All Forum Posts by: Kent Chrisman

@Tim Ger congrats on jumping in!  You're one step ahead of me but not for long haha.  I used to live in a duplex and the lady that lived upstairs had literally lived there for 23 years and I am almost positive she was a hoarder.  From what I've read and heard, the tendency is that people who have lived somewhere for that amount of time (15 years) are pretty hard on the property itself.  I'm guessing you have been inside each unit so you've seen the condition of the property first hand and hopefully its not too bad.  I would talk to the previous landlord about each tenant and then feel them out one on one and see who is more likely to pay the increased rent.  The 15 year tenant might just surprise you and pay a much higher rent (doesn't sound like they like to move!)

Jd Martin that is great insight, thanks for sharing! I agree with the vagueness of "substantially more". The POTENTIAL is for an additional 75k-100k a year to invest once they get up and running. On the flip side, I suppose that having access to that much money with no experience could be a bad thing if they don't do their due diligence.

Lets just say that I have a friend who has a very stable job, makes a good salary, has been at the same company for many years, has great credit and is extremely stabile.  All this to say that they are a lender's dream and can adequately fill the 5 C's of leding (Credit, Character, Capitol, Collateral, and Capacity). 

They received a job offer to go into a different industry where the compensation is substantially higher than they currently make however it is also extremely competitive and can be somewhat unstable.  They now might appear to be unstable to a lender (portfolio or national lenders and private money) due to the industry or just for the short amount of time that they will have been in the new role.

As a new investor, is it wise to leave stability and for a more lucrative option that would allow access to more capitol and there by increase the rate of property acquisitions?

What matters more to you in REI - Credit or Capitol?

@Jacob Carroll I'm still pretty green when it comes to REI and the BP forums but I would refrain from publically sharing their name. If someone would like to know then certainly feel free to share via pm as sharing information and helping one another is what BP is all about. If they are bringing a countersuit against you and they stumble across this forum, they will have a stronger case against you and could possibly accuse you of libel. It does sounds like they have not upheld their part of the bargin though. Thanks for sharing.

@Michael Swan We are fine but my father-in-law's 35,000 sq ft furniture business flooded and he pretty much lost it all.  I've been helping with the clean up the last 5 days.  I really appreciate you taking the time to talk!

@Michael Le thank you! 

@William E. I hope you an your family are dry and safe after last week. That's a great idea, I didn't even think of that. I'll definitely be speeding them up going forward!

@David Thompson thanks for the welcome and the opportunity to learn!  I'm actually down in Houston, well what's left of it at least.  I'm going to send you an email and we'll go from there.  Thank you!

@Gilian Gegawin There is so much great information here on BP - I am extremely excited about learning and connecting with the community here!  

@David Michael thanks for the welcoming and the input!  My first thought was using the 1031 but that would mean letting go of the asset which I am hesitant to do.  I'm not emotionally attached, it is just that it is a fantastic house in a great market.  I agree with you in that I need to look at the numbers of a refi before being able to accurately asses which method works best.

I guess to use the 2% rule on say a $500,000 property to determine rents would be based on the number of units.  I'll also want to do my own evaluation of the sub-market to see what comparable rents are as well.

Thanks again!

Hello BP! I'm new to the REI game and am more than fired up to get going. Though I consider myself to be in the learning phase, I hope to have a contract on a 8-12 unit multifamily property by 3/1/18. I have access to about 100k by doing a refi on my house and am currently looking for and evaluating partners in hopes of creating a multifamily investment corporation and this first deal would serve as a learning tool. I've completely inspired by the stories of @Michael Swan and @Joe Fairless and what they've accomplished is exactly what I want to do.

I'm currently reading a REI book a week and listening to two BP podcasts a day in hopes of accelerating my learning. If I'm remembering this correctly, I've heard on the two of the latest podcasts from @Austin Fruechting and @Brentin Hess that they listened to every single podcast on BP and so I've decided to do the same.  

@Brandon Turner, maybe you could start the #BPChallenge?  I'm starting at the  very beginning, Ep. 001, although I've listened to the latest 15 or so podcasts.  That being said, I'm 6 days in and on Ep. 14.

I do have a few questions that I'm hoping the BP community can guide me on and if they don't get much traction here, I'll likely break them out into a separate topic:

• Does the 2% rule apply to multi family?
• In multifamily deals, is having different partners on a deal by deal basis more advantageous than having the same partners and operate under a corporation?
• Would the best means of getting into multifamily properties be through a refi on my house to get 100k-150k or a 1031? 

Thank you BP!  I hope I can provide as much value to the community as it has already provided to me.

@Brandon Turner Houses that flooded, even though this is considered to be an 800 year flood, will be harder to sell in the future as they are now prone to flooding.  The unfortunate thing is that Houston has major floods every other year at the least.  Last year was the "Tax Day Flood" which was an unprecedented 200 year flood at the time and now this.  Areas that have never flooded before are now underwater.  I guess it's a bit of a double edged sword as when its good - its great and when the price of oil drops or it floods - well, you know what happens.  I'm sure there are some good deals out there but I would be weary of investing here as your investments may get washed away.  All that being said, Houston is not going anywhere.  This city makes the world go round and until alternative fuels take over, it will be business as usual.

@Joe Splitrock is right, this will be a disaster area for months if not a year or more.  By the time the market rebounds and life gets back to normal.... it will flood again.