All Forum Posts by: Lindsey Clark

I will keep that in mind @Darius Ogloza. Tenants pay their own utilities except for water. I did include that into my analysis.

Especially in this market. We really don’t know what it will look like in 2 years. I’m flexible either way. If I end up holding the property for longer than I plan and “only” get to cash flow, that doesn’t sound too bad either. @Nick Robinson

Thanks for the advice @Jon Kelly. That was my logic as far as bringing rents up. It is obviously not the same as adding value to a 5 unit or more but still has some impact. Especially since the area I am buying in has a pretty large range for what 2/1’s will rent for depending on updates and amenities.

@Nick Robinson yes I am ok with that. I am purchasing the property below market value. Comps are selling for $280,000-$290,000. Between buying right and the down payment I am hoping with even a little appreciation there will be enough equity to 1031 into something bigger in 2 years. Cashing out after a rehab to buy more property would be a good idea so I can keep BRRRing until it is the right time to sell all of the properties and buy one large apartment like @Erickson Sainval suggested. 

@Erickson Sainval thank you for your feedback. What you are saying makes perfect sense. 

@Nick Robinson, thanks for the feedback. The property is located in Ohio. Definitely more of a cash flowing market. However, it is located in an area with an excellent school district that has seen steady appreciation. If it doesn’t appreciate the way I am hoping I can still enjoy the cash flow until it does like you said. 

Hi BP! Newbie here. I am in contract for a fourplex. I am purchasing it for $250,000. It is located in an area where property values have continued to increase annually. I would like to fix up units as they become vacant and increase rents. Potential rent is $3,000/ month ($750/unit). There is currently one vacant unit and one unit being rented below market rent. My plan is to budget $2,000-$3,000 per unit for the rehab. My long term goal is to scale by owning one apartment with many units. I am wondering which exit strategy will work best. Here is my logic on each exit strategy. 

Which exit strategy would you choose?

Option 1- BRRR. Pro: I can use cash out money to purchase another property and still benefit from cash flow of this one. Con: Decreases monthly cash flow on property. Short lived until next property starts to cash flow.

Option 2- Value add. Add value by fixing up properties. Get rents to market value. Hold for 2 years while increasing rents each year. Sell and purchase larger property. Pro: No need to fix up properties as nice as if I was relying on a cash out for BRRR. Just nice enough to increase rent. Con: Money tied up in property for 2 years.

Option 3- Combination of option 1 and 2- Fix up property and increase rents. Cash out refinance. Purchase another property with the cash out money. Sell property in 2 years in order to purchase larger MF. 

Option 4: Other. Enlighten me. 

This platform is here for investors to share with each other and think creatively to find solutions. I appreciate any feedback that was left. I don’t agree that some advice given speaks against peoples character. I see you are a property manager @Drew Sygit . Just to be clear the 5% renewal fee was not for managing my property. It was just for finding me a tenant that one time. When others on here advised me to let that contract run its course and start a new one I believe it was in the interest of not having to tell my tenants they could no longer live there anymore because of this annual fee. By the realtor not speaking to me plainly about the fee from the beginning (and me not reading the contract closely) it put myself and my tenant in a bad position. Luckily it all worked out and I noticed the fee early enough to resolve the issue. 

Hi BP fam! I am currently under contract for a fourplex in Kettering and close in about 2 weeks. I am looking for reliable contractors in the area that can do some work such as updating bathrooms, painting, change out appliances, etc. So far I have only found one contractor to give me a bid. I would like to get a few more. Does anyone have someone they could recommend? I would appreciate it! 

Thanks @James Wise. Comps show the property is priced below market. Every thing has looked good so far including the inspection. Seems like there could be plumbing issues but don’t think it’s anything that will be a deal breaker. 

@Bradley Sriro yes it was resolved! The realtor received her balance and I had the annual fee removed. I posted a little update above.