All Forum Posts by: Gavin Pelkington

Investment Info:

Single-family residence other investment.

Purchase price: $180,000
Cash invested: $40,000

Off market BRRRR deal. Purchased the house cash with a partner. Renovated the property investing another 40k increasing ARV to roughly 265k. Holding as a cash flowing rental now.

How did you finance this deal?

Cash with a partner.

How did you add value to the deal?

Full cosmetic rehab.

Avail is simple and easy to use. Starting out I believe this is all you would need to make things run smoothly. It is free and everything can be streamlined in this software including, online payments, applications, tenant screening, and leases. 

Looking for advice!

I am considering creating a entity involving me and two others. One of the partners has the ability to completely fund the deals and has enough reserves to pay all cash for multiple properties but would be hands off. He is already invested in commercial properties acting as a silent partner and getting a good return. Me and the other partner would be the ones operating the business day to day. For this to be of interest to the investor I believe a 15% cash on cash return would suffice. With that being said I believe that MTR/STR would be the best way to achieve these returns.

1.) How would you structure this entity?

2.) What markets would you be looking in to get the best returns?

3.) General advice on how to approach this situation? 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $225,000
Cash invested: $35,000

Purchased this as a primary residence with a conventional loan allowing me to rent out my first property. My plan would be to live in this for a year and start the process over again. Strategically, this is more of an equity play as it is located in a highly rated public school system and in an area with lots of growth.

I am a fan of Avail. Pretty easy to learn. It is user friendly for both landlord and tenant. I would consider it most beneficial for people just starting off. 

It would be depend on the market I end purchasing in. I believe most lenders would require a long term lease agreement for me to utilize the rents from the second unit for it to count towards my dept to income ratio. 

That being said I would not be apposed to transitioning into a different strategy after the seasoning period of the loan.

I am interested in making a career change into real estate. 

Outside of being a real estate agent what are some jobs that would allow me to grow my knowledge and developed applicable skills geared towards the real estate industry? 

Looking for Advice!

Current Situation: I currently own one single family rental property that cash flows roughly $500 a month. I am also in the middle of purchasing another single family property that was more of an equity play but if rates go down in the future I will then be able to cash flow on this property as well.  Both of these properties are in Fort Wayne, IN. 

I am now looking to move South and I am currently thinking Florida but I am not limiting myself to this market. I want my next property to be a house hack whether that be a duplex or ADU. Considering the finance aspect I want to make sure I am thinking through this clearly and not missing anything. With two current rental properties this would essentially offset my mortgage dept. In purchasing a duplex or property with an ADU the lender would also consider projected rental income from the other unit. If I finance as a primary residence I would not be required to put down 20%.

Any markets in particular I should be considering to achieve this?

What are the finance aspects that I am not considering? 

Yes, I purchased this property using a conventional loan the summer of 2022. I put down roughly 20% on the property. Fortunately I was able to find this unique deal through a great realtor. I believe this to be a rare find as I would actually consider it a mother-in-law suite but it is currently zoned as a single family residence while sharing a wall with the other unit. It is a 3 bed 2 bath property with roughly 1500sqft of living space. It is located within a great school district and a popular part of the city. There is a definitely room for some rehab to be done which I plan on doing in the near future to force some appreciation.