All Forum Posts by: John Prucha

Investment Info:

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

Purchase price: $360,000
Cash invested: $100,000

SFH converted to an up/down duplex for STR. Required rehab and furnishing. 50/50 equity with a business partner.

Hi @Brenton Hanes thanks for your reply. I lived in Franktown years ago, beautiful place to live. 
Do you own multifamily there in town?

Hello BP community!

I live in Denver and am passionate about small multifamily investing and climbing. 

It would be great to connect with other like minded people who may be interested in joining me at a local Denver rock gym or climbing spot to get some exercise and talk real estate.

Please reply or send me a direct message if interested. 

Looking forward to connecting!

Climb on, invest on, rock on,

John

It depends on the tenants you expect to attract. If you think your tenants will be hard on your floors, will have dogs etc it may make the most sense to go with durable LVP so you have lower maintenance costs in the long run and the floors stay looking nice, longer. On the other hand, natural hardwood floors are beautiful!

Investment Info:

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

Purchase price: $120,000
Cash invested: $70,000

Duplex in a B class neighborhood.
My business partner and I are flipping units' interiors and doing minor exterior repairs.
This is my first long distance deal! There have been lessons learned and adjustments will be made on the next deal. Once we finish the upstairs rehab we'll BRRRR and pull our money out.

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

The cash flow opportunity

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

Off market through local realtor and wholesaler. Negotiation after inspection.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Interior upgrades

What was the outcome?

Increased rent per unit by $225.

Lessons learned? Challenges?

Find a more affordable contractor.

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

Tal Tamir - realtor and large multifamily investor. Integrous, responsive and thoughtful.

Investment Info:

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

Purchase price: $120,000
Cash invested: $70,000

Up-down duplex in a B class neighborhood.
My business partner and I are flipping units' interiors and doing minor exterior repairs.
This is my first long distance deal and the team has been reasonably good for the first deal but I need to make an upgrade in the contractor department. Ours is good, but too expensive. The property manager also seems to spend a lot of money on maintenance. We have had conversations with him and will be switching PMs if persists. Once we finish the upstairs rehab we'll BRRRR and pull our money out. Based on the property ARV we should be able to recoup all rehab money.

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

The cash flow opportunity

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

Off market through local realtor and wholesaler. Negotiation after inspection.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Interior upgrades

What was the outcome?

Increased rent per unit by $225.

Lessons learned? Challenges?

Find a more affordable contractor.

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

Tal Tamir - realtor and large multifamily investor. Integrous, responsive and thoughtful.

If you are able to use conventional loans, and buy right, you can acquire more properties and generate more cash flow than buying them outright. 

Hiring a GC to manage subs on a big rehab is a GREAT idea, particularly if you have a full time job.

@Carlos Pelegrina I completely get that. It's a perpetual challenge until you can lock in the right guy/gal.

@Jacob Repreza that seems like a good alternative approach. In the end, better to take longer and have it done right the first time. 

Completely understand. 

If anything changes, please loop back around!