All Forum Posts by: Ken M Middleton

Hey BP family,

My wife and I are looking for someone interested in buying three ALF's (Assistant Living Facility) from a personal contact, so we can purchase the fourth. 

The owner is willing to sell one to us but needs to sell all four at the same time, so we need someone willing to purchase the other three. The homes are located in the Raleigh, NC RTP area.

The cost for the remaining three will be 825k. They are small personal ALF's with 6-8 residents per location. 

The owner has been running them for 15 years and is looking to retire from the business.

If anyone is interested in discussing, please reach out. Thanks

Hey @Tracey Pera or @Abhi Golhar, what was the answer to this question, as I don't see it here, and I'm in a similar situation. Thx for your response in advance!

@Tim Cornwell Thanks, Tim. 

@Tim Cornwell Great post. Does PEP only work in your area or are they open to loan anywhere?

Investment Info:

Single-family residence buy & hold investment in Phenix City.

Purchase price: $87,900
Cash invested: $25,037

3rd investment property. This was right beside our 1st investment property, and we felt it was a much more ready-to-move-in version. Had to put in $1625 to fix some minor issues, but we felt good about the investment from a long-term cash flow perspective. Renting for $950/month and cash flowing for $186 taking into account Capex and 10% PM fees, but we are self-managing.

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

It was next door to our first investment property and seemed like a much better deal, so we felt compelled to get it.

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

MLS and through our realtor.

How did you finance this deal?

Conventional financing 20% down.

How did you add value to the deal?

We only added cosmetic changes to it. Nothing crazy.

What was the outcome?

Renting at $950/month and cash flowing $186 taking into account CapEx and 10% PM, but we are managing it ourselves.

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

Tiffany MacManus

@Brandon Rush Thanks, man. I'm going to see if I can work this in there. Thanks for taking the time to respond!

Hey all,

We've just purchased our third house and had our first person back out of our lease after doing a few things for them to sign it to make the house move-in ready and pushing the lease start date out a few weeks. This potentially caused us to lose out on a few other tenants who were ready to begin the lease ASAP, but we decided to go with this couple because they had better credit scores and financial situation.

Does anyone have any advice on ways to prevent this from happening, such as including a fine for people backing out or requesting the security deposit upon signing of the lease?

For our past two houses, we just asked them to pay the security deposit before they got the keys, but now I'm thinking that was a mistake.

Any and all advice is greatly appreciated.  Thanks in advance!

KMM

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $87,000
Cash invested: $1,200

This is our second investment buy. It was in a B- neighborhood, so we were a little worried about being able to rent it out initially but we had 100s of applicants because of how nice it is. We were able to rent it at a premium and self-manage for a cash flow of $300 per month.

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

It was a very nice house and move-in ready with little to no work needed.

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

MLS.

We didn't do much negotiating because we felt the price was fair based on the 1% rule and what we could get from a monthly rent perspective.

How did you finance this deal?

20% down conventional loan.

How did you add value to the deal?

We didn't do anything to this other than buy a refrigerator.

What was the outcome?

Rented at a premium price to get $300 month in cash flow after accomodating for capital expenses, vacancy, and PM fees.

Lessons learned? Challenges?

Nothing major so far, but there is always time. LOL.

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

Yes. Tiffany MacManus and Jenny Heins

@Eddie L. We decided to self-manage for now and try to do it from afar. It is only two hours, so it hasn't been over burdensome. As long as we keep it small, probably no more than 3-5 properties, we think we should be fine handling this ourselves. Also, we are thinking it will allow us to really learn what we should expect from future property managers as we look to scale. So far, so good, but we'll see...

@Michelle Jezycki Awesome. Thanks so much. Definitely understood and agreed. Appreciate you take the time again!

KMM