did you finance this deal?

Finances with personal cash and HELOC from previous property.

How did you add value to the deal?

Completely gutted one house and did a full remodel on the basement of the other house. Upgraded electrical using an electrician and general updating. Along with clearing an acre of blackberries by hand...ugh

What was the outcome?

Two years of life spent every weekend working on this property, great rental with fantastic cash flow, will be selling for huge gain or pulling equity out.

Lessons learned? Challenges?

I learned this is not the right way to invest in real estate. Don't get me wrong, it was a great find and a great purchase with a gorgeous outcome, however, I want to turn quick BRRRR projects using skilled contractors. Spending my weekends for two years away from family was a mistake and something I will not repeat.
Good news is this was the project that created enough capital for me to continue with my investments.

Investment Info:

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

Purchase price: $158,500
Cash invested: $7,500

Purchase price-------$158,500
Repair Costs-----------$22,000
Current Valuation---$325,000
Bought this property as a foreclosure; first property I ever purchased. It started as a house hack duplex but this quickly caught the BRRRR bug for me. Over the course of 2 years I remodeled this property and pulled a HELOC to invest in more properties.

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

I originally purchased as my personal residence to make a little extra income house hacking.

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

Purchased off the MLS with a realtor.

How did you finance this deal?

FHA Conventional loan

How did you add value to the deal?

Remodel

What was the outcome?

House hacking worked great, remodel added value, still a great rental.

Biggest roadblock in my area is the prices have been driven up too, very few properties cashflow. Trying to find small multifamily deals that fit the BRRRR strategy is getting tricky. Currently trying to find ways to enter other markets but finding the right people is challenging. Would be great to find a syndication in a market that is still cashflowing.

Hello Vikas,

I am located in Auburn and would enjoy meeting with you to talk about this venture.  I currently own 3 single family duplexes and have always thought I would prefer to enter into the world of multifamily properties.

Feel free to PM me.

Evan

Hi Kevin,

Thank you for your reply. I will get in contact with you asap. Sent you a connection request, but I'll also email you shortly.

Hi everyone,

I am in search of local private money lenders. I have had several deals fall through lately because the property ends up being cash only due to repairs.

I currently have a deal where I just need $70,000 to purchase and $20,000 for repairs the ARV is $225,000.

Can anyone help direct me to a good private money lender that doesn't want 20% interest?  Or is anyone out there a private money lender in Washington state that would like to meet for coffee and go over this deal?

Thank you,

Evan Dobrowski