All Forum Posts by: Donnie M.

@Anthony Dooley Thank you for the enlightenment on Cap Ex.  I anticipate I can self-manage due to the fact that I am going full-time as an agent/investor on May 25th.  It also helps that I have another agent/investor in the office who can fly us to Dothan in 30 minutes versus driving 1:50 minutes when he is available.

I am close to getting an 8-unit in Dothan, AL under contract for $160,000.  Seller will allow me to put 20,000 down and I'll have 1-year to pay off the 140,000 at 6% interest only (700 a month for the interest only payment).  What do you think of this deal?

Estimated repairs: $40,000 and I like to include a fudge factor $8,000 for $48,000 in all.

Each unit is 2 bed 1 bath and 1000 sq ft.

3 out of 8 units are occupied with two probable evictions.  Current rent is $425 and I believe market rent is $500.

Utilities are separately metered for water and electric.

HVAC units are 10 - 12 years old.  Roof less than 5 years old.  Property is about 30 years old.

C class neighborhood.

Analysis once I get it stabilized:

Rent: 4000 (8 units renting 500 each)

Property Taxes:  150

Insurance: 120 (based on it insuring it at 200,000)

Trash: 80.  I am probably way off on this one.  Would you go for one or two dumpsters on an 8-unit?  I will call trash company tomorrow.

Property Management 10%: 400

Vacancy 8%: 320

CapEx 5%: 200

Maintenance/Repairs 10%: 400

Principal+Interest (after refinance of 20 yrs at 6% for 210,000): 1500

NET NET Cashflow of 4000 - 3170 = $830 for about $100 a door.

I estimate I will have about 5 - 10k left into the deal when all is said and done so I should theoretically have most of all my cash back out of the deal in a year after the refinance.

Thoughts?  See anything I'm missing or have terribly miscalculated in your opinion?  Thanks in advance for the help!

@Shawn Williams welcome to BP!  If you haven't listened to the podcast I would highly recommend it.  https://www.biggerpockets.com/podcast  

Hearing from people who are actually doing what you want to do and how they started will give you more confidence and possibly overcome some of the fear.  They help me immensely when I hear how many of these successful investors started off and some of them made financial mistakes.  It allows me to learn from their mistakes and from their successes as well.

I'm investing in Columbus and Phenix City so if you ever want to talk about the market here reach to me on here, by phone, or email.  Best of luck to you!

@Dan Wynn Here is another virtual CPA that does a great job @Daniel Hyman 

@Daniel Hyman  is another active RE friendly CPA on the forums.

@Chris Mylan get in touch with @Daniel Hyman

I am Donnie McGriff an investor friendly agent in Columbus, GA and Phenix City, AL. Please call, text, or email if you have any interest in the Muscogee, Russell, & Lee county markets. I have successfully done two SFH BRRRR properties that one rent for $795 and $785 in Phenix City, AL. I would love to help you get the returns/criteria you are seeking, talk through your BRRRR strategy, and I don't mind making offers. Reach out in any way even if you are not ready to pull the trigger just yet and just want to chat REI.

Donnie McGriff

Bradstreet Proper, LLC.

334-312-1632

[email protected]

I am about 30 minutes from Auburn in the Smiths Station/Phenix City area on the way to Columbus, GA.

@James Watts

Do you mind updating on how your experience with Fund & Grow has been?

How long after signing up did it take to be able to get the credit card funds into your bank account?  How difficult is it to get the funds there when you need them?  I know the credit can be used as a traditional credit card but I would want to be able to transfer funds to a bank account for cash offers.

What kind of transfer fees are you paying to the credit card company when you do transfer to your bank account?

@Xavier Taylor

1.)  During your coursework listen to as many BP podcasts as you can.

2.)  Why wait until after your coursework?  Go ahead and connect with local people in Montgomery who are flipping or doing buy and hold (whichever you are pursuing) or agents that are rocking it. 

I took my agents course on reiexpress.com as an online school.  Hit me up if you have any questions about the coursework.