All Forum Posts by: Kyle Lewis

I don't know much about the Atlanta area, but regarding timeline, I would go sit down with a few FHA approved lenders and discuss your plans with them - timing, income, property value range, gifting, etc. I wouldn't sign anything, give out your SSN etc just yet. By sitting down with a few you'll get a few different opinions and options to choose from when it comes time to pull the trigger. I'd guess the lender will take about 30 days to fund the loan.

Also, I'd recommend always looking at and analyzing properties. Even if you're not ready to buy quite yet, you'll be better equipped to spot a good deal vs bad deal when the time comes. You will have to pay PMI, so make sure you build that into your model.

Good luck!

Congrats! Cozy.co is a good app to organize your properties, create listings, accept web based applications, run credit check and background check, and collect rent payments for free. They don't have a strong accounting application, so I use waveapps.com which is a free accounting application to organize all expenses and income. They also let you easily create multiple 'businesses' which I use for different properties. Not sure about mobile apps for either.

Hope that helps!

I've heard allure TrafficMASTER flooring recommended a lot. I prefer luxury vinyl over carpet because carpet will get dirty and need to be replaced every few years whereas vinyl will continue to look good for much longer.

From my experience, granite isn't much more expensive than cheaper alternatives and it's appealing to tenants and lasts longer. I'd try to go with granite unless the cost difference is much larger in your area.

Looks great, congrats!

Great idea. This is what the BP community calls 'house hacking.' There are pros and cons to renting with airbnb versus leasing to longer term tenants. Airbnb could generate more income, but will be much more time intensive. Good luck!

Hi @Peter Vang Jensen, I use Wave Apps and really like it. It's a free solution that makes money from credit card processing fees, but it isn't mandatory to use that service. What I do is create a seperate 'business' for each property so it's easy to report individually and toggle back and forth between them.

waveapps.com

@Sergio Picciuto The address is 14918 Milverton Rd, Cleveland, OH 44120

@Achraf El Churafa I just sent you a PM, thanks!

My partner and I have a 12-unit building in Cleveland, OH under contract and are looking for another partner to join us on the deal. Below are details of the deal:

Purchase price: $170,000

Rehab cost: $100,000 (have received 3 quotes from contractors)

ARV: $456,543 (based on income approach to valuation and 10 CAP)

Units: 12 (all 1BR/1BA)

Our strategy:

• Create safe, clean, and updated units for tenants.
• Increase rents to market rate. As the area develops (see next section), continue raising rents.
• Reach $45,654 in NOI
• My partner and I love cash flow, but would be open to selling at the right price in 3-5 years.

Why we love this deal:

• This development is in progress across the street and this development 2.5 miles away has broken ground.
• Only a 3-minute walk away from the property is a light rail station, which provides service to downtown Cleveland in 20 minutes.
• Property falls on the border between Cleveland and Shaker Heights. The property address is Cleveland (lower taxes) yet the property sits inside the Shaker Heights School District.
• Value add opportunities:
• We can convert one of the units from a 1 bedroom to a 2 bedroom.
• Purchase coin operating laundry to increase monthly income by $215/month.
• Appraised at $200,000 in 2014.
• Strong rental comps in the area.
• Already conducted our home inspection. No major concerns.

Risks/Cons of the deal: Poor historical performance. Current owner purchased the property sight unseen and has never put in the money or effort required to properly reposition the property. While the historic rents make it harder to get funding, it is also the reason we’re able to acquire the property at a great price.

Why we’re looking for another partner:

• Due to poor past property performance, we’re having difficulty finding financing for the purchase/rehab. Bringing another partner onboard will help us raise/pool funds.
• My partner and I want be active in this investment and are willing to perform a lot of the legwork, but could benefit greatly from adding someone with significant experience to our team.

The partnership: We have a few ideas but are also flexible and open to suggestions on how to structure this partnership.

Here is a link to the BRRRR Analysis

If interestested in partnering, please feel free to contact me for more details.

Thanks!

Kyle

Hi @Sergio Picciuto

Still available? Any interior pictures?