All Forum Posts by: Kenneth Williams

2015 Porsche Panamera owner here!    In my opinion there is nothing like Porsche Engineering.

@David Li post a pic of that beauty. Very inspiring post. Keep leading by example. I wish I had your discipline at 23

@Bart H. Firstly, Thank you! Your reply was very informative and provided exactly the info I was looking for. Makes sense not to provide repairs until after leases are up. It would be a waste of money to do so otherwise. 

I think I will hold off adding the washer and dryer. There has to be a reason the current owner didn't bother. No need in me trying to re invent the wheel. 

You're right..Money orders are a great idea and something that doesn't require tenants to have internet or a Bank account.

@Matt M. Thanks for info! PM sent.

@Sam Shueh Thanks for the reply! Surely in what I think is the 7th or 8th largest city in the U.S there is bound to be at least one management company that will mange this property. It's not Compton. It's still San Antonio. 

@Brian Phelt You interested?

@Federico Gutierrez For me personally, The things that you mentioned that needed to be replaced or fixed are just the cost of doing business or "additional skin in the game". I'm not gonna by a 89 Buick and not expect to replace some things along the way. What if get a massive water and sewer bill? I guess I'll have to adjust accordingly. Brother you are definitely a Pessimist. This property was built in 1970 I'm assuming along the way some components  that will give out and thats fine I'm okay with that. Either way Thanks again for your input.

@Jake Walroth You hit the nail on the head!  "there will be hiccups along the way no matter what investment you make". I'm not waiting on Brandon Turner to walk through the door and spoon feed me a deal lol. It's a good deal. Not because I say so but because the numbers do. 

Good to know that appraisers will consider the  generated income when valuing the property. Thanks Jake!

@Bart H. Got it! 

@Federico Gutierrez Thanks for the reply although I must say I am confused by your post. To answer a few of your questions. Yes,  I have no problem purchasing a property on my own. With that said I have met a more than few people on the forum and in my Local area who are willing to provide guidance if need be. Maybe it's the soldier in me but I would rather lose and learn than sit and wait on someone else to hold my hand. 

I am buying the property from the owner, the wholesaler brokered the deal. 

No, I have not  seen the leases. Which is why I stated "I THINK the current tenants are on a year long lease". I'm sure once I submit my official offer Tuesday that this along with other docs will be provided. 

From my understanding when calculating multifamily comps it's  common to push the distance out a little further while also taking into consideration the cash flow of the property. Are you saying that since there are no other multifamily properties in the immediate area that the loan will be denied? 

I'm also curious as to what "Red Flags" you're sniffing out? You seem pretty confident that Sh$t will be hitting the fan, I would love to here more. Thanks again

So I'm currently in the process of purchasing my first deal! A fourplex here in San Antonio for $108K (Owner wants of the rental game). My intentions are to perform the Brrr strategy so I will also be borrowing an additional $12K for light based cosmetic rehab to each unit. Bringing my HML to a total of $120K. The property is fully occupied and grossing $2400 per month. Current owner pays water and each tenant pays their own electrical. After visiting the property and talking with two of the tenants I would probably classify the property as being "C" or just very low income area. From what I've been reading on the forum there is a difference between the two. All in all I'm fine with the area. I grew up in similar environments so I get it. I work full time for Uncle Sam so I will definitely need property management. With that being said a few things I'm unsure about...

My HML will be dependent on the appraisal next week. I need the ARV to come in around $170K. The wholesaler insist that the property would easily come in around $190K. Thing is there aren't any other multi family properties in the area to compare it to. How will this decision be made? Will the cash flow be taking in to account? I looked the property up on AgentPro247 and its accessed around $80K which seems extremely low in my opinion.

I think the current tenants are on a year long lease. How does one go about doing a small cosmetic rehab (paint walls and cabinets, new vinyl floors) if the tenants are still occupying the unit?

From what the tenants told me the current owner has been somewhat of a friend to them. Accepting cash payments monthly. These are not exactly the type of folks who I imagine have a checking account at the local credit union. No judgement but what are my options here? Is there some alternative being used for individuals in these types of neighborhoods who have bank accounts?

In the back of the fourplex there is what appears to be a mini storage house. One of the tenants mentioned how they have to travel extremely far on the bus for the closest laundry mat. Would it be worth it to put some sort of laundry system on site? What would be the best route to go? Coin machines? Purchase a couple of scratch and dent units and a flat fee of $50 to the rents? Or just leave well enough alone?

What type of Insurance do I need to be looking at getting?

Obviously I am gonna want out of my hard money loan asap. I spoke with Navy Federal Credit Union and they said there is no seasoning period for refinancing (although the young lady didn't seem to be all that knowledgable). So essentially I could start the pre approval processes now for the Refi and maybe only have carry the HML for a month or so?

Once the Refi is complete at what point can I tap into the equity? Cash out Refi is a no go in Texas from what I understand, so I would be applying for a HELOC.

What contingencies should be included in the contract offer?

Thanks in advance!

@Francesco G. @Jared Bouzek Thanks a ton!