All Forum Posts by: Jose Miller

I'm pretty tapped into the MF community in Phoenix. I host my own MF meetup (in-person) through the local REIA and can connect you with others in the area. I'm also part of a Friday morning online meetup. Reach out to me if you'd like to chat.

jose

Hi.  I'm a MF operator in Phoenix, AZ.  I'm looking to expand to another market and since I have friends in Tulsa, it seemed like a good place to consider.  I'll be in Tulsa Aug 26-30 and am looking to meet with MF brokers, lenders, and property managers.  I'm also interested to meet with other investors to chat about real estate.

Please reach out to me if you're interested.

Jose

Hi all,

I bought an unseasoned land note and am looking for a note servicing company.  Does anyone have a recommendation?  The note is for land in FL.  I live in AZ.

Thanks!

Investment Info:

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

Purchase price: $1,000,500
Cash invested: $260,000

My first multi-family investment property. And, I took it down ALONE and off of the MLS! Of course, nothing happens alone. I had a great and a received a bit of patience from the seller dealing with a realtor and buyer that had never done a commercial or multi-family property.

I self-manage, with a handyman. My plan is to get the right tenants, raising rents where I can. A sale in 3-5 years should double my investment. But, I'm a buy-and-hold kind of guy. So, we'll see.

Investment Info:

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

Purchase price: $1,000,500
Cash invested: $260,000

My first multi-family investment property. And, I took it down ALONE and off of the MLS! Of course, nothing happens alone. I had a great inspection team, used my realtor, found a new loan officer, and a received at least a little bit of patience from the seller dealing with a realtor and buyer that had never done a commercial or multi-family property.

I self-manage, with assistance of a handyman. So, my actual cashflow is higher, as there are no management fees. But, one tenant was evicted right before closing (which I'm okay with), which hits my cashflow and then rents have gone up slightly. So, the cashflow isn't currently $1200. But, my plan is to get the right 10 people into my little village, raising rents where I can. A sale in 3-5 years should double my investment. But, I'm a buy-and-hold kind of guy. So, we'll see.

This is in Mesa, AZ. Prices have changed quite a bit, as my unit was just appraised at $160,000 (for my cash-out refi). With the HOA at $200 per month and rent at $1100, it might not cash-flow as high as you're hoping. But, good luck!! Let me know if I can help you out.

Investment Info:

Condo buy & hold investment.

Purchase price: $43,500

A cozy 2BR/1BA condo with an in-unit washer/dryer and bamboo trees on the patio. The complex had a larger share of domestic problems, but lots of new builds in the area meant that my unit would increase in value.

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

The beauty of this deal for me was that I had a renter ready to move-in. A very good friend was going through a divorce. She had no credit, no cash, but a good job and I knew that she was tidy.

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

My friend and I went around with a realtor until we found a place that she liked and that made my numbers work.

How did you finance this deal?

100% of this deal was financed through a family loan, interest-only. The loan was secured by my 401(k), which I could take out a loan on at any time.

What was the outcome?

My friend stayed in the unit, keeping it clean and tidy, for 6 years.

Lessons learned? Challenges?

A washer/dryer in-unit is a must!! And, if you find a deal, buy as many units in the complex as possible.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $15,000

This is my 2nd property, bought from a friend that had to move. I knew he took care of the place and that it would be rent ready. A friend needed a place to stay for a couple of months, which worked out great for me because it gave me time to become familiar with how everything worked, since I would be self-managing.

After a couple years, I started renting to Sec 8 tenants. I've learned a lot about how the system works. In my opinion, Sec 8 tenants are great!

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

The advantage to this deal was that it was owned, and lived in, by a friend that was had restored homes. So, I knew that things would be done right and I wouldn't have to put any money into it before my first tenant.

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

This deal came to me through my realtor, who I had introduced to my friend. I was given first crack at it before it hit the market. The value was FMV and housing prices were going up, so there was no room to negotiate.

How did you finance this deal?

I financed this deal through family members in retirement. I drew up a loan form and secured their funds through my 401(k), since they didn't trust real estate values. They financed over 90% of the deal. It was an interest only loan at 5% (reasonable at the time) and they could call the loan at any time after one year, with a 60-day notice. I figured that would give me enough time to refinance.

What was the outcome?

I bought the place with little money down and it's been a great rental for me! Also, I've learned a lot about managing tenants, Section 8, repair, home warranty companies, etc. The education has been the biggest gain for me. And, the appreciation is amazing, if I ever sell.

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

My realtor in the area is Ken Mayer at HUNT Real Estate ERA, T: 602-750-3678, License #: BR529794000. He has owned a condo rental for a while and has been a great sounding board for me. The thing I like about Ken is that he always finds answers to my kooky questions.