All Forum Posts by: Kavin Kuykendall

Investment Info:

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

Purchase price: $850,000
Cash invested: $140,000
Sale price: $1,476,500

Source: Cold Call
12 unit multi family
Purchase: $850k
Loan 1
$250k 1st position loan (down payment to seller)
2 yr balloon,12% interest only
Loan 2
$600k 2nd position seller finance
3yr balloon, 0% interest, 30 yr am, 8 month deferred payments

Three 4 unit buildings. Took this over from original owners at severe under market rents. We used private money and seller finance for acquisition, raised rents, renovated one building, and sold each building separately as 4 unit buildings.

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

I believe in the power of mom and pop multi family

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

Cold call direct to seller

How did you finance this deal?

Owner finance and private money

How did you add value to the deal?

Renovations and rent increases

What was the outcome?

Exit at nearly double the initial purchase. Return on capital invested ~375%

Lessons learned? Challenges?

Managing contractors and verifying quality of work/timelines can kill a deal.

Investment Info:

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

Purchase price: $850,000
Cash invested: $140,000
Sale price: $1,476,500

Source: Cold Call, direct to seller
Product: 12 unit multi family
Purchase: $850k, owner finance
Loan 1
$250k first position loan (down payment to seller)
2 yr balloon, 12% interest only
Loan 2
$600k second position seller finance
3yr balloon, 0% interest, 30 yr am, 8 month deferred payments

Three 4 unit buildings. Took this over from original owners at severe under market rents. We used private money and seller finance for acquisition, raised rents, renovated one building, and sold each building separately as 4 unit buildings. The buildings were already separately parceled which made this process easy.

Return on capital: ~357%

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

I believe in the power of mom and pop multi family

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

Cold call direct to seller

How did you finance this deal?

Owner finance and private money

How did you add value to the deal?

Renovations and rent increases

What was the outcome?

Exit at nearly double the initial purchase

Lessons learned? Challenges?

Managing contractors and verifying quality of work/timelines can kill a deal.

Investment Info:

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

Purchase price: $250,000
Cash invested: $15,000
Sale price: $385,000

This triplex is my first deal. I was able to partner with my parents to secure funding for the down payment via their HELOC. I pay them interest-only payments allowing me to maximize cash flow. I have slowly worked on improving management to increase cash flow from $0 to ~$800/month currently. I pour all cash flow back into the property, slowly renovating and increasing rents.

Sold $385000
Net return on capital ~717%

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

Initially intended as a long term hold

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

Found on Craigslist, direct to seller.

How did you finance this deal?

FHA+ partner money

How did you add value to the deal?

Small renovations over time

What was the outcome?

Sold for $385,000

Lessons learned? Challenges?

I had no money when purchasing so I skipped inspections which was a big mistake.

Investment Info:

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

Purchase price: $250,000
Cash invested: $15,000
Sale price: $385,000

This triplex is my first deal. I was able to partner with my parents to secure funding for the down payment via their HELOC. I pay them interest-only payments allowing me to maximize cash flow. I have slowly worked on improving management to increase cash flow from $0 to ~$800/month currently. I pour all cash flow back into the property, slowly renovating and increasing rents.

After small renovations and improvements I decided to sell after moving away.

Sale price: $385,000
Return on capital invested: ~717%

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

Initially intended as a long term hold

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

Found on Craigslist, direct to seller.

How did you finance this deal?

FHA+ partner money

How did you add value to the deal?

Small renovations over time

What was the outcome?

Sold for $385,000

Lessons learned? Challenges?

I had no money when purchasing so I skipped inspections which was a big mistake.

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $620,000
Cash invested: $20,000
Sale price: $727,000

Source: Cold Call
Purchase: Off market with owner financing.
Price: $620,000.
Loan:
$20k down,
3 year balloon,
4% interest amortized over 30 years.
Sale: $727,000

This was a 4 unit property located a few blocks from the beach in Panama City Beach Florida.
We decided to sell due to the amount of work needed with no renovations and sold for $727,000 less than a year later. Net return was 248%.

