All Forum Posts by: Jack Ropp

@Erica Allen investing in East GR is tough with the non-owner occupied property tax basically kills all cash flow. Alger Heights and Ketwood have the potential for sure! 

Let me know what you are looking for and how I can help. I mentioned it in my last post but if you would like to swing by the local meetup I started for newer investors just connect with me man!

@Sarat K. I have a few clients as well that only like to invest in good school districts. @Charles Kao is a wealth of information and what he is saying is correct. It is also very scarce out there to find deals that have enough meat on the bone to cash flow right now. 

It just depends on what your end goals are long term appreciation, cash flow, how quickly you are looking to scale, etc.

There are other profitable areas in Grand Rapids but the city rental requirements are getting more strict just have to be aware of these. 

I have a local meetup for newer investors if you would like to swing out to one just connect with me would love to have you. 

Yeah it was just a pretty funny situation all around. I do like the "Unauthorized Occupant" notice thats not bad. 

Haha alright, tenant says he has to talk to me about a reading he had done on the place. I was unsure what "a reading" was? He informed me that a lady came out to do a reading and found out the place is haunted... bad. Spirit in the bottom unit in the form of an older man and a child in the top unit, and thought I needed to let the tenant in the bottom know.

I am a pretty open-minded guy but I found it somewhat funny. I tried to explain that their business model wouldn't work very well if they told their customers that the place is ghost free - tough to sell the follow up full cleanse on non-haunted places. They are great tenants and good-hearted people so not complaining or anything just wondering if anyone else has had this happen lol. 

House hack, house hack, house hack. Literally, the best way to get started, and learn @Axelson John. https://www.biggerpockets.com/blog/house-hackingfactors/

There are tons of articles on house hacking read the forums and educate yourself before you make any moves. Reach out to anyone, BP community is awesome - go meet with a local investor and ask questions. If you have any questions you can always call me as well. 

Hey @Michael Copeland welcome to BP great to identify your goals. I have recently begun investing and have similar goals. If you ever have any questions, ideas or thoughts please feel free to reach out. 

@Ryan Kuja Oh I gotcha. Really are you flipping the Fuller and Fulton property or are you going to Re-fi and rent out? My goal by the end of the year is to flip a property but if the margins aren't there I have the ability to just rent it out. 

I am looking for SF properties as close to downtown GR as I can get. 

I own a duplex in the Lansing area. The Lansing area is interesting with the additions to Sparrow hospital and the development with the downtown area marketing it as the new "Stadium District". 

I want to continue investing in Lansing but I am also looking at the GR, Holland, Grand Haven, Muskegon areas. I personally just like the west side of the state better and have a relative who is a broker that has been investing on the west side for over 20 years and am beginning to work with him more and more.

My relative is a Broker in Sagautuck and has been investing in the Sagautuck/Holland/GR area for 20 plus years. He's my mentor and is extremely knowledgeable. SF and MF rentals, commercial retail, storage units, flips, built a property management company up to 600 doors and sold it etc. I have recently begun working with him quite a bit as he ventures into more commercial.

The Lansing area is interesting with the new addition to the hospital, and all of the development plans breaking ground this spring downtown, marketing it as the "Stadium District". I currently own a duplex Lansing but I just moved out to GR and will begin working more and more with my relative and investing on the west side is my goal. 

@Ryan Kuja on those deals that you didn't BRRRR did you end up just flipping them?

@Pete M. - how long have you been investing out of state, and have you had any problems with property management companies in OKC?

*If you need any help or want me to shoot some properties your way that fit your criteria please let me know. 

Investment Info:

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

Purchase price: $86,000
Cash invested: $6,000

Up and down duplex - 2/1 & 2/1 - 1800 sq ft.
$700 Top $800 Bottom - $1,500 Gross Profit

$767 PITI
$250 Utilites
10% Capex (1,500 x .10) = $150
7% Vacancy (1,500 x .07)= $105
Total = $1,272

$1,500 - $1,272 = $228 cash flow.

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

The surrounding area and BRRRR strategy.

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

MLS negotiated down 6K.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

Sweat equity convincing friends to come help do general repairs and landscaping.

What was the outcome?

Still, own the property.

Lessons learned? Challenges?

These were the numbers I ran before purchasing the property. Slim margins with the plan to slowly increase rent as I am below the market average in my specific area.

I want to continue to invest with my next goal to partner with someone and purchase a small commercial property. Ideally something between 5 - 24 units.

Really get your numbers straight and have a solid plan going in.

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

Yes, I work with a realtor.