All Forum Posts by: Joel Florek

@Jeremy S. Good luck! My personal preference is to get properties that were designed as multi family rather then a house that was awkwardly cut up. On the outside this means parking should be accessible for all tenants, and the utilities are set up in a way to pass on to the tenants, or easily work on. I dont want to see a pipe break cause me to rip apart all units. In my building all my water lines are in one general area so 80% of my building doesn't have water lines running through it. I have dealt with frozen pipes before and other headaches so having things in one logical space was very important for me buying this property. I am also not terribly comfortable with basement apartments. My family has had flooding in the past both sewage and through the foundation. This caused us to rip apart walls and rebuild things that were damaged due to a minor problem. When my sewer exploded at my property all that needed to happen was wash the floors down, soak them in bleach and fix the pipe. No other expenses. Not saying you cant do basement apartments, but I am less comfortable with them right out of the gate.

@Joel W. I thank them every day! I have always been side by side with them learning and willing to put in the time when the rest of my friends were at the beach or playing video games. Usually they are the ones making me quit working because its 11pm on a Friday night and they are trying to watch a movie. 

Just keep them involved in the work as best as you can. My brother is now getting into real estate investing, he is 3 years older. He was never as involved in the renovations though until he bought his first property. He is learning now! We have always tried to make it fun and a team effort as best as possible. 

Thanks for the encouragement!

@Derek Carroll

The 20% is a personal note. Looking back I should have pushed for the construction costs to be incorporated, but given this is my first property the bank was cautious to hear about too big of plans. I also knew that with my job and lifestyle I would have no problem paying the construction costs out of pocket so I was not concerned about not having the funds to do the work. Estimated costs for renovations are between $10k and $15k for two of the units and some building upgrades over the first 6 months of owning the property. 

@Shirley Gregory

Thank you! 

@Pavel Sakurets

Thanks for the suggestions. I will definitely be doing my shopping around when I go to refinance. 

On the tile comments, what type of tile was typically breaking? I have done a lot of tile jobs over the years and will only use porcelain tiles for floors. Ceramic breaks very easily and we have seen this happen, but we have never ran into issues with well laid porcelain. I also only use tiles if the floors are rock solid. If there is any indication of movement I will use another option. 

@Mario Mormile

Thanks and good luck with the duplex! Be careful what you spend your money on but be sure to do the important things right! 

@Gloria Almendares

Thanks for the comments. Ill have to look at those floors when I renovate my unit on the bottom floor. Sounds like it would be a great option for me. 

I am certainly thankful for lower property values around here! My hometown in Marquette Michigan is about 2x what the values are in Iron Mountain where I purchased this. Picking my job in Iron Mountain was part of strategy though. I knew I would need to wait a bit longer before getting into the game if I were in a bigger city or more expensive area. Being close to home and in a cheeper market allowed me to take my first step right out of school. 

@Leon L. Thanks! Good luck on the property! Hope all goes well. Im headed into the winter months so my heating bills will start to hit which I am not looking forward to so I am hoping the boiler will make it through the winter. I did have a heating tech come and inspect it before I purchased to be sure that wasn't a major concern. 

@Armond Batiste Working with the bank in any type of commercial real estate loan they typically want to see you bring 20% to the table. Sometimes more may be required. I raised the 20% I brought to the table and pay 8% on that money. When my property is fully occupied and I renovate another unit I will look to refinance with the bank to a lower rate and to pull my 20% back out if possible. 

@Johnny Rodriguez

For a long time my mom was the one who was able to help pay for a larger portion of the renovations due to her being an RN. She also happens to be the one with an itch to move every year or 2 years. 

My goal is to build up income from properties like this to where I can count on $1500 a month for my personal expenses. Then I can commit to doing flips and taking on larger projects on a full time basis.