All Forum Posts by: Jacob Allweil

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $259,000
Cash invested: $65,000

Found a 7 unit where the leases were very old and most rents hadn't been increased in years. Originally it was pulling in 3100 in gross rents per month but I thought they could be closer to 3800. A year later and some reshuffling and we're now getting 4100 per month in gross rents.

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

Wanted more cashflow because I knew my wife wouldn't be working for awhile.

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

My realtor from a 2018 deal led me to this landlord who hadn't posted the property yet.

How did you finance this deal?

Traditional financing.

How did you add value to the deal?

Reshuffled some of the tenants around to optimize the rents we were getting.

What was the outcome?

It took about a full year to stabilize but we increased the gross rents from 3100 to 4100 per month.

Lessons learned? Challenges?

Before doing something like this, where you'll definitely be reshuffling tenants and having some vacancies, maybe do a more in depth look into the property manager's capacity to take on new units. My property manager, while he said it would be no problem, ended up feeling really cramped for time and I had to pull this 7 unit and give it to a property manager with more capacity.

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

Carrie Dahn in the tri city area has been great to me:)

I'm curious if anyone has experience splitting water in an apartment complex.  I'm looking to get an 11 unit and currently the utilities run about 25k per year.  I'm wondering how much it might be to split the water and pass that along to the tenant.  It is an old building so I'm guessing it'll be more than normal, and may want to get a plumber's consultation, but curious to hear people's thoughts if they've gone through this process, and possible hurdles they had or things they wish they would have known.

Best, 
Jack 

Hi all, 

First off I'd like to say if you aren't too familiar with real estate investing and the associated taxes I'd recommend the BP book by Amanda Han and Matthew MacFarland, The Book on Tax Strategies for the Savvy Real Estate Investor.  

My tax preparer last year, my first year with S Corp rental income, basically just prepared my taxes but didn't really provide ideas and ways to get further deductions.  The more I've learned the more I realize I missed out on some things and that has me looking for a good helper/idea person to help me keep more in taxes.

Ideally I'd like the advisor to be in the central or eastern time zone.  Any recommendations would be appreciated.  

Best, 

Jack 

Hi Rob, 

I was just wondering if your folks got a new PM.  I'm doing a road trip from Charlotte down to Florida and plan on stopping in a few areas to take a look for potential rentals.  Brunswick caught my eye while I was browsing around Zillow and would love to talk to someone who has some exposure to the area.  If there's anything I can check up on for you let me know.  We should be hitting Brunswick like January 2nd or 3rd.  

Best, 
Jack 

Of my 8 leases I've collected ~93% of the monthly dollar amount.  I've been pretty happy with this but we'll see what May brings.  

I was just curious what people were seeing from their rentals.  Have many of your renters expressed future difficulties in paying rents?  And for those were looking for renters to fill spots how much harder were they to fill, if able at all?

Thanks, 
Jack 

@Ashley Massis Class and @Tracey Callison, Sorry I haven't been on here in awhile.  I grew up just north of Bay City, on Lake Huron, and now have rentals in Saginaw, Bay City, and Bridgeport.  I've now owned them about a year and have had a good experience with my property manager.  I just went through my first eviction last month with my Saginaw property.  We now have it ready to rent out again.  

The city of Saginaw seems to be relatively tough to deal with compared to Bay City and Bridgeport; I've had zero problems with dealing with the employees at the city buildings in Bay City and Bridgeport.  However in Saginaw I've had problems.  For example they have an annual landlord fee, think it was $50, but I didn't know about it until after it was due when I got a letter saying I had a court date.  I called them and did get it taken care of but the employees really seem like they don't care and they try to get you on all sorts of fines/fees.  

I got all three of these from a couple going through a divorce.  I got them for 60k but they're valued at roughly 120k.  When they're fully rented they bring in about 2150/month in rent.  The Bridgeport place is three units that I do pay roughly $120/month in water.  I did have these properties seller financed and still owe about 46k.  My monthly payment is roughly $550 for principal and interest (5.84% over 10 years).  

I lived in Ann Arbor for about six years and love it deeply.  It's a bit pricey to get into but with the school there I'd imagine it's a pretty safe spot.

I always love chatting and if you'd like to know more I'd love to share. 

The two single families were rented out and two of the three units in Bridgeport were rented out.  We're still looking at filling one unit in Bridgeport.  I think the rents were appropriate for their current states; I'm looking into putting some money into the Bridgeport house to rent out the vacant unit quicker and slowly increase the rents of the other two.  

The transition was very smooth.  The only involvement I've really had thus far has been contacting the utility companies to let them know I've taken them over.  Some of the possible repairs for the Bridgeport house do have me it stressed (I don't want it to seem like this deal was absolutely all cherry).  

Investment Info:

Single-family residence private money loan investment.

Purchase price: $60,000
Cash invested: $1,000

I started cold calling property managers and found a couple going through a divorce, based out of WA, that had three properties in MI (2 SF and 1 three unit) that the property manager was managing. The couple needed to liquidate. I got the sellers to seller finance 40 of the 60k over 10 years at 5.8%. Most of the down payment I raised from my brother and a friend that I'm also paying back at 5.8%.

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

I wanted to find a price that was below the intrinsic value. I wanted steady cashflow in Michigan.

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

Cold calling property managers to see if any of their clients were looking to sell. I feel like I negotiated the price down even more when I said I didn't even need to go inside before I made an offer.

How did you finance this deal?

seller financing

How did you add value to the deal?

Got them cash and closed quick

What was the outcome?

I have three properties that are cash flowing and still managed by the manager that linked me up with the deal

Lessons learned? Challenges?

It's been a new challenge communicating to the property manager while I'm in a different state. I'm learning I have to be very clear in what I want done and how I want to go about things.
Also as part of a package deal they split the 60k sale price equally amongst the three properties where as now I'd have preferred they prorate them based off an estimate. This is because it's now more of a tax burden if I thought I wanted to sell the most "expensive" one.

Investment Info:

Single-family residence private money loan investment.

Purchase price: $60,000
Cash invested: $1,000

I started cold calling property managers and found a couple going through a divorce, based out of WA, that had three properties in MI (2 SF and 1 three unit) that the property manager was managing. The couple needed cash fast. I was having a tough time getting traditional financing and asked the couple to finance the deal which they agreed to. Their condition though was for me to get them 20k in cash. I am paying them interest at 5.8% over 10 years. For the down payment I raised the 20k mostly from a friend and my brother so I could have a reserve in place that I felt comfortable with. Four of the five units are currently rented and we're seeking out a tenant to fill that open spot.

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

I wanted to find a price that was below the intrinsic value. I wanted steady cashflow in Michigan.

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

Cold calling property managers to see if any of their clients were looking to sell. I feel like I negotiated the price down even more when I said I didn't even need to go inside before I made an offer.

How did you finance this deal?

seller financing

How did you add value to the deal?

Got them cash and closed quick

What was the outcome?

I have three properties that are cash flowing and still managed by the manager that linked me up with the deal

Lessons learned? Challenges?

It's been a new challenge communicating to the property manager while I'm in a different state. I'm learning I have to be very clear in what I want done and how I want to go about things.
Also as part of a package deal they split the 60k sale price equally amongst the three properties where as now I'd have preferred they prorate them based off an estimate. This is because it's now more of a tax burden if I thought I wanted to sell the most "expensive" one.