All Forum Posts by: Jonathan Martinez

@Frank Geiger - No, serious repairs are needed the property was built in 2005 and is completely rented. I actually manage the property. Thanks Frank. I'll make it happen. 

@Tj Hines - Thanks for the tips. I am talking to a good friend of mine. However, what if the seller fronted the note ahead and approached a hard money lender afterwards? 

@Greg Dickerson - Thank you! 

Hello BiggerPocketeers! 

I was in the works of acquiring a second multi family property through a creative way of financing it. First, the seller (relative) would have held the note for 20% for 24 months while I acquired a hard money loan for the rest. The numbers would have worked out that way, I would refinance and payback the note and the hard money loan. However, the hard money investor backed out due to "not having skin in the game". 

Any advice on what happened here? I thought that if I had the 20%, there wouldn't be any issues. 

Thanks in advance!

@David Nacco - Thank you! Will do. Stay tuned!

@Lee Burns - Your welcome! The down payment was 20% and it was financed by cash on hand. Some of the fees involved were title fees ~$3,000. & attorney fees ~$1,000. Some renovations were interior painting and new cabinetry ~ $3,000, aside from the new appliances. I financed it through a loan from a friend.

Investment Info:

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

Purchase price: $149,000
Cash invested: $30,000

Built in 1876. All brick and side by side duplex with 3 bedrooms and 1 bath in each unit, full basement, and spacious backyards

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

Port Jervis, NY is a town that is going through a renaissance with more businesses and developments happening. It is strategically located close to New Jersey and Pennsylvania.

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

My agent found this deal via the MLS and the agent negotiated it down to $149,000 from $179,000.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

I added new appliances to both units and completely renovated one of the units.

What was the outcome?

I currently have one unit rented for $1375 and the other unit is being placed on the market to be rented.

Lessons learned? Challenges?

The process to purchase this property took 9 months to close. After we closed, one tenant refused to pay rent and ended up vacating the unit in June. The other tenant paid rent for April & May and ended up abandoning the unit in June as well. I've learned that people sell problems and it is our duty to figure out solutions to those problems in order to be successful investors. Prepare for the unexpected at all times. It will happen when you least expect it.

Thank you everyone! I have given them plenty of chances. I will have the tenant call the authorities if this issue persists. 

Hello, 

I need some advice on how to best handle an issue. I currently have noise complaints from the first floor unit about the second floor tenants being too noisy. The second floor tenants usually speak loudly. However, they play music and watch TV on high volume throughout the night. I have addressed to them that the first floor tenant is sensitive to noise and sounds travel through the units easily. As well as asked them to be aware of everyone else that is living in the building. They seem to understand when I inform them of the issue until they start again in a few weeks.

What are some suggestions on how to handle this?

Thank you! 

Hi, 

I am jumpstarting my REI journey with trying to attain my first investment property this year. Recently, I made an offer on a duplex that was declined to due cash offers that were on the table. It had me thinking, are there some ways to make your offers standout? Without having to do all cash offers or increase the offer price drastically. I'd love to hear what the community has to say about this about creative offers. Thank you!