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

I believe in the power of small multi family

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

Cold Call. Direct to seller

How did you finance this deal?

Owner Financing

How did you add value to the deal?

Buying under market value

What was the outcome?

248% return on capital

Lessons learned? Challenges?

Always do your due diligence and buy low. We found a septic issue after closing because we didn't inspect. This could have killed the deal for us if we had paid much more.

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

I was there agent on buy and sell.

Killer! Thanks for sharing!

Solid Joey!

Investment Info:

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

Purchase price: $115,000

Contributors:
Sean Wilkinson

I found this duplex in late 2019 but discarded it due to the initial asking price. A few months later I received a call from the owner letting me know they had lowered their asking price and were very motivated to sell. Still lacking experience (and confidence) to tackle an extensive project like this on my own, I reached out to a local investor with who I had built a relationship over the past year. He ended up funding and managing the deal while allowing me to work and learn the entire BRRRR process. I negotiated the price, helped manage the rehab, and gained knowledge in construction all while getting paid a finder's fee. This project is still ongoing but has turned out to be a near-perfect BRRRR approaching the refinance stage.

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

As I learned more about the BRRRR strategy, I started to look for a small multifamily project I could partner on in order to learn the process.

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

I found this deal on Craigslist, I negotiated directly with the seller down from $170k to $115k.

How did you finance this deal?

I didn't have the capital or experience for this deal, so I brought it to a local investor who took it over while allowing me to learn the entire process.

How did you add value to the deal?

This was a major rehab project. We ended up taking this from a duplex with a basement to a triplex. We added a bathroom and kitchen in the basement on one side creating a 1/1. Upstairs was completely refurbished into a brand new 1/1. The other side is under construction right now, it will be a 3/1 when finished.

What was the outcome?

Now a triplex, two units are filled with Section 8 tenants, with plans to fill the third unit the same way. This project is approaching the refinance phase and should cashflow very well.

Lessons learned? Challenges?

My biggest lesson on this deal was the value of education and partnerships. Progress through a partnership is better than plateauing because you refuse to share a deal. I gained years worth of knowledge and a great partnership all through bringing this deal to a more experienced investor.

Investment Info:

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

Purchase price: $250,000

This triplex is my first deal. I was able to partner with my parents to secure funding for the down payment via their HELOC. I pay them interest-only payments allowing me to maximize cash flow. I have slowly worked on improving management to increase cash flow from $0 to ~$800/month currently. I pour all cash flow back into the property, slowly renovating and increasing rents.

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

My goal is long term wealth building through cash flowing buy and hold real estate. I believe multifamily provides a number of advantages over single-family so I was looking for a 2-4 unit deal to build experience.

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

I found this deal on craigslist and negotiated directly with the seller over the course of a few months. Asking price was $270k, purchase of $250k.

How did you finance this deal?

I funded this deal with an FHA loan. My parents partnered with me bringing the down payment and a small reserve fund from their HELOC. I will pay them 8% annually for 5 years plus their HELOC interest before cashing them out.

How did you add value to the deal?

I knew going into this deal that it was poorly managed, under market rent, and had a number of deferred maintenance issues. I have slowly worked on turning this property around as capital allows.

What was the outcome?

While this project isn't done, I have so far increased the monthly cash flow from $0 to roughly $800 after all expenses.

Lessons learned? Challenges?

I went into this deal with no experience and very little knowledge of the market or real estate in general. I now believe I paid close to market value, if not a premium, at the time of acquisition. I see this deal as a great example of just how forgiving real estate can be. I paid too much, came in with no landlord experience, no construction experience, and yet now own 3 units cash flowing at $800 per month. With enough time, any real estate purchase can be a deal.

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

None, unfortunately.

Awesome @Blake Dailey, thank you for the reference! We just moved here from WA State, I'd love to connect!