All Forum Posts by: Anthony Martin

@Jeff Stephens I did try the seller finance option, I actually really wanted it for this opportunity to try and decrease out of pocket expenses.  Unfortunately, response was pretty solid with "I'd rather kill the cow than milk it for months." so I think that option is off the table for this seller.  

One of my concerns was trying to unload a property later and not knowing how that would work with a portfolio, so individuals might be the way to go!

@Jerry Padilla

I was given a package price rather than individual prices for each property.  Here's what I have so far

2 duplexes - 4x 1 bd/1 ba

(Bldg 1 market value - $96K, Bldg 2 market value $115K)

$120K asking

75% occupancy

rents - 2 @ $450, 1 @ $650, 1 @ $0 (vacant - median rents ~$485)

3 Duplexes - (above units) + 2x 2 bd/1 ba

(Bldg 3 market value - $134K)

$230 asking

66% occupancy

rents - 1 @ $750, 1 @ $0 (vacant - median rents $775)

I think I'm really just trying to find out if I need to have a separate mortgage on each property or what my options may be. I'd definitely prefer to have conventional lending with lower rates in place than to have to worry about higher interest with HML and the stress of refinancing in the next few years not knowing how rates may change.

Good day BP!

Yesterday I had an opportunity present itself that looks pretty fair on the napkin.  Still getting some numbers to create a more thorough analysis, but my question comes in for financing.

The opportunity is three duplexes. I haven't quite been able to wrap my brain around financing with a small handful of properties. Will I need to mortgage each property individually? If I use HML to purchase all three, would it be considered a type of portfolio loan? If I wanted to sell a property later and not all three, what would my options be? Ideally, I'd hold them all for 10+ years to maintain the income. What would my best option be for attaining financing for this type of situation when I've already got two mortgaged SFRs? Any insight into this or something I might be completely overlooking would be greatly appreciated. Thanks in advance! (And if there are any lenders out there interested in helping with this acquisition in TN, shoot me a message!)

Anthony

@Nick Fegley I'm somewhat in the same situation.  I have a very trusted friend dealing with everything local since I am not in the area.  They were doing it for free at first to help me out, but we agreed on a fair payment of 5% of gross rents/mo which comes out to less than $1400/yr for them.  They collect rent and transfer it to me as well as deal with tenant relations.  It keeps things very simple and it saves me a lot more headache than dealing with a PM firm charging 10% and extra fees.  

I see this as a great opportunity for your friend to help build his own management resume which may be attributed to him not wanting a monthly commission.  But I believe a set cost every month will average out your costs rather than a per event basis.  Your offers for payment of services seem fair, but as mentioned above, can potentially add up quick if a big issue picks up with tenants.

That said, as you requested.  Your prices do seem fair, just weigh the 'worst case scenario' for you and make the best logical choice for your operation.

@Michael Svoboda I love seeing all the different models that people come up with and would be happy to take a look.  Your version may be more in depth than mine, or I may have something else that may help you.  But it's always nice to receive feedback on products we make! :)

This is near the same situation I'm in.  I'll be moving to a new town that I don't know much about economy wise yet, but I own a few SFRs and need to expand as soon as I hit the ground. 

@Brandon Hicks I just read through your linked thread and there was a ton of great information there from almost all contributors.  Thanks for linking here and sharing your knowledge over there.  Back to the research lab to prepare for the move!

@Rigo V. good questions as most of mine were the same.  I was anticipating on having to try to find outside investors for the capital because I'll only be sitting on somewhere between $30-40K by the time I'm looking to move forward.  Best of luck in your pursuit of expansion!

@Justin Cory would love to get some insight on your experience with developing?  I'll be moving to Knoxville next year and I haven't seen much in the quad department especially with UT hosting such a large number of students.  I've got a good idea on a quad layout but have no idea where to go beyond that.  Thanks in advance!

@William Allen do you use a distro list?  Moving to Chatt/Knox region soon and would love to get a jump start on picking up a few properties!  Look forward to hearing from you

@Taylor Matthews I'm in the exact same boat right now - 10 year mark and I will be making my departure from the military. My challenge is being OCONUS so networking isn't impossible, but it's challenging. If you plan on separating where you currently reside, try to get into your local REIA and continue networking and building rapport with not only the seasoned "vets" (of REI), but the legal members, the contractors, the financiers, etc. Never know what opportunities may arise in the coming months before you have to make a decision.

Like you, I feel like my current employer is holding me back and not being able to set roots somewhere creates more challenges when you want to invest in markets that you're nowhere near. Moving every 2-4 years is the biggest challenge as well as being OCONUS, so I do understand your challenges.  I'm looking to go commercial myself, so please don't hesitate to connect and bounce ideas.  Best of luck in your future endeavours!

Hey @Abbott Mary, one of my best friends and veteran buddy who is a realtor that's going to help me get back on my feet while I complete my transition to civilian life. I'm not necessarily looking for a specific number of doors as I am looking for ~$5k/mo net income. I'd love the chance to start working with the awesome ladies and fellas of BP to get some hands on with apartments/large multi and/or NNN commercial property. I love aviation, so if I can utilize my real estate to sustain my day-to-day living and fly charters or ferry flights for fun, I'll take that path all day! I read that you're currently house hacking a duplex; that's awesome! What's your next step?

@Nathan Click I'd love to connect and hear about your transition experience.  I'm less than a year out and the anxiety has already start to set in. I was pushing hard to acquire a residential multifamily before I left so I didn't have to couch surf, but without proof of income and a valid reason to move to TN, I wasn't able to make it work.