All Forum Posts by: Kellie Holly-Wood

I'm purchasing a MF property with a co-worker. We have a 50-50 split, but the title company is asking whether we want co-ownership interest as joint tenancy or tenancy in common. Which one is better and why?

I've noticed that ALOT of people on BP have talked about finding a mentor, in order to be successful. I live in a small remote town. There is no REI club here. How do I go about finding a mentor and how do I know him/her is teaching me the right stuff?

Mike H. I used to sell paint and the general rule of thumb is flat is for ceilings, eggshell is for walls, satin is for the bathroom and semi-gloss is for trim.

Thank you! @Jon Klaus 

The units are 1bd/1ba.  Purchase price of $80,000 with 10% down at 7% interest.  Two of the units are currently rented at $450 and $550.  I will be renovating the other two units  and will be renting them for $550..

The deal was brought to me by a real estate agent. She knew that I was interested in finding an owner financed multi-family property.  

What type of interest rate is the owner giving you? You want to find out what your annual net operating income is. To do this take the number of units x monthly rent x 12. So if you have 17 units at $500 x 12 months would equal $102,000. Now you need to subtract your annual expenses. A good rule of thumb is 50% of your income. In this case it would be $51,000. Now, let's say you are getting a 7% interest rate from the owner on a 30 year loan, your monthly payment would be $2661 or $31,932. So, your net income after debt service would be $19,000. Your cap rate would be 3.8%. That's your net income divided by the purchase price. But that is all hypothetical on your interest rate. If he's asking $500,000 try offering a lower price to increase your cap rate. Find out why he wants to sell the property. T And although they are 100% occupied now, make sure to account for vacancy. Probably between 5-10%. I hope this helps a little....

Aaron Mazzrillo It is in Blythe.... And you have a good point about a lot of the people that live here. Blythe is missing a lot of things, but one of those things is quality apartment rentals. Everything here is outdated! That was my purpose of buying here, besides being where I live. I am glad to hear you think it's not too ambitious, but I will double check my numbers to make sure I'm not being unrealistic. Thanks!

Hi Bigger Pockets! My name is Kellie Holly-Wood. Yes, I know the name is awesome! The story behind it is even better. I currently work as a Border Patrol Agent in Blythe, California. Blythe is a remote, rural city in southeastern California. The nice thing about Blythe is that it is centrally located to many big cities, including Phoenix, Las Vegas, Palm Springs, Los Angeles, San Diego, Yuma and Lake Havasu. I also own a dance studio with my wife in town. Although I help her at the studio, she mostly runs it. Before this job, I worked in a family owned carpet store. I am very familiar with working with spec builders. I would spec, quote and subcontract installers for tile, counters, carpet and other finishing touches. I have also owned two primary residence, but never done anything else in real estate, until now. I am currently in escrow on an owner financed 4-unit property that needs major rehab and I plan on fixing and holding as rentals. I really want to do something in life that I enjoy and that doesn't feel like work. That's why I decided to start my dream of a real estate business and financial freedom!

I want to get serious about creating a real estate business of buying and holding, specifically apartment complexes. I have a moderate knowledge of the real estate world, but have never been a landlord. I have one 4 unit complex in escrow, but also have the opportunity to do a 25 unit complex. I want to know if I'm being too ambitious. With little experience as a landlord/ manager should I work up to it a little more?