All Forum Posts by: Joseph Back

@Hunter Kamm I would definitely talk with some previous owners who have had Alltrade manage for them before moving forward, not heard anything good myself. DM me and I can recommend some great companies depending on what kind of property you are wanting managed.

Investment Info:

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

Purchase price: $83,750

BRRRRed this duplex in Frankfort, KY. Purchased off-market through a wholesaler using cash from a HELOC. After purchase immediately approached a local bank about doing a cash out refinance and was able to pull all of my initial capital back out. I now own a cash flowing duplex with an infinite cash on cash return.

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

Was looking for cash flowing small multifamily properties and came across this property from a local wholesaler.

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

Found it through a local wholesale company and was able to negotiate the price down $5,000 due to the presence of bed bugs in the left unit.

How did you finance this deal?

Purchased initially with cash from a HELOC on a personal residence. After a month of ownership I did a cash out refinancing with a local bank and was able to pay off the HELOC completely.

How did you add value to the deal?

Cleaned up the exterior and raised rents slightly on both sides.

What was the outcome?

Completed a cash out refinancing after 1 month of ownership and now own a cash flowing duplex with an infinite cash on cash return.

Lessons learned? Challenges?

Don't let the presence of bed bugs or termites scare you. Just get a quote for removal and move forward.

@Matt Bailey Would also be glad to help. DM me.

@Jimmie Powell I am a rental property investor and flipper in Lexington and would love to partner on some deals. Shoot me a pm.

@Peter Philando I have a roofer here in Montgomery I could put you in contact with. Provides free quotes and does good work for reasonable pricing. PM me

@Larry Smith Glad I was able to help. I am from Lexington and moved to Montgomery about 6 months ago. Lexington is a great market in that it has population growth, job growth and quickly appreciating properties but it is very difficult in that almost none of the deals there truly cash flow any more.

@Larry Smith I am a local investor in Montgomery and can tell you in general the banks in Montgomery are much less aggressive than in most markets. I own 18 rental units in Lexington, KY and have BRRRRed all of them with no problem getting refis from local banks there. The only lenders I have found in Montgomery that are open to it are Troy Bank & Trust and First Community Bank. Also, I don't know of any local hard money lenders but you should check out Lima One Capital, they are national but only have a $25k minimum which is much lower than most of the national companies. Hope this helps.

@Sean Barber Totally agree with @Michael Atkins. I see properties weekly that have issues with large trees, overgrown vegetation or termites that if they would have been addresses a few years before, for pennies on the dollar, then they wouldn't be multi thousand dollar issues in the present.

@Scott Hamilton I am also an active investor in the Lexington, KY and surrounding areas and would love to connect. PM me and I can provide insight on best property managers, local lenders, general area knowledge.

@Steve Hilborn I have 8 units in Frankfort currently and Kentucky Life manages all of mine as well.