All Forum Posts by: Hyacinth Dolor

How I made $200k after mortgage payments in less than 10 years on a single property and still own it but want more  

I bought a 3 family unit in 2009 for $159k with only 3.5% down. $159k -$5650=$153,435+ closing cost $10k + Reno $7,000= $168,435 all in. Total monthly rental income $2,900 - $1790 mortgage =$1,100-$350 water/sewer/Reserves= $750 net monthly income x 12= $9,000 yearly x 10= $90,000.

Now you’re asking how did I get to $200,000. Here’s what I did on the last month on the 10th year. I sold the property to my wife and gifted her 20% equity. House was appraised for $320k-$139,000 mortgage balance= $181k- $64,000 gift of equity= $117k - $6000 closing cost= $111k+ $90k from rental income=$201k. Guest what I’m doing today? Same thing over and over on multiple properties. Yes I have houses in the Caribbean and not 50 yet. I have a 2 year old and a stay home dad very handy horrible in math with a couple licenses. How can I make more on these rentals. Im currently purchasing a couple singles with $500+ monthly cash flow. 

Investment Info:

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

Purchase price: $159,000
Cash invested: $15,000
Sale price: $245,000

I bought during housing crash in 2009. Sold to wife 10/2018 and gifted her 10% equity to sweeten deal for the bank. Now waiting next deal with 1031 option. So profit was $100k from rents plus $82k at closing. Today I still own the same property with $600 monthly cash flow.

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

B class neighborhood. Buying it for 1/2 the previous owner bought and great cash flow.

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

I stalked it and offered to manage it for free prior to purchasing it.

How did you finance this deal?

FHA

How did you add value to the deal?

Very efficient Reno. Used appliances and fixtures. DIY on Nights and weekends.

What was the outcome?

Needed cash to reinvest but with my little income due to stay home dad and investment income out of country banks would not refinance me. I decided to sell to my heavy income wife at market value a had our attorney structure deal to avoid taxes legally.

Lessons learned? Challenges?

Consult with every professional (not friends), neighbors and make the right decision based on facts not aspirations. “Not friends” only meant for friends who do not know your talent, determination and facts about the deal.

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

Yes realtor and Wells Fargo. Then got my real estate license because I noticed my realtor had deals she wasn’t showing me. The best $2k ever spent.

Hi,

My wife is currently in a similar situation. Her brother wants her to assume his $130k 3 family. Total income $3k. Total mortgage utilities and maintenance $2000. The property is appraised at $275k. After being approved for loan assumption she now wants to pull $80k out to do upgrades and other stuff. She is now considering having him sell her house at market price and he gifts her all the profits. What do you think is her best option?  I’m sure there are many others. 

You don't have to do crazy things like me but get innovative, give incentives. This is the area you are investing in and these little things work for me and I have the best tenants cause I try to be the best landlord. I also give tenants cash awards at the end of the year for paying rent on time. I hope your tenants stay 13 years like mine. 

Sounds very Good. I have one 3 family there too. Right off Charles st. Look for a Cobolt GMC Sierra. Do the best you can to screen thoroughly and make it personal as you get started. If you get desperate to rent without doing the screening it will come back to bite you. Also, you "may" go through this, I have not, but when you get a non paying tenant do not go through the eviction process. Eviction may cost you at least 6 months rent. I know it sounds crazy but it works way better. You should personally offer them at least $1,000 to move out but don't give that money until you get the keys. I think the reason I'm successful at doing this and not have the horror stories my colleagues have is I see things just like my tenants. I was extremely poor not too long ago but no one knows I do not have mortgage. Another one of my traits is to pick up rent after the 5th and yes I said it, "pick up". Very old school, time consuming but extremely personal. I have great communication with my tenants and nothing passes a week before I repair. There is a lot to learn in this business but if you like it you become successful.

Two things matter the most in Bpt. 1 who's managing the property. Most management guys company will see you as an investor and not treat tenants properly. Time has changed and tenants have plenty of access to other places so they move very often. 2. Where the property is located. I've owned and managed in BPt for 12 years and never missed rent and accumulated less than $3000 total in vacancy in the past 12 years. Make sure you do your homework and buy right. $275k is a lot to start with in Bpt. Good luck

1k after mortgage, taxes and insurance. 

Hi Tatiana,

Bridgeport is great to me but beware of the taxes. I'd stay away from Bridgeport if investing more than $200k. I purchase 3 fam 150k or under so I have $1k minimum cash flow. Do you research on entire area. Look more to the north end, black rock  or north (Beardsley park area). I have properties in all corners of Bridgeport cause I'm familiar and do all my own work. Good luck and beware of realtor rush. Take your time to tripple check the numbers. 

Hi Garrett, 

North Bridgeport works out well if you find a 3 fam. I have one I may be selling this spring but wife says our $1000 monthly cash flow is good enough to keep. I also have on east side great 6 and 13yrs tenants with good cash flow. I'd says tenants move due to bad landlords or better schools in the north. I like the fact that you are doing your research on crime in area. Keep in mind some of the most dangerous crime in bridgeport happens in or near the projects in the north end too. So whatever realtor you get remember they are mostly looking for that commission and 10% hoping you'd call them back to list or lease. I'm a part time realtor (I work with families, friends and long term business partners). Take your time and do every research you can. FYI Whenever I'm investing more than $200k I flip out of Bpt due to lower taxes and better return. Good luck. 

Thank you. You are right. I would need 6 months to get a loan after closing. What I will do is to get a conventional loan to purchase the 3 family from my brother. My single is free and clear (paying taxes tomorrow) I have $800 in all my debt so credit is perfect. To get the $100k to flip I will figure the single family HELOC would do and the income from 3 family should cover most loans.

Thank you for your prompt response. I will make a donate to a go fund me on your behalf this week.