All Forum Posts by: Kelly M.

Hi Everyone,

I was wanting to gain some guidance on how you navigate finding a new tenant when the property is currently occupied. My current tenant does not have a problem with me showing his apartment. However, I do not want to waste time just showing it to anyone who asks. This is what I did when the property was vacant (and I don’t have a problem with it), but the circumstances are different now that someone is living there. I normally assess the applicants when I showed the apt. I talk to them to see if they would be a good tenant. If they were interested, and I thought they would be a good fit, I sent them the application.

Now that the property is occupied, I would like advice on questions I should ask prior to showing or if you think pre screening before showing the apt is a bad idea. I’ve never had a pre screening process. My goal is to waste less of both mine and my tenants time.

Thanks!

@Levi Klein

Good for you! That’s awesome!!!!

I also did house hacking as my first investment and it went really well. I still have that property, and it produces great cash flow. Multi family properties are very difficult to find around here (as we know). Maybe you could look at a SFH or TH with a full basement, walkout and full bath. You could add a kitchenette?

Hi Ron,

My flood insurance for this property is around $2000/year.  I have a $2500 deductible with a $250,000 limit. Well worth it obviously, as I needed it last year.  The retail space is the only part of the property that was affected by the flood, so $250k is not really necessary. It is required by my lien holder. 

Investment Info:

Other commercial investment investment.

Purchase price: $185,000
Cash invested: $100,000

Three unit rental property (two apartments, one retail) on Main Street Ellicott City.
Complete four floor renovation. Converted from two rental units to three during renovation.
Currently renovating retail space, both apartments are rented.

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

I wanted something close to my home. I wanted rental income, and I wanted to renovate to add value.

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

I saw that the property was empty, and had been for a while. I contacted the owners directly. The negotiation was tough. It took over a year.

How did you finance this deal?

I was able to find private money, my own savings, and a commercial loan.

How did you add value to the deal?

I added a rental unit, and I did a complete renovation.

What was the outcome?

Excellent income and value added property.

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

I had an attorney look over the paperwork. Virginia Partners Bank financed the purchase price.