All Forum Posts by: Kim Wendland

@Jay Hinrichs In our Texas market, property tax increases due to valuation increases every year. No real choice but to share that increase with tenants or pretty quick your cash flow evaporates.

@Thomas S. Agreed. Managing my parents portfolio I've learned it's best to maintain the investment, make incremental and proactive preventive maintenance every year. Be sure to keep an inventory and projection of major maintenance and save for it. That allows incremental rent increases to be easier for tenants to accept. Generally, this approach keeps tenants and owners happy.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $170,000
Cash invested: $60,800

3-2-2 1325 sq ft per unit duplex
13.42 Cash on Cash ROI
6.16 Gross Rent Multiplier
1.9 Debt Coverage Ratio
$206,000 Y1 property value
$21,200 Gross profit if sold today (but we are holding)

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

BiggerPockets education and tools.
Seeing other's success.
REI is the next step in our financial plans.

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

Realtor found it. We had to pay $5,000 above asking; but the math was still good.

How did you finance this deal?

20% down, 80% finance, personal assets for reno

How did you add value to the deal?

Foundation leveling, cosmetic from there

What was the outcome?

Rockin' great rental!

Lessons learned? Challenges?

Waco TX is very competitive. We're grateful to have landed this deal and had a great realtor looking out for us.
In the future, we will estimate the cosmetic work required after leveling at 1.3x cost of actual leveling.

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

Absolutely! CIF Real Estate, Jennifer Robins and her team absolutely ROCK!!!

The published HUD Contingency plan indicates they have a line of credit. But I don't find any specific updates this week. The HUD website home page says no updates will be made during the shutdown, so it seems uncertainty will increase the longer the shutdown lasts.

So far we have received our payments.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.hud.gov/sites/documents/hudcontingencyplanfinal.pdf&ved=2ahUKEwizj83X3PbfAhUKIqwKHaNvCY4QFjAAegQIBhAB&usg=AOvVaw38LuDvDE_KFXu4qtemqti8

Hey, I love and value BiggerPockets Podcasts. Its been a real bummer that my Google Play app shows the last episode published is episode 285 published 9/6/18. The website clearly has more. Anyone know whats up with the Google Play feed?

@Jeffrey Honaker. Kudos for putting your goal out there. Blessings and cheers! Keep us posted on progress.

@Linda Lape If it cashflows and the association allows rentals, I would compete for it. You can always cash out with a home equity loan.

@Carlos Soto If it cashflows, yes! The Bigger Pockets calculators are a huge help if you're not already using them.

Hi Terrez, yes...it's possible. You're right that due diligence is the key. I highly recommend the BiggerPockets tools. We use them to analyze opportunities all the time. The key success factors for what you've described seem to be 1) after repair value, 2) estimated repair costs, 3) your goal - flip, BRRRR or buy and hold. Good luck!

Hi There, Brandon's book has a great chapter on this topic. But, for our experience, we network with the property manager, network with personal contacts, network with existing contractors and have used options like Thumbtack and Angie's List. Good luck!