All Forum Posts by: Jason Piccolo

Investment Info:

Other commercial investment investment in North Little Rock.

Cash invested: $2,300,000

LP in restaurant/hotel investment

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

We loved the location and the opportunity to revitalize the area

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

This deal was presented to us through a developer friend

How did you finance this deal?

Self directed IRA money

How did you add value to the deal?

We were strictly money partners

What was the outcome?

It’s currently in the construction process scheduled for September 2024 delivery

Lessons learned? Challenges?

Covid was a challenge as we weren’t sure what was going to happen with the investment. Luckily the construction was funded last year as a rebound in hospitality is expected.

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

No. We are strictly LP’s

Hi @Aziz Nayani,

Like others have mentioned it will depend on the condo complex, but most will require tenants for at least a year lease. As you probably know, depending on how much you are putting down it’s really tough to cash flow right now due to rates. 
Have you looked into passive investments like becoming a limited partner in an apartment syndication?  There are some groups out there that don’t require you to be accredited and pay around 7% a year as a monthly or quarterly distributions with 20-25% upside after 3-5 years. The depreciation tax benefits are also really great. You can build up a nice cashflow to replace your W2 income. 

@Huiya Xiao Another option I would consider is passively investing in apartment, car washes, hotels, self storage or ATM fund syndications. Even if you are not an accredited investor there are groups out there that take investments as small as 10-25k increments and pay you 7-10% annually on a monthly or quarterly basis with total upside of close to 20-25% during a five year hold period. There are great depreciation tax benefits and it’s an easy way to replace a W2 income over time. After the 3-5 year hold period you can defer taxes by 1031 exchanging into another investment usually within the same group.

@Jovan Kitchen I would contact the HOA and see if it's warrantable. If it is warrantable, contact a mortgage broker and run some numbers on it. Then see what it would rent for. There are great calculators on bigger pockets site.

I completely agree with @Russell Brazil. A good property manager is the key. There are plenty listed Bigger Pockets. 

@Nadine Smith I have two ideas for you. Depending on how much you can afford for a monthly payment, I would apply for a FHA mortgage and purchase a condo in Fairlington villages. The one bedrooms there run about 300-320k and the condo fees are cheaper than most other complexes. If you can find something that needs a little bit of cosmetic work, that would be better to fix it up. That would get your foot in the door to owning a primary residence.
The second idea would be to passively invest with a good syndicator. I don’t know if you are an accredited investor, but Goodegg investments has some non accredited options for funds to invest in that pay quarterly. I believe the minimum is 10k. There are great tax benefits to investing in these funds passively and the syndicators do the work. 

Yes, that’s the minimum. 

@Jake Van Havenaar you can do 3.5% down with an FHA loan, but that will require more that 10k. Condos in Fairlington start around 300k for a one bedroom. If your goal is cashflow there are apartment passive investments you can do that will get you cashflow and tax benefits. Goodegg investments has a fund that takes 10k minimums. Otherwise I would keep putting money aside to do an FHA loan.

@Jake Van Havenaar Yhere are one bedroom condos in Fairlington Villages that I would recommend as a great start point.  It’s a great community with lots of amenities. Multifamily are few and far between in Arlington. You will find some quads in DC proper, but they are in short supply as well. Typically pricing is 1 million plus. DC is very tenant friendly so you would need to be very vigilant about screening your tenants. Most duplexes are sold off as individual townhomes in Arlington starting at around 600k plus. 

Hi Jake,

I live in Arlington and we have had great equity growth. Cash flow has been a little tougher to come by. Arlington is a highly desirable area due to great schools, employment and proximity to Washington, DC. We started with condos and then eventually purchased a fixer townhouse. I would try to get on some wholesaler lists because buying houses on market unless you are doing a live in flip/hold is tough. House hacking is another great option. Try going to some REIA groups in the area as well. Traction REIA is a good one.
Jason Piccolo

Weichert Realty 

703-861-8307