All Forum Posts by: Glenn English

Thanks Jeremy, with no lease I treat them as month to month. 

I have a 2 BR / 1BA condo in Plaistow NH which I'm considering selling. I've owned it for about 3 years now. I think I can get $180K - $185K for the condo. The current tenant pays $1500 a month in rent and would like to stay there. If I sell, I'm thinking the tenant will need 60 or a 90 day notice if the new owner wants to live there. I haven't raised the rent in 2 years. The HOA is $290 per month.

The current tenants never signed the renewal lease last year (2021) and I never enforced it. (I know, this was dumb). Just wondering if I should make them sign a lease now, or does it really matter if I'm going to sell it? I have not yet let them know that I am going to put it on the market or find an investor who will let them stay there.  Still thinking about it, but if you are an investor interested in it, please feel free to reach out to me. 

Investment Info:

Single-family residence fix & flip investment in Stoneham.

Purchase price: $315,000
Cash invested: $180,000
Sale price: $519,000

Purchased a SFH off an auction website and funded the rehab through an investment brokerage and private money and ultimately cashed out my 401K to finish the project. :(

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

I was looking to do fix and flips, and then purchase multi-families to brrrr for cash flow

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

I had been looking at this property that was on HUBZU. I wasn't able to negotiate since it was an auction website however I watched this property come off and on for about 6 months.

How did you finance this deal?

Velocity Mortgage Capital as well as a private loan and then used my 401K funds.

How did you add value to the deal?

I acted as the GC and found my own subs and managed the whole process. In the end, I would have been better off hiring a GC to deal with all of the headaches, however I learned a ton by doing it on my own.

What was the outcome?

I broke even on the flip, but because I had to take out a loan against my 401K, I wasn't able to pay it back in time and ended up losing all of my 401K savings and paying taxes and penalties. This was my biggest regret. Only use your 401K for very short term use if absolutely necessary and I would avoid borrowing against it if at all possible.

Lessons learned? Challenges?

Trying to do too much myself...and not having my funding in order. Went over budget. Many lessons learned.

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

I am a licensed agent so I purchased and sold the property myself and was able to save on buy and sell side commissions.

Thank you for the feedback. I am planning to hold it now, but just wanted confirmation since this is my first buy and hold unit. Now let's hope I get a good tenant!

I don’t own any rentals so this would be a first but I’m not sure whether to keep it or flip it. I recently purchased a foreclosed condo in New Hampshire. The tenant hadn’t taken care of the unit so it’s in need of about $9k in repairs which I’m working on. I paid 112,000 in cash + I’ll put in $9K for improvements = $121K.

Rents go for about $1400. There are 12 units in the building, all 2 BR, 1ba. Heat and hot water included in rents. $270 HOA fee. I could cash flow about $400 a month after doing a cash out refi or flip it and net about $10k and find another..I know the smart answer here is probably to hold it, but I'm trying to accumulate some capital so I can continue to invest in flips and eventual more buy and holds. I'd be leaving about $8-10k into the condo and flowing about $400 a month which isn't too bad.

Thoughts?

Thanks for the feedback...It's all good! 

I'm under contract with a condo that needs so rehab. I'll BRRRR it or flip it depending on what the appraisal comes back at (I have a general idea), probably not worth flipping but I can probably get most of my investment back on the cash out.

I'll blog my last flip soon which was pretty much a wash financially but a great learning experience.

@Caleb Heimsoth thanks - I will check them out..

@Jay Hinrichs My original plan was to do quick flips, and build up enough capital for my flipping business w/ multiple flips going on and then start investing in multi-families with the help of a commercial lender at some point. I also want to house hack so I can stop throwing away money on rent..but I have 3 kids and finding the right place has been a challenge. 

@Syed H. good points especially in my area north of Boston where it can be difficult to reach even close to a 1% rule. I'm starting to look in Southern New Hampshire where the numbers seem more attainable. 

 Thanks Scott, yes I've been to a few meet ups in the area..I'm also a realtor so there's always a few mortgage guys around to talk with. 

Thanks Scott- I was thinking about that and will try it. I'm going to look at a condo that needs some work tomorrow. And good advice about finding a good mortgage guy! I just wrapped up a flip that basically took up the last 8 months of my life where I made very little money. I learned a lot and I don't want to make the same mistakes.