All Forum Posts by: Kiley N.

Be yourself and follow your dreams. 

Those who matter won’t mind, 

and those who mind don’t matter.

Thanks for the inspiration @Alan Pederson

@Annie Dickerson Sounds like you've derived your answer. Assuming all the qualitative factors that went into your purchase are still there for this property, the vacancies strike me as a positive head start on stabilization. If any questions come up in the lending process you can get ahead of that with your, now solid, explanation. Congrats on the acquisition!

Agree with @Thomas S. and @Joe Villeneuve :  Extracting the equity to redeploy into either a new asset class or a diversifying RE income stream would mitigate the risk of that equity evaporating due to market conditions.  It is also a way to keep your money working for you rather than sitting as equity on a balance sheet.  

From there it is a matter of how passive your father would prefer the next investment to be.  

Originally posted by @Jeff Efird Jr:

@Kiley Nakamura Yeah sounds good. What stage are you in?

We have the team in place and are currently scouting for land that will support quadplexes.  As @chrisyoussi said, we are seeing 1% as a realistic projection.  

It's great that you have a nice plot on hand and are capable of managing the projects yourself.  

@Jonathan Farber :  Agree with the above, have them painted.  Also, if it is possible in your area, see if you can fit some extra stalls that you could charge rent on.  

@Jeff Efird Jr :  My partners and I are doing this same thing in Huntsville, AL.  Love to trade notes with you and, of course, wishing you the best of luck!

@Chivas Miho

Hi @Adam Philpot :  As others have mentioned above, the more historical data you can get the better.   In this case it is unfortunate that the sellers appear to be withholding information that would help you to make your offer.  This lack of information doesn't necessarily make it a bad deal.  You just need to find your own way to verify what you are being told.  The Huntsville market can vary widely depending on the street and there are some sellers who do not even have their own financials.  

Shoot me a PM if you'd like to take this offline for a deeper dive into your specific area.  

Based on what you've shared:  If all 12 units were occupied in June, then $500 for a 2/1 is pretty consistent with the C-/D class numbers I've seen around the area.  If that is the case, then chances are that you need to prepare for higher expenses over time than what you've been given.  Good inspections will also be key.  

@Nate Morris :  PMed you.

@Shawn Coverdell :   I second @Dennis M. , what is your ongoing management system like for these properties that you are BRRRRing?