All Forum Posts by: Jack Thornton

I would tell them that you will have the leak looked in to, and based on the results of your expert will proceed with necessary repairs.  You have no intention of doing any cosmetic work at this time however.

Keep it short, simple and unambiguous.

As others have said, the rental was not contingent upon any upgrades being performed.  That hasn't changed.

Thanks Eddy.  It was good to talk with you today.

Hi.  I have some cash that I am looking to use to get into multi-family investing.  After looking at my situation, and where I want to be in a few years, I am ready to take the plunge in one of two different ways.

Option 1: Join with an experienced investor as a junior partner in an apartment deal.  I would expect to not only invest my money, but also to take on some level of responsibility so I can learn the business.

Option 2: Find a smaller deal (6-16 units) and a property management company [individual] who is willing to tell me when (and why) my understanding is wrong; and is flexible enough to work with me as I get my systems in place to be able to grow as I get the experience.

For either one, I am interested in primarily B-class properties (not adverse to students either). If it is on my own, I am not ready for a major overhaul, but would be willing if as a junior partner. The plan is definitely BRRRR and not flip or short term stabilization. Boise is preferred, but anywhere in the Treasure Valley is potential.

Any connections would be appreciated as I know the shortest way to a deal is with good people.

Thanks. 

It sounds like it is going to come down to who does the appraisal.  As @Mark Ainley indicated, it looks like that is not an issue generally - though there will be some additional hoops for you to jump through if the appraisal comes back negative.

The only question is what happens if it got labeled as 1 + den and your efforts fail to get it changed.  Would you can be satisfied with in this situation?  If not, and the risk of it does seem non-negligible - though not huge, go with the reverse design.

It sounds like you understand the trade-offs correctly.  What is your risk tolerance?

If you are able to make some exterior changes to the unit, could you alter that closet and the rear entry so it enters into the kitchen instead of the bedroom?  I am thinking of turning the closet 90 degrees, or shortening it far enough to put a door to the kitchen, then getting creative to find/create additional storage space (if needed) for the bedroom.

Having the public area to the front looks better to me than the reverse layout.

What did they do when you approached them about signing the lease?  Either as an additional Lessee (if the prior Lessee's contract is still in place and being paid on) or as a new contract (if it is month-to-month/expired)?

How long has it been?  If they have been paying the rent and have been there more than a certain amount of time, they may be protected as tenants by law.

Thanks for the welcome everybody.  

@Kyle Vandever I would definitely consider duplexes, though 4-plexes/small apartments have more initial appeal to me (less impact of a single vacancy on cashflow and fewer locations for the same number of units).  It really depends on the numbers however.

@Nathan Carter looking at your blog now.

@Trevor Ewen thanks for the recommendation to look at the other Jack for information as well.

I am.  I have a bit of education to get first, but I definitely want to keep it local - probably in Boise proper for the first one even.

Greetings.

I am a technology consultant who is interested in building an alternate income.  Not sure what site it was that mentioned BP first, but it was a quick search that brought me here.

My goals are modest to start - I would like to get into a small, local multi-family property (4-12 units).  Once my education period with that is over (and enough equity has built up in it), I would look to start growing.  I would have no problem partnering with an experienced investor.

I wound up in Idaho after college after moving around quite a bit growing up (parents are ex-military, but that was before I was born).  I've been to all 50 states and 12 countries (on 3 continents), and expect to continue to travel regularly.  My primary hobby is being a Boy Scout leader.