All Forum Posts by: Ley Nezifort

Thanks, Craig; definitely. Already on the contract for the next one. 

Ryan, once fully rented, monthly cash flow will be around $1600

@Brent Paul Thank you! It took a while with 5% Down because we were competing with a lot of 20% Down or all cash offers. But we were patient, and we finally got one.

Investment Info:

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

Purchase price: $465,000
Cash invested: $23,250

Contributors:
Markus Jackson

Triplex in Newark, New Jersey; 9 Bedrooms, and 5 Bathrooms, currently using as a HouseHack.

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

Cash Flow

How did you finance this deal?

FHA 5% Down; Had a seller concession to cover closing cost

What was the outcome?

Projected Cash on Cash after year 1: Around 35%

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

Peter Boutros

Hello BP ,

My partner and I are closing on a property , and we’re trying to decide which bank to open bank an account with.

Apart from the flexibility/relationship building that a local bank would offer, are there any additional benefits of using one for your rentals ? Why has you chosen one over the other ?

We Would really appreciate any insights.

Thanks

@Christopher B. Which area are you looking to buy in ?

@Nik S. That’s amazing man! Would you mind going into a bit of details as in location , how you financed it , did you have to get a co-signer to meet the net worth requirements ? How did you fund the down payment ? Would love to hear your story to guide me through my first commercial property journey.

@Bjorn Ahlblad That’s great , where is your 12 units located ? & which area are you looking to get the next one in ?

@Mark Smithey The Fed are expected to cut rates again, so money will be quite cheap over the next few months. I’d refinance them all, lock in the lower rates, and use the money to get into a multi family. Given you already have 3 units, I’d say you have a good amount of experience, so getting in the multi family now will help you reach to your goal faster. Listen to episode 108 on the BP Podcast

@Spencer Harvey If I was in your shoes, I'd totally use the HELOC money for the BRRRR strategy instead of using it for down payment for a couple Buy & Holds . By doing that , you'll be able to pay off the HELOC within a year or so (when you refinance) which means you can repeat the entire process a lot sooner.

Regarding your specific concern, I wouldn't consider your situation as over leveraged. That 70K is literally gaining 0% right now. I'll just make sure that the return I'm getting from what I invest the HELOC in is way higher than the interest I'm paying on the HELOC.