All Forum Posts by: Jessica Kirkpatrick

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $600,000
Cash invested: $80,000

10 unit purchase. Offer accepted out of 5-7 other others, several of which were cash. Mine was financed, but I had credible lender and good rapport with listing agent. Also, waived any seller repair requests and purchased sight unseen. Analyzed deal and big up to $50K over list price.

Cap went from 8.39 -> 13.08, GRM went from 7.43 -> 5.75, expenses decreased 15%, income increased 24%, debt income went from 1.17 -> 1.82.

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

Location, character, potential

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

MLS

How did you finance this deal?

Blanket loan

How did you add value to the deal?

I overhauled entire building right under a year. Major changes included, 6 apt rehabs (1 complete gut), foundation repair, serviced all 5 HVAC systems, plumbing, exterior paint job, new lighting throughout, wifi cameras and thermostats! Brough expenses down and raised rents to make up for utilities incl in rents.

What was the outcome?

Great!

Lessons learned? Challenges?

Kick out bad apples sooner rather than later. Don't back down to contractors and be too nice.

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

Im a Realtor and I worked with a commercial broker who I'd use again.

Hello, I have a prospect tenant who isn't from the states and seems like a great candidate, but I'd like to do my due diligence and do a standard application which included a credit and background check. Most websites are set up for domestic only bc you need a social. What are alternative options for this scenario? TIA!

Hello all,

I have a 10-unit that is approx. 6,300 sq ft. In the current situation, it would be more profitable to provide internet. Rents are below market rate and they need to increase, but I can tell tenants are pretty stretched as-is. Most pay a pretty penny for internet. My thought is that I could provide internet, save them some money, and I could raise rents easier. Not many work from home, so if internet happened to go out periodically.. it wouldn't be the end of the world; but I'd still like to have reliable connection - I have cameras and wifi thermostats. 

I currently have 500 mpbs and a Eero 6 mesh. It isn't picking up the extender in the back of the building. I'm thinking the system is too small, which it does say it is for only 4,500 sq ft, but I got a "prime" deal... so had to give it a try.

Has anyone else done what I'm trying to do? If yes, what setups/ systems do you have?

TIA

Investment Info:

Single-family residence fix & flip investment in Cincinnati.

Purchase price: $170,800
Cash invested: $112,000
Sale price: $360,000

Hello Remodeled Craftsman Bungalow Home! Updated with finer finishings & quality craftsmanship while preserving original characteristics. This home has 3 beds, 2 full baths, 1-car detached garage, & a .25 acre lot. Front porch or backyard make for great entertainment. Location is central to everything that makes Wyoming, including some of the best schools in the state. This is a move-in ready home - new roof, HVAC, and rewired.

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

Always wanted to do a flip. Wasn't looking but one dreary Saturday afternoon this house flew across my radar. I love the look and character of the house and the fact it was a complete gut job, since this would be my first flip. Also, the location was A+ and some of the best schools in the state.

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

MLS. I'm an agent, so I was able to keep my commission. It was presented as a single family opportunity over a flip opportunity and they didn't have as much interest as they thought and many thought there was too much work. Plus, I waived the inspection.

How did you finance this deal?

HELOC and personal loan.

How did you add value to the deal?

New roof, rewired house, new HVAC, added 1 full bath, increased square footage of 3rd and gave independent entry.

What was the outcome?

$25K over list price, 6 offers, cash off, close in 3 wks.

Lessons learned? Challenges?

Check wiring ahead of time, budget in handyman items toward the end, and have everything completed before going under contract, so new buyer can't get in the way of getting the job done and/ question the integrity of the work. For example, I scheduled the main water line to be replaced after it went under contract and put in agent notes that was to be completed. The new buyer questions the integrity of the work and threatened to break the deal.

@Jasmine Delves Mainly collecting rent seamlessly with minimal fees for both landlord and tenant. Im good with tracking expenses.

I know this question gets asked often, but I feel like technology is ever-changing and worth asking again every couple of years!

Which property management software do you like? Looking for 20ish unit usage. 

I like the following features: low annual fee/ free (haha), automatic rent withdrawal/ schedule capability, low fees for tenants, tenant insurance options, background checks, tenant option to report to credit bureau, repair requests, etc.

TIA!

I’m an agent and was approached to list a house purchased by someone that does the above. I asked for proof of ownership since it still shows in banks name. They provided contract and copy of wire transfer and said the bank would send them the deed in 3 wks. I asked for alt statement or an individual who facilitated transfer of ownership and they weren’t able to provide these two things and said their business dealings are unordinary and this is how it works.

Is this correct?

Come to cincinnati. How a portfolio for sale here with a couple luxury apartments that you could live in one and watch your money grow. Definitely leveraging your money as best as possible vs paying cash is the way to go.

that is very interesting and your points have been some of my findings as well. i should probably add some more STR verbiage into the descriptions. if you ever want to come to cincy, let me know! LOL. the fees can get very ridiculous and good pointers on maintenance. yeah, if you're spending mega bukus.. nobody wants to be mowing the lawn!

Thanks all. Yes i receive longer requests most time through airbnb and propose to work "off-line" and do a more thorough background check if i see fit and rental agreement, but i need to rework the agreement to be more specific for the "longer short-term" needs. Thank you for the web-sites.. i will definitely check them out. I'd like to expand my reach, bc these longer short-term rentals are more lucrative and less work. :) Very helpful!

It's great to hear what others have done, bc it's very similar to what i have done and/ found too.