All Forum Posts by: Jared Johnson

Hello BP,

Im finally refinancing my first rental property! :) (Triplex) and pulling equity using a HELOC, to be ready for my next deal in the Spokane WA market.

Has anyone done one recently with success and good terms? (Not necessarily in Spokane)

Also has anyone had one canceled or frozen recently because the lender you chose is nervous of how the market is moving? 

Just curious if anything is happening out there on this front, in this COVID-19 universe.

Thanks guys!

@Joseph Firmin

Thank you! That’s a great point. Not to much and not to little for them to look at. Appreciate the feed back

@Jaz McWilson

What I did to get my first triplex was to do an FHA loan. 3.5% down will get you in. Having a good chunk of change like 35k would be good reserves for you and money for upgrades. When I bought mine I only had $23,500 in the bank.

Then I forced a lot of appreciation ( A lot of upgrades and good maintenance) it also appreciated over a few years. I’m in the process of refinancing and pulling equity to shop again. (Home equity line of credit to pull the equity)

I think FHA is more lenient on the credit as well. But I agree with the others. Gotta clean that up and keep it clean. I wish you good luck!

If you have any questions feel free to pm me or reply to this. I’d be happy to help you out.

Hello BP this is my first post in the forums. I have a question for any appraisers and the investors on the other side of the appraisal who have experience with this.

What should you present to the appraiser information wise without making it seem like you know better than they do or you are giving them a "task" or a "job".

-Pictures of major upgrades? like roof, gut rehabs, exterior landscaping/paint jobs? 

-Cashflow charts of the before and after rehab? (using the BP tools of course!)

-Actual printed pictures or a thumb drive? of upgrades

-Comps of recent sales

Should I do anymore or any less??

Any responses would be greatly appreciated. Thanks!

For whatever reason the report is stuck and saying the "purchase" portion isn't filled out, and won't let me complete the analysis. weird because I have every bar and fill in spot, all filled in. I just upgraded to pro today for the reason of using the calculator and it isn't working..

Hello Emily,

To keep things short I have been through this in a smaller way. My situation was a year and a half of dating my now ex- girlfriend, she was and still is a great person but, she got in the way of my career in REI. If I had to spend more time than I said to her as an estimate, working on my business she took it as I didn't want to be with her and spend time with her.

Constant texts wondering where I am meanwhile she knows I’m working on my property (among more issues, this is the most noteable). Because I’m so new I need to crush it and keep hustling, so things keep moving forward.

It felt like she was holding my shirt while I was trying to run through mud. Some people just don’t understand what it takes, even if you try to explain it to them.

In my situation I had to cut the ties and move on to keep going where I want to go and achieve my goals set. In your situation I totally understand your conundrum, I hope everything works out for you for the best!!! Good luck

- Jared

Investment Info:

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

Purchase price: $159,800
Cash invested: $25,000

Triplex rental property located in Spokane WA. It has 2- 1 bed 1 bath apartments and a 2 bed 1 bath apartment with a private backyard and deck for the 2 bed unit. One of the units had been renovated before I purchased it and I had to totally gut and rehab two of the other units. They were a MESS!! but I learned a TON from it. wouldn't have done anything different. Put a new roof and a seamless gutter on it as well as overhauled the landscaping.

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

The thing that made me interested in this type of deal was the fact I do not want to work forever, I want passive income. I have always loved buildings and real estate ever since I can remember. before I thought to even do a deal I had been working my 9-5 job and saving every penny I could and had between 20k and 30k and decided it was time for me to jump. I am really happy that I decided to take that dive!!!

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

I found it through my real estate broker, she specializes in multifamily/real estate investments. Also, because I was such a noobie and paralyzed with fear when the deal became real, I totally relied on her to do pretty much everything for me. After that, the wall of the learning curve came, Renovations, property management, budgeting, Tenant issues, learning what escrow and equity were etc. This all came at me very hard.

How did you finance this deal?

I financed the deal with a FHA loan and HOUSE HACKED!! I love this strategy.

How did you add value to the deal?

I renovated 2 out of the 3 units (can add pictures if wanted), put a new roof on, new gutter, and made the landscaping WAYYYYYY better (weeds taller than me when I bought it, and I'm 6')

What was the outcome?

As of now I still own the property and I raised all the rents 63% and the property cash flows me $978 every month, it is valued between $265,000 and $299,000.

Lessons learned? Challenges?

To keep things short. I learned A LOT!! these past 2 years. How to screen prospective tenants, tenant issues and remedies, property management, renovations and costs associated with it, being my own handy man/ head of construction, keeping emotions out of the deal and day to day challenges, delegating, cashflow, cap rates, GRMs etc ( probably a lot I am missing from that list as well)

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

yes, my agent Melissa Daily in Spokane WA is awesome.